Affluant Thais lift Visa growth

September 12, 2017 by  
Filed under News, Thailand

BANGKOK, 12 September 2017 – Spending growth among affluent Visa cardholders in Thailand tripled the growth of overall Visa’s business, defying economic slowdown and driven by increased travel-related expenditure, according to Visa.

Payment volume in the affluent segment grew at a rate of 30% year-on-year for the first half of financial year 2017, higher than the overall cardholder growth of 11 per cent.[1]

Overall credit card spending has stabilised despite an uncertain global economic outlook, which affected the export-reliant Thai economy.

Suripong Tantiyanon – Visa Thailand

Data from the Bank of Thailand indicated that payment volume from credit card spending over the same period totalled THB160 billion, an increase of 5.9% from October a year earlier.[2]

”Visa affluent cardholders are a discerning group, often looking for one-of-a-kind, world-class experiences. In an increasingly hyper-connected world, this means providing the jet-setting group with the kind of offers that would match what their counterparts in metropolises like London or Tokyo would enjoy,” said, Visa country manager Thailand, Suripong Tantiyanon.

The number of High Net Worth Individuals (HNWI) in Thailand grew by 5.5% p to 96,000 in 2015, with total wealth reaching USD 484 billion or about THB 16 trillion.[3]

As income grows, to cater to the exacting expectation of this group as well as the emerging affluent, Visa constantly refreshes its premium offers, curating indulgences designed to enhance an exclusive lifestyle with no boundaries.[4]

Travel remains a key driver of spending growth among Visa Infinite cardholders, used primarily by affluent customers. Though accounting for only 1% of total Visa cards in Thailand, Visa Infinite constituted 8% of total payment volume and registered a robust growth of 41 percent in cross-border spending alone.

“Competition is fierce for the affluent segment, with five banks issuing Visa Infinite and seven issuing Visa Signature cards, each vying to exceed the others in rewards and privileges. Such relentless pursuit will surely drive quality upward and we believe quality will always find a customer,” said  Suripong.

[1] VisaNet: H1 FY2017, YOY

[2] Bank of Thailand, Value of Usage of Plastic Cards for Payment (excluding ATM and Debit card): Oct 2016 – Mar 2017

[3] “World Wealth Report”: Capgemini Financial Services Analysis, 2016. See: https://www.worldwealthreport.com/reports/population/asia_pacific/thailand

[4] Banks which issue Visa Infinite cards may offer additional benefits and privileges with applicable terms and conditions. Visa makes no warranties and guarantees on the terms of service, coverage and applicability of benefits provided by card issuers.

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