The value of credit card transactions declined to NT$206.2 billion (US$6.89 billion) in April, down 20 percent from a year earlier and the biggest drop in 11 years, according to data released Thursday by the Financial Supervisory Commission (FSC).
On a month-on-month basis, the value of credit card transactions in April decreased by NT$22 billion, or 9.64 percent from the previous month, the FSC said.
The dramatic fall in credit card spending can be attributed largely to significant weakness in domestic demand.
Social distancing might also be responsible for the fall, said a banking industry analyst.
Against this backdrop, the government’s new “Triple Stimulus Voucher” program set to launch on July 15 and the relaxation of COVID-19 control measures are expected to boost domestic travel and consumption as well as credit card transactions in the second half of this year.
As of the end of April, the number of valid credit cards circulating on the domestic market was 32.13 million, the FSC said.