Promoting e-Payment : Thailand Experience

For Session II: South East Asia: Promoting Migration to e-Payment

3 December 2018

Mr. Buncha ManoonkunchaiSenior Director, Payment Systems Policy Department

Bank of Thailand

2

Payment Infrastructures

Card-based Payments

Digital Payments

FinTech & Payment Development in Thailand

RTGS cheque clearing NITMX

credit card

debit card ATM

PromptPay QR Code

biometric blockchain

From Cash to Digital

International StandardsEnablers Chip Card Security Cyber Resilience

3

Government Sectors

Plan for Society and Economy

Project 1: PromptPay Payment System

Project 2: Card Expansion

Project 3: e-Tax System

Project 4: Government e-Payment

Project 5: Literacy and Promotion

Project 6: Capital Market Settlement

• Digital economy : Thailand 4.0

- To maximizie the adopting of digital technologies in all socio-economic activities; infrastructure, innovation, data, human capital, and other digital resources.

- To facilitate business to create an ease of doing business and the better value for consumers (ex. convenience, accessibility and reasonable service fees)

Business/ Private Sectors Banking / Non-bank Sectors

• Technology supporting ‘Straight-Through Processing’ transactions

- e-Invoicing/

- e-Payment/ EIPP

- e-Receipt/ e-Tax Invoice

• Payment Systems Roadmap

- Promoting electronic payment transactions

- Retail payment infrasturcture development - Payment Systems Act- International payment (connectivity)

• Financial Sector Master Plan: Phase III (2016-2020)

- Promoting Digitization & Efficiency in banking sector

- e-Procurement

- e-Tracking- e-Inventory/ e-Fulfillment

Led by BOT

Digital

Banking/Payment

Digital Business

Digital Government

Thailand 4.0 : Digital Economy

e-Payment & FinTech

Payment Service Providers

Banks SFIs Non Banks

Growth Rate in Transaction Volumesfrom 2016-2017

Mobile Banking 110%

e-Payment

Debit Card 44%

Digital Payment 30%

Project 1 : PromptPay Payment System

Project 2 : Card Expansion

Project 3 : e-Tax System

Project 4 : Government e-Payment

Project 5 : Literacy and Promotion

Project 6 : Payments for Capital Market

45.7Million IDs

as of November, 2018

870 M

No. of PromptPay registration

Transferred Volume

THB 4.4 TnTotal Value

as of November, 2018

Mobile No.

National ID No.

Corporate Tax No.

E-wallet ID

Adoption

Various services on PromptPay infrastructure

Funds transfer

to IDs

Cross-bank

Bill Payment

Request-to-Pay

QR code

Payment

4

Initiatives Fostering Payment & FinTech

Financial Innovations in Thailand

Standard

QR Code

Multiple

sources of

funds

Standard/Open API Gateway/Hub

Blockchain Community

National Digital ID Platform

Thai Standard QR Code Strategy

Availability

Accessibility

Affordability

for payments of off-line and on-line

merchants

for domestic and international users & payment instruments

for middle and lower market segments

an open infrastructure and

interoperability in payment and financial systems

ONE QR Code for

ANY mobile applications

ALL merchants

MULTIPLE payment instruments

OPEN infrastructure

CROSS-BORDER payments

Standard QR Code for Payment

5

EMVCo Compatible Standard

street vendors

shops

motorcycle taxis

dessert café

wet markets

All merchants in our daily life Government School

“Standard QR Code has reached more than 2 million merchants* in Thailand”

6

Transportation

Buses

Tuk-Tuks

Trains Express Boats

Standard QR Code for Payment

* Online and offline merchants combined

7

Key Success Factors to Promote e-Payment & Innovation

Open

Infrastructure & Interoperability

Industry Collaboration

Supportive Regulations

Adequate

Financial

& Technology Literacy

e-Payment & Innovation

Thank you