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Taiwan lagging behind other Asian Tigers in credit card spending

Taiwan lagging behind other Asian Tigers in credit card spending

The annual credit card spending in Taiwan has passed the NT$2 trillion mark but the average annual spending per card is still lower than in Hong Kong, Singapore and South Korea, according to the National Credit Card Center of ROC (Taiwan).

Among the four Asian Tigers, credit card spending in Taiwan averaged US$1,821 (about NT$59,700) per card in 2014, compared with about US$3,000 (about NT$100,000) in the three other economies, the data showed.

This was despite that fact that Taiwan had a higher number of cardholders and credit cards in circulation than in Singapore and Hong Kong, and its credit card spending had shown an average 8 percent annual growth, the center said.

In response, Financial Supervisory Commission Chairman Tseng Ming-chung said Monday the situation was due to the fact that the 2006 debt crisis affected consumption and the policies of Taiwan banks on issuing credit and debit cards.

Meanwhile, a representative of a bank said Taiwan's per capita income is lower than that of Singapore, Hong Kong and South Korea, which means that Taiwanese cardholders have comparatively weak purchasing power, while the rate of credit card usage in those three economies is also higher than in Taiwan. (By Tsai Yi-yu and Evelyn Kao)

Updated : 2021-09-19 13:38 GMT+08:00