Thai cash handout boosts Krungthai Card despite weaker card spending

Management is confident that customers will be able to make minimum payments.

Krungthai Card (KTC) expects to benefit from an upcoming cash handout stimulus of the Thai government although weaker credit spending is seen.

The cash handout stimulus will commence in June 2026 and will be done via the Paotang application, Krungthai Card’s digital financial super-app.

“Meanwhile, we might see weaker credit card spending on food delivery, but the ultimate result should be positive for KTC as clients will have more wealth and better capacity to repay their debts,” said Thanawat Thangchadakorn, analyst at UOB Kay Hian (UOBKH).

KTC’s management expressed confidence that borrowers will be able to make minimum payments for credit card spending, Thangchadakorn said. The minimum payment on credit cards is 8%, extended through December 2026.

“In addition, these borrowers are continuing to service their debt amidst many uncertainties,” Thangchadakorn said.

To support growth, KTC is targeting non-loan related income, such as insurance brokerage, which began in November 2025.

“In addition, KTC expects to be granted a digital insurance licence that allows KTC to sell insurance via online channels, instead of the existing licence that only allows offline sales,” Thangchadakorn said.