KTC aims to get more credit card customers in 14 key provinces

The 14 provinces are Chiang Mai, Chiang Rai, Lampang, Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani, Chon Buri, Rayong, Songkhla, Phuket, Surat Thani, Prachuap Kiri Khan and Phetchaburi. KTC grouped these provinces as its main targets based on income, population and the number of facilities such as grocery stores, hotels and airports. 

 

Higher spending 

Suwat Tepprechasakul, vice president of KTC, said credit-card spending per head in those 14 provinces was Bt7,000, against Bt6,300 in all 77 provinces.

The spending behaviour of people in the 14 provinces is similar to those in Bangkok, as they use credit cards for fuel and in department stores, especially store chains that have expanded upcountry from Bangkok.

He said Central Department Store would be a key partner of KTC in tapping the spending of people in the target provinces. He said credit-card possession in Bangkok had matured, with each resident holding at least three cards on average, unlike most provincial markets, where the penetration is small. The government plans to raise the salary base of civil servants, which will also encourage the acquisition of credit cards.

Between now and next year, the company targets issuing 400,000 new credit cards, of which 40 per cent will be in provincial markets – but half of the upcountry issues will be in these 14 provinces, he said.

Spending with KTC credit cards in the 14 provinces last year amounted to Bt25 billion, or 20 per cent of the total.

He said the company had seen a rise in spending on home improvements in those provinces as well.

However, the challenge for KTC is the fact that merchants upcountry tend to be scattered widely, unlike in Bangkok, which has several landmarks to attract shoppers.