Credit Card Spending Remains Steady Amid Economic Uncertainty
Credit card spending in the final quarter of the year is expected to remain subdued, reflecting the broader economic conditions. Despite the government’s implementation of various stimulus measures, the impact on consumer behavior has yet to be fully realized.
Yuttachai Teyarachakul, managing director and head of personal financial services at UOB Thailand, highlighted that while several initiatives were introduced to boost domestic consumption, including the “Khon La Khrueng Plus” co-payment programme, it is still too early to determine their effect on spending in the fourth quarter.
He noted that credit card spending through UOB Thailand remained stable during the first nine months of the year compared to the end of last year. The bank anticipates that this trend will continue into the final quarter of 2025.
Overall, credit card spending grew by 2-3% for the first nine months of this year, according to Mr. Yuttachai. He emphasized that the growth was particularly noticeable among upper-income customers, who spent more on dining, travel, and luxury products.
UOB Thailand has placed a strong focus on maintaining asset quality this year, which led to a slowdown in new card acquisitions due to heightened economic risks. This cautious approach has helped the bank keep its credit card non-performing loan ratio below the market average of around 2%.
Consumer Behavior Shifts in the Digital Age
In a related development, the UOB Asean Consumer Sentiment Study 2025 revealed interesting trends in consumer behavior. According to the study, 45% of consumers made more purchases via social media platforms over the past 12 months. However, 47% of respondents reported taking longer to make purchasing decisions.
Many users now participate in live-streams for entertainment, product comparison, and price evaluation. While this trend may delay purchases, it strengthens brand engagement and awareness, according to the survey.
Bank Expectations and Projections
Atis Ruchirawat, head of Krungsri Consumer, an unsecured lending unit under Krungsri (Bank of Ayudhya), shared similar insights. He stated that the bank expects continued contraction in both credit card and personal loan portfolios this year, following a similar trend during the first nine months.
However, Krungsri projects modest growth in credit card spending. During the first nine months of 2025, total spending via Krungsri credit cards reached 286 billion baht, representing a 1% year-on-year increase.
The bank expects total card spending to reach 400 billion baht by year-end, indicating a growth of around 2%. Mr. Ruchirawat also pointed out that the government’s personal income tax deduction scheme for domestic tourism should stimulate spending in tourism-related sectors, particularly restaurants.
Key Takeaways
- Stable Spending: Credit card spending remains steady despite economic challenges.
- Upper-Income Growth: Upper-income customers are driving growth in specific categories like dining and luxury goods.
- Asset Quality Focus: Banks are prioritizing asset quality, leading to slower card acquisitions.
- Social Media Influence: More consumers are using social media for shopping, though decision-making times have increased.
- Tourism Incentives: Government schemes may boost spending in the tourism sector.