Thailand, the host nation for this year’s Money 20/20 Asia event, is rapidly progressing towards digitising its payment ecosystem. Ahead of the show, we run through some of the schemes put in place and milestones reached by this key economy in Southeast Asia.
Thailand: Key facts
- Population: 71.2 million
- Banked population: 88%
- Internet banking penetration: 33%
- Annual card transaction value: $62.5 billion
- Average annual spend per card: $728
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Thailand’s digital payments landscape
Thailand is Southeast Asia’s second-largest e-commerce market. Companies in the country have taken advantage of the growing market by launching app-based and online channels. 64.8% of e-commerce transactions take place on a mobile device.
Food and drink, electrical goods, and clothing are the top categories that Thai users purchase online or in-app. This comfort in ordering everyday essentials has led to a proliferation of food delivery services.
Thailand currently operates several digital payment schemes run by the government and private entities. High smartphone adoption rates – now well above 90% – have led to the proliferation of digital wallets.
QR payments, underpinned by the country’s interoperable Thai QR programme, are rising. At the end of 2022, Thailand had more than 7.3 million QR acceptance points. Thai QR, developed by the central bank in conjunction with significant card providers, has seen three in four people use QRs to make payments.
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The decline of cash usage in Thailand
Cash use has sharply declined across Thailand since the COVID-19 pandemic. In 2019, it accounted for 73% of the country’s transaction volume, but that figure dropped to just under 30% in 2023. Day-to-day spending accounts for most uses of cash in the country, especially among the rural population.
Meanwhile, debit and credit cards dominate the Thai market in circulation, with 83 cards per 100 individuals in 2023. The government’s push for financial inclusion, expansion of services to rural areas, and emerging digital-only banks will only fuel this continued prominence.
Credit and charge card payments account for the vast majority of payment value, underpinned by rewards, discounts, cashback, and interest-free instalments. This trend is emerging in many nations in APAC and in India, too.
Pismo will be at Money 20/20 Asia
Want to talk about the future of payments in Thailand and the wider APAC region? Varun Dudeja, Pismo’s Head of Business Development in APAC, will be at Money 20/20 Asia in Bangkok this month.
Get in touch with Varun and arrange a chat
Sources:
- GlobalData, (2023), “Thailand Cards & Payments: Opportunities and Risks to 2027”
- Argus, (2023), “Thailand Country Report”
