Thailand's national e-payment system will bolster e-commerce
Thomson Reuters
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Thailand is set to launch a government sponsored e-payment system this fall, and experts believe it will propel the country’s e-commerce industry.
The national e-payment system will be deployed in two phases with the goal of transforming the country into a cashless society. The first phase will involve launching an electronic money transfer service at all major Thai banks called PromptPay for peer-to-peer transfers. The second phase will allow electronic payments for goods and services, personal income tax returns, and subsidiaries and welfare services, according to the Bangkok Post.
“Thailand will be the hub of e-commerce and e-payments among ASEAN Economic Community (AEC) by 2017,” predicts Kulthirath Pakawachkrilers, managing director of Joyfulness Co., a Bangkok-based technology consulting firm.
There are an estimated 11 million online consumers in Thailand, notes Sebastien Lamy, a partner at Bain & Company. And the country's entire e-commerce market is expected to have reached $58.4 billion in 2015, a 3.65% year-over-year (YoY) increase, according to the the Thai government’s Electronics Transactions Development Agency (EDTA). Furthermore, Lamy predicts the number of online consumers in Thailand to double within the next three to five years spurred on by the country’s push to go cashless and invest in the digital economy.
The national e-payment system will have a huge impact on social commerce in Thailand.Thai shoppers are already high on the list of consumers who purchase directly through social media, with a survey from PwC finding that 51% of online consumers in Thailand have purchased via social media. And with the country shifting toward a cashless model, more global companies may try to develop their social media presence in Thailand to increase online sales.
For example, Facebook is reportedly piloting a payment system in Thailand that allows consumers to purchase directly from a company’s Facebook page. So online retailers may look to improve their Facebook pages to better capitalize on Thai consumers' appetite for making purchases on social media.
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