KTC reports robust growth, launches Thailand’s first digital credit card

KTC, the leading credit card service provider in Thailand, reported a robust growth in its operations for the year 2023. The company revealed a surge in card spending exceeding its initial target by over 10%.

Continuing its growth trajectory into 2024, KTC maintains its previous growth target of 15%. Currently, KTC holds a 12% market share in the total card expenditure of approximately 2.2 trillion baht (US$63 billion). The company’s non-performing loans (NPL) stand at 1.3%, lower than the industry average of around 3%.

Parnnaya Nithananant, KTC’s top executive for credit card marketing, expressed confidence that the Bank of Thailand’s revised minimum repayment rate for credit cards from 5% to 8% would not have a significant impact. This is due to over 70% of KTC cardholders already making full payment of their card balance, while the remaining, even though not paying in full, generally pay more than 5%.

Parnnaya mentioned the easy E-receipt measure, which allows tax deductions on the purchase of goods or services paid for between January 1 and February 15. The amount paid, up to a limit of 50,000 baht (US$1,451), can be deducted. This is expected to stimulate KTC credit card spending in the first two months of the year, growing by 25%, as seen in the previous year during the Shop Dee Mee Kuen campaign, reported KhaoSod.

KTC recently launched the KTC Digital Credit Card, the first of its kind in Thailand. It incorporates advanced security features and elevates the safety of credit card usage, assuaging customer concerns.

The card supports both digital and plastic, numberless card usage, addressing cardholders’ worries about vital card number theft. With features like Digital First and Dynamic CVV, members can opt for a plastic card without a number on the front and a magnetic stripe, eliminating worries about critical data theft.

Application channels

Additionally, KTC has developed DIY credit card application channels through the KTC Mobile app and online platforms. By the end of the year, the company aims to have at least 100,000 KTC Digital Credit Card members, adding to the current 2.62 million KTC cardholders. The target for overall KTC cardholder expansion this year stands at 230,000.

The KTC Digital Credit Card’s three key features are:

1. Digital first: Members can immediately make payments after approval through online channels, including QR Pay scanning and linking the card to various payment systems such as Google Pay or Swatch Pay.
2. Dynamic CVV: The card’s security code changes every time a request is made and can be used within 24 hours of each request, ensuring member confidence when making online payments or linking cards to online stores.
3. Numberless card: A transparent plastic card without a number on the front and without a magnetic stripe enhances security when making payments at general stores, eliminating worries about personal data theft on the card front.

From January 4, members can apply for the KTC Digital Platinum Visa or the KTC Digital Platinum Mastercard.

In related news, as mainstream lenders remain cautious about digital assets, KBank plans to create a digital asset ecosystem.