Credit card spending falls 12% in Jan-Feb 2015

With household incomes dwindling and banks still not fully injecting money into the economy, consumers seem to be holding back on their spending habits, with credit card payments recording a cumulative 12% fall in the first two months of 2015.

According to the JCC Payment Systems card clearing monopoly, credit card use dropped 6% in February year-on-year, to €164.6 million, while the same year-on-year decrease was also recorded in January.

JCC, wholly owned by the local banks, said that card transactions rose at supermarkets, but were down in the government sector, DIY and household stores, and fuel purchases.

JCC said the decrease of transactions in government was related to the extension of the deadline for vehicle tax renewal. An increase in this category is expected in March, it said, as car owners rush to renew their road taxes and avoid a hefty €85 fine from the police.

Suggesting that Cypriots had not changed their spending habits on their travels, JCC data showed that transactions with local cards abroad remained unchanged in February from the year-earlier level of €86.7 million.

Source: Financial Mirror