The increase in card expenditures in the pandemic has made consumers conscious in choosing a credit card. Depending on the data of Accountkurdu, the amount of dues ranging from 50 TL to 700 TL has led consumers to no-fee credit cards, although they offer limited installment options. No-fee card requests made through credit comparison platforms have started to rise. In response to the increasing demand, banks have started to add installment and point shopping options to their no-fee credit card products.
Changing shopping habits during the pandemic increased card spending. According to the Card Payments in Turkey 2021 research, which was conducted using the data of the Interbank Card Center (BKM) and the World Bank, card payments, which have grown exponentially every year, increased by approximately 2021% in 50 compared to the previous year and reached 1 trillion 712 billion TL. The total number of credit cards in Turkey reached 84 million, while the number of debit cards reached 207 million. The number of contactless transactions, which was 2020 billion in 1,7, increased by 2021% in 114 to 3,7 billion. It is predicted that the growth trend will continue to increase, and card expenditures will reach 2023 trillion TL in 2,5.
Stating that the increase in card expenditures made consumers conscious of their credit card choices, the Co-Founder of Accountkurdu Onur Tekinturhan said, “Consumers have turned to no-fee credit cards despite limited installment options in this period. Banks have also started to diversify their no-fee credit card products. For consumers who want to stretch their legs according to their comforter, banks have added shopping and installment options to their no-fee credit cards. In 2021, there was a 71% increase in credit card applications made through our platform. However, only about 10% of the applications are approved. That's why users apply for multiple cards at once.” said.
Increase in subscription amounts triggers demand
Reminding that credit card fees were brought to a legal basis with the regulation published by the BRSA in 2014, Onur Tekinturhan said, “According to the regulation, banks can charge fees defined as dues or annual membership fees for their cards. Consumers can also apply for a free credit card of the same bank. The pandemic has increased consumers' awareness of this issue. Those who continue to pay their dues or choose to cancel their card because they do not know their rights, prefer no-fee credit cards. In 2022, fees for other credit cards, excluding student cards, vary between approximately 45 TL and 680 TL per year, depending on the bank and the features offered. These numbers trigger the demand for a no-fee credit card.” he stated.
Contactless payments will continue to rise
Noting that the use of cash has decreased with the change in shopping habits, and the contactless payment infrastructure has become widespread, Mr. Onur Tekinturhan, Co-Founder of Accountkurdu, said, “The BDDK has updated the contactless transaction limit of 350 TL in card payments to 1 TL, effective as of February 500, within the scope of epidemic measures. It is possible to say that the rise in contactless payments will continue in 2022 with the effect of hygiene sensitivity brought by the pandemic. It is also among the expectations for businesses to prefer card-based deferred payments instead of traditional methods such as cash, check and promissory note.
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