KUALA LUMPUR: Malayan Banking Bhd (Maybank) expects RM160 million worth of consumers spending this year for its newly launched American Express Cash Back Gold Credit Card.
Maybank head of community financial services, Malaysia Datuk Hamirullah Boorhan said the bank credit card segment has grown by 6.2 per cent year-on-year (YoY) compared to the sector's overall growth registered at 5.0 per cent YoY.
"Our credit card billings have an average of RM3 billion monthly, driven by a total of 1.9 million customers in the credit card segment," he said at a press conference after the unveiling the new credit card in Kuala Lumpur today.
He said Maybank is the leading credit card issuer in Malaysia with more than 20 per cent market share as at July 2017.
The American Express Cash Back Gold Credit Card offers a cash back of 1 per cent for all local spend and 1.5 per cent cash rebate for overseas spend, with no minimum spend required on the amount of cash back offered.
"For an introductory period until February 28, 2018, new cardmembers will also enjoy a special welcome bonus of additional 5 per cent cash back for up to RM100 in the first three months of enrolment," he said.
Hamirullah said the introduction of the bank's new credit card aims to meet the needs of a market segment that prefers upfront cash savings.
"Our various customers segments have different preferences with some finding cash back incentives more suited to their lifestyle as it offers them the ability to save even more from their day-to-day spend," he said.
Hamirullah stated the product offers a new value proposition to such cardmembers and the unlimited cash back product will create a significant excitement in the market.
"We target at least 20,000 new members for this card within the first year. The new card will not only strengthen our leadership in the cards business.
"It also expands our comprehensive range of card products to cater to an even wider range of customer segments," he said.
Hamirullah said the card's target market also include the emerging affluent with an average annual income of RM30,000.
"In terms of credit commission, for every ringgit spent, we will garner a commission between 0.5 per cent and 1 per cent for every credit card transaction," he said.
Meanwhile, vice president, partner card services, Asia, American Express International Inc, Sanjiv Malhotra said the company enjoys a global reputation of offering card members the services and experiences they are looking for.
"We see the trend of consumers in Malaysia are looking forward to rewarding products and services, which are simple to understand and easy to use," he said.
The bank is currently offer comprehensive range of card products comprising pre-paid, debit, credit and charge cards, numbering over 16 million in Malaysia.