Krungsriayudhya Card (KCC), a credit card unit under Bank of Ayudhya, has launched its first virtual credit card to serve young generation cardholders in the digital era.
KCC launched Now Credit Card yesterday as its first virtual card. The launch is aimed to expand its base of Gen Y cardholders, who are aged 21-35. It is also aimed at responding to the demand and changing behaviour of the young generation in the digital age and new normal because of the Covid-19 impact.
KCC expects to expand Gen Y cardholders to 35% of its total card base next year from around 30% now. The new card application and usage will be done on the U Choose digital platform.
Somwang Toraktrakul, managing director of KCC, said that currently online spending via Krungsricard is around 23% of total spending via the company's credit card, up from 17% in 2020 and 10% in 2019.
The changing behaviour among consumers amid the digital era and the ongoing Covid-19 outbreak has increased online spending. For next year, the firm expects online spending via 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 this year, KCC's total card spending was 120 billion baht from its existing 2.3 million cards. The company targets to increase total spending to 190 billion baht by the end of the year, of which 1.2 billion baht is expected to stem from Now Credit Card.
The company has kept launching new cards to attract the younger generation.
KCC aims to expand total issued credit cards to 2.4 million next year from 2.3 million now. As well, it expects to increase total card spending by 2-3 times next year from this year under the assumption that the GDP growth rate would be in the range of 3-4% in 2022.
"Economic recovery, improving domestic consumption and pent-up demand, especially in local tourism would be a key factor encouraging credit card spending next year," he said.
Under good risk management, the company aims to maintain non-performing credit card loan (NPL) at a satisfactory level next year from 1.17% now, which is below the market NPL rate at around 2.5-2.6%.
Around 70% of its total cardholders have monthly an income above 30,000 baht.