How important are local payments in Thailand to increase conversions?

introductory

In today's rapidly growing cross-border e-commerce and online business, the payment experience has a direct impact on consumers' purchasing decisions. For businesses entering the Thai market, it is crucial to understand and integrate local payment methods. Data shows that more than 70% of Thai consumers prefer local payment tools over international credit cards. In this article, we'll take a deeper look at how local payments in Thailand can significantly increase conversion rates and provide suggestions for optimisation.

Why do Thai consumers prefer local payments?

1. Low penetration of credit cards

Credit card penetration in Thailand is only about 30%, much lower than in Europe and the US (60%-80%). Most consumers rely on bank transfers, e-wallets and cash top-ups for online transactions.

2. Factors of trust and habit

Local consumers are more familiar with local brands such as PromptPay, TrueMoney Wallet and Rabbit Line Pay. These methods are easy to use and in line with daily spending habits, which effectively reduces the rate of shopping cart abandonment.

3. Financial regulation and security considerations

Some users are sceptical about the safety of funds in cross-border payments, while local channels regulated by the Bank of Thailand (e.g. SCB Easy) offer a higher level of trust.

Analysis of Mainstream Thai Local Payment Methods

Source: Nielsen Southeast Asia Digital Payments Report 2023

How to boost conversions with localised payments?

(1) Reduced friction in closing the accounts

• ✅Support PromptPay to shorten the payment process to less than 10 seconds.
• ❌ Relying only on Visa/MasterCard may result in the loss of users of 20%-30%.

(2) Provision of instalment options

0% interest instalments from organisations such as Krungsri Bank are key enablers for high-end products such as electronics.

(3) O2O Hybrid Solutions

7-Eleven convenience store cash collection reaches the unbanked - this is particularly effective for travel booking platforms.

Success Story: Lazada Thailand's Strategic Realignment

After accessing PromptPay in 2022:

• ⬆️ Mobile Conversion Rate Increase 27%
• ⬇️COD (cash on delivery) ratio reduced from 40% to 22%
• 📈 Passenger unit price growth of 18% (due to increased use of instalment feature)

Recommendations for technical realisation

1. API interfacing preference is given to aggregation platforms like Omise or 2C2P that support multiple channels.
2. UI/UX optimisation: highlighting the "most popular" local options at the checkout.
3. Fallback mechanism: when a channel fails to automatically switch to alternative solutions to avoid losing orders.

[SEO Keyword Layout]

Core words:Thailand eWallet PromptPay Advantage Cross-border collection programme
Long-tail words:Why Southeast Asian users don't use credit cards How to Increase Sales on Shopify Thailand

[Conclusion]

Merchants who ignore native payments could lose over 50% potential orders. By conducting in-depth research on Thai users' financial behaviour and flexibly combining QR code/Internet banking/eWallet, businesses can gain a decisive advantage over the competition. Take action now to assess whether your current system meets these needs!

Advanced Strategies for Optimising Local Payments in Thailand

1. Data-driven ranking of payment methods

There are differences in the payment methods preferred by different user groups:

• Generation Z (18-24 years old): More reliance on socially connected wallets like Rabbit Line Pay
• Urban white-collar (25-40 years old): High-frequency use of PromptPay scanning and credit card instalments
• Residents of second- and third-tier cities: Still mainly 7-Eleven cash top-ups

It is recommended to dynamically adjust the order of cashier displays through A/B testing. For example, fashion categories prioritise the display of Line Pay, while home appliances highlight the 6-period interest-free option.

2. Holiday marketing combined with payment incentives

Special play cases for important shopping nodes in Thailand (e.g. Double 11, Songkran Water Festival):
✔️ TrueMoney Wallet's 50 off over 500 baht campaign boosts Checkout conversions by 40%
✔️ In conjunction with Lazada's "0 fee instalment month" campaign, GMV of the major appliances category grew by 210%

3. Balancing act between anti-fraud and local payments

Note to self:
⚠️ PromptPay Instant Deposit feature increases the risk of refund disputes → suggest setting a single transaction limit and strengthening KYC verification
✅ SCB Easy's secondary password verification reduces theft complaints by 67% (Source: Bangkok Bank 2023 Risk Control Report)

[Mobile-specific optimisation]

Thailand's smartphone penetration is a whopping 95%, but there are still unique pain points:
📱Screen adaptation issues cause 15% payment failures from misaligned buttons (especially TrueMoney APP jump scenarios)
💡 Solution:
- Individually designed thumb hot zone operating flow
- Add sliding OTP input component instead of keyboard ejection

[Emerging trend - the explosion of BNPL]

Thailand BNPL Market Size to Grow 300% Y-o-Y by 2023, Key Players:
🔹 Atome (3 periods of interest free on the main beauty category)
🔹 GrabPayLater (No. 1 market share in the restaurant takeaway scenario)
Operational Recommendations:
- BNPL button colours need to be in high contrasting shades (e.g. white on orange background click through rate increase 22%)
- Embed the instalment calculator tool directly on the product details page

[Guide to selecting enterprise-class solutions]

Note: For large B2B transactions, it is recommended that Krungthai Bank's MEF rate be negotiated separately.

[Ultimate checklist]

□ Does it cover the top 3 e-wallets + at least one direct bank connection
□ All error messages are available in Thai
□COD orders have been GPS tracked
□Tested the scenario of receiving OTP with SIM card bound number

[SEO Extended Keywords]
How to shop online for the unbanked in Bangkok Shopee Thailand Payment Failure Solution Must-have Thai finance licences for cross-border sellers

Simply complete these key steps and your conversion rate curve will achieve a steep climb in the next quarter! Need channel-specific alignment documentation? Feel free to leave a request in the comments section.