Our Head of APAC, Damien Gough, spoke to Payments, Cards and Mobile about PromptPay, Thailand’s government backed instant payment system.
As the article reports, PromptPay plays a significant role in making financial services more accessible, affordable, and convenient. However, addressing digital literacy gaps, expanding merchant acceptance, and upholding data security are essential for its continued success and wider impact.
Damien stated: “PromptPay has been a great tool for financial inclusion. The pricing is competitive, and the addition of social payments has enhanced its popularity.”
There are a number of important learnings about this growing payment option in Thailand that have broader applicability.
Growth of Digital Wallets in Thailand
- Significant Growth of Digital Wallets: Usage jumped from 2% in 2017 to 23% in 2022, according to Statista.
- Popular Services digital wallets used (in addition to PromptPay): TrueMoney, Rabbit LINE Pay, and AirPay are widely used.
- Multifaceted Growth Factors: Convenience, government initiatives, personal preferences, and infrastructure all play a role.
- Reasons for Growth: Convenience, rewards programs, government initiatives, and online spending.
- Regional Differences: Urban areas generally see higher digital wallet adoption.
- Challenges Remain: Ensuring digital literacy, addressing privacy concerns, and expanding infrastructure are crucial for further growth.
Cash Still Holds Strong
- Simultaneous Payments Growth: Both digital wallets and cash are growing, albeit at different rates.
- Reasons for Cash Preference: Familiarity, wider acceptance in some areas, perceived privacy, and feeling of control over spending.
- Where Cash Wins: Cash is more popular in rural areas and for smaller transactions.
Recent Developments
- Government Push: A recent initiative plans to distribute ~$14 billion through digital wallets, potentially boosting adoption.
Digital wallets are making inroads in Thailand, but cash remains a major player. The future likely holds a coexistence of both methods, with their usage varying based on individual preferences, location, and transaction type.
Read the full article on the Payments, Cards & Mobile website.
