The government has pushed banks to cut rates on credit card balances.
This chart from GlobalData shows that card payments in Taiwan are set to grow 5.6% in 2020 as the pandemic has spurred the adoption of digital payments.
The industry is expected to reach $200.2b (TW$6t) in 2024 with a CAGR of 7.6%.
Even though Taiwan is amongst the countries least affected by COVID-19, overall consumer spending shrank as people are spending warily. However, with the government floating comprehensive stimulus measures, consumer spending is set to rise, in turn pushing for further growth of card payments, analyst Sowmya Kulkani said.
The government has urged banks to offer deferrals on loan installments and reduce interest rates. In response, major banks including Citibank, HSBC, Hua Nan Bank, and Land Bank of Taiwan have cut interest rates on credit card balances, with other lenders also offering deferrals on credit card bill payments.
The government also launched a "triple stimulus voucher" program offering cash back to customers on credit card purchases. Individuals from 38 banks can register for this program.
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