Credit card spending up almost 11% in January-November period

Taipei-Credit card spending during the January- November period of 2019 rose almost 11 percent from a year earlier to hit a new high, according to the Financial Supervisory Commission (FSC).

Data compiled by the FSC, Taiwan's top financial regulator, showed that credit card holders spent NT$2.93 trillion (US$97.34 billion) in the first 11 months of last year, up 10.98 percent from a year earlier.

The January-November figure surpassed the aggregate amount of NT$2.88 trillion posted for the whole of 2018, according to the data.

The FSC said the increase in credit card spending came after more and more consumers preferred non-cash payments over cash and that credit cards simply provided a more convenient payment method at a time when the banking industry has strengthened transaction security.

In addition, the FSC said, credit card issuers launched promotional campaigns to attract consumers to credit card spending such as cash rebates or purchase discounts, while third-party payment or e-payment gained popularity, which further boosted credit card spending.

Even some government agencies, the FSC said, now accept credit card payments.

The FSC said the commission is expected to report that credit card spending for the whole of 2019 could hit a new high of more than NT$3 trillion.

In November alone, however, credit card spending fell 7 percent from a year earlier to NT$261.6 billion, the data showed.

According to the FSC, as of November, a total of 47.09 million credit cards issued by 33 banks were circulating in Taiwan, up 0.92 percent from a month earlier and also up 7.36 percent from a year earlier, the FSC said.

Despite the increase in credit card spending, the FSC said, the non-performing ratio of the 33 banks in terms of credit card spending stood at 0.20 percent on average as of the end of the month, down 0.01 percentage points from the end of October.

Meanwhile, the bad loan ratio also fell 0.03 percentage points in November from a year earlier, the FSC said.

Source: Focus Taiwan News Channel