KCC launches its first virtual credit card
Move to expand the millennial cardholder base
Krungsriayudhya Card (KCC), a credit card unit of Bank of Ayudhya, launched its first virtual credit card to serve young cardholders in the digital age.
KCC yesterday launched Now Credit Card as its first virtual card. The launch aims to expand its base of Gen Y cardholders, ages 21 to 35. It also aims to meet the demand and changing behavior of the young generation in the digital age and the new normal due to the impact of Covid-19.
KCC plans to expand millennial cardholders to 35% of its total card base next year, up from around 30% now. The new card will be requested and used on the U Choose digital platform.
Somwang Toraktrakul, managing director of KCC, said that currently online spending through Krungsricard accounts for around 23% of total spending through the company’s credit card, up from 17% in 2020 and 10% in 2019.
Changing consumer behaviors in the digital age and the current Covid-19 epidemic have increased online spending. For next year, the company expects online spending through its credit card to increase to 30% and this would be partly contributed by Now Credit Card, Mr. Somwang said.
For the first nine months of this year, KCC’s total card spending was 120 billion baht compared to its existing 2.3 million cards. The company aims to increase total spending to 190 billion baht by the end of the year, of which 1.2 billion baht is expected to come from Now Credit Card.
The company has continuously launched new cards to attract the younger generation.
KCC aims to increase the total number of credit cards issued to 2.4 million next year, from the current 2.3 million. In addition, he plans to increase total spending on cards 2-3 times next year from this year, assuming the GDP growth rate would be around 3-4% in 2022.
“The economic recovery, improving domestic consumption and pent-up demand, especially in local tourism, would be a key factor driving credit card spending next year,” he said.
As part of good risk management, the company aims to keep NPLs at a satisfactory level next year, up from 1.17% currently, which is below the NPL rate. of the market at around 2.5-2.6%.
About 70% of its cardholders have a monthly income above 30,000 baht.