The Bank of Thailand is actively expanding the digital payments ecosystem to make it more accessible for both Thai citizens and foreigners, according to a statement from an official at the institution.
Key Takeaways
- The BOT is collaborating with various countries, including China, to establish partnerships based on QR code payment systems.
- Thailand’s PromptPay is already being used in Cambodia, Hong Kong, Indonesia, Japan, Malaysia, Laos, Singapore, and Vietnam.
- The global transaction value in the digital payments market in the SEA region is projected to reach US$287.20 billion during this year
Pariwat Kanithasen, BOT deputy director of the payments and fintech department, spoke about the expansion of Thailand’s digital payment ecosystem during the seminar titled “Cross-Border Payment, Now and Beyond.” It was part of the 24th Money Expo Bangkok 2024.
The government official explained that the institution is working to expand the digital payments industry in the country, adding that cross-border payments were part of the BOT’s efforts to improve the country’s digital finance ecosystem.
Thailand’s PromptPay is a mobile banking and payment system that allows users to transfer money using their mobile phone number or National ID number. It was launched in 2017 and has since gained popularity in Thailand and beyond.
PromptPay has also been adopted in neighboring countries such as Cambodia, Hong Kong, Indonesia, Japan, Malaysia, Laos, Singapore, and Vietnam, allowing for cross-border transactions and financial integration within the region. The system has contributed to greater financial inclusion and convenience for users, as well as facilitating e-commerce and digital payments across borders.
The government institution is working with other regions to create QR code-based payment links, allowing tourists and residents to use their mobile banking apps to scan QR codes and pay directly at cross-border merchants.
Kanithasen added that they are in discussions with China to expand the presence of cross-border digital payments.
The SEA region leads digital payments
Over the last few years, the virtual payments industry has grown drastically. Statista reported that the total transaction value in the digital payments market in the region is projected to reach US$287.20 billion during this year. The total transaction value is expected to show an annual growth rate (CAGR 2024-2028) of 9.77 percent, resulting in a projected total amount of US$417.00 billion by 2028.
The SEA region is leading the digital payments industry internationally. According to data provided by Statista, the Asian region has been one of the regions with the highest number of virtual payment transactions. There are various business models within the digital payments industry such as:
Mobile wallets
Virtual wallets have gained significant ground in the payment ecosystem, being one of the most used mechanisms internationally.
According to Investopedia, a mobile wallet can be defined as “a mobile wallet that stores credit or debit card information on a mobile device, such as a smartphone, tablet, or smartwatch. Mobile wallets are a convenient way for you to buy things online or in stores that are set up to take payments through the wallet. They may also be more secure than physical payment cards because of the technology they use to protect your account information.”
Virtual credit cards
Virtual credit cards like PayWithus have quickly positioned themselves as a great option, allowing millions of people to make payments quickly, efficiently, and effectively, integrating various payment methods such as cryptocurrencies.
