Third Stop - Thailand
Contributed by Lim Jing Wei, Chief Fintech Officer
Embarking on the third leg of our journey through the World's Real-Time Payment Systems, we now venture into the realm of Thailand's PromptPay network. Here, the fusion of convenience, efficiency, and innovation is reshaping the very essence of payment experiences.
Launched in 2016, PromptPay stands as a testament to Thailand's commitment to embracing digital advancements for the betterment of its citizens. In this article, we delve into the essence of PromptPay and its transformative impact on Thailand's financial landscape.
PromptPay emerges as a beacon of seamless money transfers, offering users the ability to effortlessly move funds across channels. This revolutionary system, a joint endeavour between Thailand's major banks and Vocalink, a Mastercard company, has transcended the conventional, providing users with lower fees and a heightened sense of financial empowerment.
Embracing PromptPay entails a simple yet transformative process. Users can swiftly register by linking their existing bank accounts with their citizen ID or phone number via a variety of accessible channels – be it mobile banking, internet banking, ATM machines, or in-person branch services. The power of PromptPay lies in its user-friendly nature, ensuring registration can be completed at one's own pace and convenience.
A pivotal milestone in Thailand's payment journey is reflected in the global payment report 2023 by Worldpay from FIS. The report indicates the rising significance of Account-to-account (A2A) payments in the Thai consumer payments arena. PromptPay, as a real-time system, empowers users to make payments directly from their bank accounts through various applications. It's this very system that has elevated A2A payments to the forefront, constituting a remarkable 42% of e-commerce transaction value in 2022, up from 38% in the preceding year.
However, PromptPay isn't limited to mere money transfers; it's a catalyst for change across diverse spheres. The government employs PromptPay for social welfare disbursements, ensuring funds reach intended beneficiaries via their citizen ID numbers. Additionally, the network offers an array of supplementary services that have garnered immense popularity, serving the public, businesses, and government needs alike. The result? A surge in payment transactions that solidifies PromptPay's role as a transformative force in Thailand's financial ecosystem.
What's even more exciting is that CYS Global Remit is in the midst of introducing Real-Time payments via the PromptPay Network through our mobile application. Keep an eye out for updates.