Kiasunomics

Credit Cards

NUS Business School Season 4 Episode 6

Picking off a U.S. study on a credit card promotional campaign where the bank offered 1% cashback, Professor Ang Swee Hoon looks at how it increased user spending by 32% and even incurred greater debt by not making prompt repayments. She also touches on the impact of the campaign on “revolver users” and inactive, no-debt cardholders.