Thailand economy

Coronavirus pandemic speeds up cashless transactions in Thailand

Thailand is emerging as a society that uses less cash as consumers use digital networks and devices, with money transfer stimulus programs and the pandemic accelerating cashless transactions with PromptPay as the he whole world economy is moving towards a cashless world.

Registration on PromptPay, the money transfer platform initiated by the government as part of the national electronic payment system launched in early 2017, rose to 55.6 million at the end of September, an increase of 11.4% against 49.9 million at the end of 2019, according to Bank of Thailand. The data.

In the first nine months of 2020, PromptPay transactions reached $ 3.6 billion, amounting to 14.6 trillion baht, compared to 2.6 billion transactions worth 13.2 trillion baht. in 2019.

On average, transactions per day stood at 15.6 million with a total amount of 61.3 billion baht in September, compared to 9.6 million transactions worth 47.8 billion in 2019.

Peak transaction volume was recorded at 25.8 million with a value of 145 billion baht in September, compared to the corresponding period in 2019 when peak transaction volume was recorded at 12.7 million with a worth 77.8 billion baht.

Siritida Panomwon Na Ayudhya, deputy governor of payment systems policy and financial technology group at the central bank, said digital payment through PromptPay has increased significantly.

Consumer-to-consumer money transfers

The most popular transactions through PromptPay are consumer-to-consumer money transfers, followed by payments made through a QR code for consumers and merchants. QR code payment for consumer-to-business purchases through PromptPay is on the rise, especially thanks to the government’s co-payment system.

The co-payment system has proven popular with the public, leading to an increase in QR code payments. The co-payment system allows registered people to purchase food, drinks and basic goods from small shops and street vendors, paying through a QR code on the Pao Tang app.

The government subsidizes 50% of the payment, up to 150 baht per day and no more than 3,000 baht from October to December in the first phase. Registrations for the second phase were closed on December 16 due to overwhelming demand.

The second phase program is expected to be implemented between January and March 2021. Patchara Samalapa, co-chairman of Kasikornbank, the leading mobile banking provider with 14 million users, reported total financial transactions through K- Plus, the bank’s mobile banking app, totaled 11.8 billion euros with a value of 11.2 trillion baht in October.

Payment by QR code through PromptPay has contributed to the large volume of transactions in Thailand, as this payment method is expected to continue to grow for the sake of convenience, Patchara said. The pandemic has also contributed to the huge leap forward in digital payment as more people shop online. Read more..

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