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Credit-card companies turn focus to high-end clients

Credit cards companies are shifting their focus to clients at the top of the wealth pyramid as the low-end of the market suffers a slowdown due to the recent rise in bad debt among card users.

MasterCard International Taiwan has recently announced various privileges for its World MasterCard holders, including discounted rates for visits to designated golf clubs, spas and hot springs bathhouses.

Visa International Taiwan provides its Visa Infinite card holders services such as ticket bookings for performances worldwide and participation in private clubs by relatives or friends.

Statistics show that approximately 200,000 people in Taiwan have a net worth of more than US$300,000. Local banks have over the past two years targeted wealth management clients with credit cards designed for upscale customers, such as the Visa Infinite card and the World MasterCard, which have no pre-set spending limit.

At present, there are only about 20,000 Visa Infinite card holders and around 5,000 World MasterCard holders in Taiwan.

Despite their small number, the spending power of these customers is exceptionally strong, with the spending by Visa Infinite card holders amounting to NT$10 billion (US$307.69 million) as of the end of last year, up 80 percent from the year earlier.

Visa Infinite card holders in Taiwan spend an average of NT$500,000 per year, compared with an average of NT$60,000 per year by Visa Platinum card holders, according to Visa International Taiwan.

Spending by World MasterCard holders, meanwhile, expanded by 200 percent last year over the previous year, with each card holder spending 12.7 times more than each Platinum MasterCard holder, according to data from MasterCard International.

Five banks issue Visa Infinite cards -- Taishin Bank (台新銀行), Chinatrust Commercial Bank (中國信託銀行), Union Bank of Taiwan (聯邦銀行), Shin Kong Commercial Bank (新光銀行) and Far Eastern International Bank (遠東銀行).

World MasterCards are issued by Cathay United Bank (國泰世華銀行), Far Eastern International Bank and Chinatrust Commercial Bank.
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