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Low income earners are major credit card spenders in Taiwan

2017/09/23 16:33:19

Taipei, Sept. 23 (CNA) Low income earners have been Taiwan's major credit card spenders over the past two years, with those earning less than NT$750,000 (US$24,824) per annum accounting for a majority of total credit card spending, the National Credit Card Center said Saturday.

The center said that from May 2015 to April 2017, credit card spending by consumers who made NT$500,000 or less a year was NT$1.71 trillion and by consumers who made NT$500,000-NT$750,000 it was NT$890 billion.

With NT$2.6 trillion in credit card spending over the two year period, the two income groups accounted for about 65 percent of Taiwan's total credit card spending, data compiled by the center showed.

Those with annual income of NT$1.75 million to NT$2 million spent only NT$50 billion on credit cards, the lowest amount of all income brackets, the center said. The total number of transactions by the group was 15 million, compared with 880 million by consumers who earned less than 500,000 a year, the center added.

However, in terms of single transactions, consumers who earned NT$2 million or more a year spent an average of NT$6,498 per purchase, the highest among all income groups, the center said.

Consumers with annual income of NT$1.75 million to NT$2 million spent an average of about NT$3,949 per purchase, while consumers with annual income of less than NT$500,000 came last with an average per purchase of NT$2,134, the center added.

The center said that the big earners had more disposable income on hand so they tend to buy high-priced items or chase expensive services.

Although earners with annual income of less than NT$500,000 accumulated the highest total credit card spending, their average single transaction purchases lagged far behind, the center said.

According to the center, consumers ages 30-50 were the major credit card spenders in Taiwan, while those aged 50 and older used credit cards less frequently, although their annual income was generally higher.

(By Tsai Yi-chu and Frances Huang)