Spending on Amex cards falls marginally to 25% Mumbai, Nov 7 (PTI) Premium credit card issuerAmerican Express is witnessing a marginal slip in spendinggrowth in the domestic market, but is not excessively worriedabout the same, a top executive has said.
Spending growth rate has slowed down to 25 percent asagainst 27-28 percent earlier, which is in sync with thebroader industry trend, its country chief executive ManojAdlakha told PTI on Thursday.
The slowdown reflects the deepening crisis in theeconomy, driven primarily by falling consumption demand. Thefirst quarter growth printed in at a six-year low of 5 percentand nobody is expecting higher numbers in the second quarter.
The government has taken a host of measures to drive upconsumption but without with much success.
'When I look at the industry, it was growing at 27-28percent, and is still growing at about 25 percent. The 200 bpsdip is due to various factors,' Adlakha said, adding thenumbers reflect the overall industry. Another factor is thehigh base effect last year, he noted.
Without offering the absolute numbers, he claimed thatAmex has 'millions' of customers here and more than a third ofthem (37 percent) are millennials.
Welcoming digital payment acceptance infrastructureset up by the government as a huge runway for growth, he saidsounded bullish about growth going forward pointing to themore than doubling of PoS terminals to 3.5 million in the lastthree years and the faster penetration of QR codes which hastouched 6.5 million since the note-ban.
'With so much of headroom to grow, I don't see thecurrent slowdown is impacting us,' he said.
Amex has also done a survey of spends in the country,which reveals that luxury buyers are preferring to spend moreabroad (which has grown by 30 percent) rather than spending inthe country as the growth rate here has been only 13 percent.
Adlakha said it will be difficult to point out tospecific reasons why this is happening, but said it could bebecause of the growing affluence. PTI AABEN BEN