What is Thai Payments? A full explanation

introductory

With the rapid development of global e-commerce and cross-border trade, payment methods are evolving. As one of the important economies in Southeast Asia, Thailand's payment market has unique characteristics and development trends. This article will provide a comprehensive analysis of the current status of payments in Thailand, mainstream payment methods, development trends, and how to adapt to the Thai payment environment to help businesses and individuals better understand and utilise Thailand's financial ecosystem.

1. Background and market overview of payments in Thailand

(1) Thailand's Economic and Digital Development

In recent years, the Thai government has been actively promoting the "Digital Thailand" strategy (Thailand 4.0), which aims to enhance the country's digital economy. Based on data for 2023:

• Internet penetration is over 80%, and the proportion of smartphone users is as high as 90%.
• E-payment transactions are growing year on year and are expected to exceed $100 billion by 2025.

(2) Regulatory environment

Thailand's financial system is jointly regulated by the Central Bank (Bank of Thailand, BOT) and the Securities and Exchange Commission (SEC). Key regulations include:

• The Electronic Transactions Act (ETA) regulates the security of online transactions.
• The Anti-Money Laundering Act (AML) ensures compliance with the movement of funds.

2. Mainstream local Thai payment methods

(1) PromptPay - "instant money transfer" system

PromptPay is a real-time clearing system launched by the BOT in 2017 and features include:

• Bind mobile phone number or ID card number to receive/payment .
• Zero or very low fees The following are some of the most common types of transactions that can be carried out in small amounts and with high frequency.
• Support cross-bank transfer and QR code payment function .

Scope of application: e-commerce shopping, offline retail, P2P transfer and other scenes .

(2) TrueMoney Wallet - "The King of Mobile Wallets"

TrueMoney is an e-wallet brand invested by Ant Group and widely used in Southeast Asia:
✔️ supports online/offline consumption, utility bill payment, phone bill recharge and other functions;
✔️ can be connected to a bank account or recharged in cash;
✔️ cross-border remittance service covers Myanmar, Vietnam and other countries.

Target group: Young consumers and the unbanked.

(3) Rabbit LINE Pay - "Social + Financial Combination"

LINE Pay enters the offline market through partnership with Rabbit Card :
✅ Users can complete P2P transfers via chat software ;)
✅ Offer coupon rebates to stimulate spending.
✅ Coverage of convenience stores (e.g. 7-Eleven), shopping malls and other locations .

Ideal for Gen Z users who like to pay socially .

Other common options::

3. How are international players accessed?

If you are looking to expand your business into the region:

a.) Selection of suitable partners

It is recommended that priority be given to the following institutions.
→ Stripe / PayPal (international card acceptance)
→ Omise / AsiaBill (localisation solutions)

b.) Compliance with local regulatory requirements

The application for the appropriate licence is required e.g.
▸ Money Changer Licence
▸ E-Money Issuer Permit

"In the next five years , QR code scanning could become the most dominant means." - Kasikorn Research Centre report states .

In conclusion, both tourists and merchants need to use a variety of tools in order to efficiently complete the flow of funds.

4. Trends in the Thai payments market

(1) Popularity of QR code payment

In recent years, Thailand has made great efforts to promote QR Code Payment(e.g. "Thai QR Payment"), the advantages of which include:
✅ Cross-bank interoperability: Users can scan the same standard QR code to complete transactions through any bank's app.
✅ Low fees or even free: Lower merchant costs compared to credit cards.
✅ Government promotes a cashless society: BOT plans to achieve 80% electronic payment penetration by 2025.

Applicable scenes: street vendors, night markets, taxis and other small amount of high-frequency trading places.

(2) The Rise of BNPL (Buy Now Pay Later)

Buy Now, Pay Later (BNPL) services are growing rapidly in Thailand, with representative platforms including:

• Atome(3 interest-free instalments)
• GrabPayLater
• Shopee PayLater

Target Users:
👉 Young consumers prefer instalment shopping
👉 E-commerce platforms boost conversions with BNPL

(3) Facilitation of cross-border payments

As trade between China and Thailand deepens, the following methods are becoming increasingly popular:
| | |
|—|—|
|🇨🇳 Alipay/WeChat Pay|cover duty free shops, chain restaurants|
|🌏 DuitNow (Malaysia)|Real-time cross-border money transfers to PromptPay|

5. Essential payment guide for travellers

If you are planning a trip to Thailand:

a.) Cash remains indispensable

Although electronic payments are well developed, cash in Thai baht is still required for the following occasions:
✈️ Street vendors ✈️ Small town traffic ✈️ Temple donations

b.) Recommended Carrying Tools

1. Visa/Mastercard chip card (for large merchants)
2. TrueMoney Card (available for 711 top-ups)

"Taxi drivers in Bangkok may refuse to accept thousand dollar bills" - Lonely Planet warns.

6. Practical advice for enterprises on the ground

For companies wishing to enter the Thai market:

a.) Localised UI design

✔️ supports Thai language interface ✔️ displays PromptPay logo ✔�� Provides customer service phone number (+66)

b.) Compliance Points Memo Sheet

▸ VAT invoice to include company tax code
▸ Refunds must be returned the same way they were made (cash refunds are prohibited)

Typical reference: Lazada Thailand's hybrid payment page design.

7. Future prospects and challenges

▶ Opportunity Direction.

🔹 Financial inclusion penetration in rural areas
🔹 Cryptocurrency Pilot Project (BOT is testing digital baht)

⚠️ Potential risks.

❗ Over-reliance on individual super-APPs may lead to systemic risk
❗ Cyber Fraud Cases Increase 35% Annually (Need to Strengthen KYC Verification)

Latest News: KBank and Huawei collaborate to develop AI anti-fraud system.

[Summary]

From PromptPay to LINE Pay, Thailand's payment ecosystem is both retaining traditional cash habits and quickly embracing innovation. Whether it's a tourist scanning for mango sticky rice or a business receiving payment for a cross-border shipment you need to master these key points.

✓ Priority integration of QR code and e-wallet programmes
✓ Maintain a cash standby ratio of around 30%
✓ Closely monitor the progress of the central bank's digital currency

For implementation-specific advice, please contact a professional organisation for a full copy of the Southeast Asia Payments White Paper!