SINGAPORE – Despite rising inflation and slower growth in 2022, cardholders continued to splurge on discretionary purchases such as bubble tea, online gaming and travel, bank data showed.
The data also revealed a jump in credit card debt levels throughout the year to its highest since before the pandemic, although industry insiders said this appears to be under control for now.
Data from UOB Bank, which was based on spending patterns and transaction volumes on its credit and debit cards between January and November this year, showed that cardholders spent the most on bubble tea compared with other beverages. For example, the total amount spent on bubble tea was almost triple that of coconut shakes, which is also a popular beverage among consumers.
UOB’s head of group personal financial services Ms Jacquelyn Tan, said that every hour, UOB customers drank about 100 cups of bubble tea compared with 38 cups of coconut shakes in the same period. That works out to approximately 1.7 cups of bubble tea per minute, UOB added.
The bank declined to provide absolute figures on transactions and volumes and spending figures.
The other high spend category was online gaming, where the amount spent grew by almost 25 per cent from January to November. The average spend per transaction rose 17 per cent during the period compared with the same period in 2021, UOB said.
Communications manager Kelly Chiew, 29, is one of those who spends quite a bit on bubble tea and gaming.
Ms Chiew told The Straits Times that she spends around $50 or more every month on bubble tea. She also purchased a Sony PlayStation 5 and new games for the console recently.
Ms Chiew, who is expecting her first child soon, said the additional spending takes her monthly expenses up to $1,800 per month on average.
Another big spending category for cardholders is travel – South Korea was the top destination for UOB customers, followed by Australia and Japan, said UOB’s Ms Tan.
Trust Bank Singapore, a digital banking venture between Standard Chartered and FairPrice Group which launched on Sept 1, is seeing a similar trend. The bank said its customers travelled to 102 countries, with Malaysia being the most popular destination and Argentina being the farthest from home.
Indeed, Singaporeans were bitten by the travel bug after being confined at home for two years.
As borders reopened, some like business owner Mr Tay, 37, travelled round the world with his family, from Bangkok and Perth and to Norway and Switzerland. Mr Tay has already planned and budgeted for the family’s holidays to South Korea and Japan in March and December 2023.
Lab technician Mr Goh, 31, also spent quite a bit on a trip to South Korea this year with his wife and daughter.
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