What is the difference between local vs international payments in Thailand?

There are significant differences between local and international payments in Thailand in a number of dimensions, mainly in terms of application scenarios, technical implementation and user experience. The following is a structured comparative analysis from a professional perspective:

I. Differences in underlying clearing systems

1. Local Payment Networks:

• Based on the Bank of Thailand-led BAHTNET clearing system
• Adoption of PromptPay Instant Settlement Protocol (5 seconds to transfer funds)
• Supports Thai QR standard (compatible with EMVCo QR but requires special configuration)

2. International payment channels:

• The SWIFT messaging system took more than 8 hours on average
• Visa/Mastercard using ISO8583 protocols
• Cross-border remittances rely on the correspondent bank model (often incurring intermediary bank charges)

II. Comparison of compliance requirements

1. Local Payments Regulatory Framework:

• Subject to the Payment Systems Act B.E. 2560
• Single transaction limit 200,000 Baht (approx. 5,700 USD)
• Mandatory SMF certification (Thailand's fintech security standard)

2. Cross-border payment compliance costs:

III. Differences in payment cost structures

1. Local Payment Expense Model

   • Thai interbank transfers: usually 0-5 baht/transaction (approx. $0-0.15)
   • PromptPay Sweep Payment: Merchant rate 0.25%-0.75% (lower than international cards)
   • Government mandatory: fee-free inter-personal transfers ≤ 50,000 baht

2. Cost components of international payments
   | Type of Fee | Typical Rate Range | Description |
   |—————-|——————–|—————————–|
   | Cross Border Transaction Fee | 1%-3% | Visa/MC Base Assessment Fee + Currency Conversion Fee |
   | SWIFT transfer fee | 15-40 per transaction | Includes intermediary bank chargebacks (frequent loss)10-20) |
   | Chargeback Processing Fee | $15-50/trip | Dispute Transaction Management Costs |

IV. Comparison of technical docking complexity

1. Local Payment Integration Features

   • API follows the DPS Standard v2.3 of the Association of Banks of Thailand (ABT)
   • OAuth2 + State Secret Algorithm SM4 Dual Authentication
   • QR code must contain Thai VAT invoice information fields

2. International corridor technical requirements

// Typical Stripe/PayPal cross-border payment call example

stripe.paymentIntents.create({

 currency: 'thb',

 payment_method_types: ['card_present'],

 capture_method: 'automatic' //need to additionally handle 3DS2 validation

});

V. End-user behavioural differences

1. Thailand's indigenous preference data(2023 Central Bank Report):

• e-Wallet usage rate 73% (TrueMoney dominated)
• <30 year old user 86% prefers code scanning over NFC
• Bank Transfer accounts for 61% of e-commerce settlement volume

2.International user pain point research

Top3 Reasons for refusal to pay:

① Currency conversion spread (38%) 

② DCC dynamic exchange rate not shown (29%)

(iii) Local acquirer wind-up blocking (23%)

VI. Comparative table of risk control mechanisms

Recommended implementation strategy:
1. B-side scenario: Priority is given to local acquirers such as SCB/EasyPay, and cross-border channels are used as a fallback solution.
2. C-end products: must implement the "dual-track pricing" function (THB/USD parallel display)
Note: Under Thailand's Exchange Control Act, payments over US$50,000 equivalent require a BOI to be filed.