Traditional finance companies are beginning to fear the impact of the government’s PromptPay e-payment platform, as reported by The Bangkok Post.
The introduction of a new e-payment system, sponsored by the Thai government, will be a way for ecommerce businesses to overcome low credit card penetration in the country. Bangkok Bank expects transactions via its branch channel will decline more than 5% annually over the next few years due to the advent of the government’s national e-payment scheme.
Transactions through Bangkok Bank have continued to decline by 5% per year over the past few years as customers move away from the brick-and-mortar banking channel and towards the online platform.
Transactions through Bangkok Bank’s 1,000 or so branches nationwide have continued to decline by around 5% per year over the past few years as customers move away from the brick-and-mortar banking channel and towards the online platform, says Prassanee Ouiyamaphan, Executive VP of Bangkok Bank.
Currently, transactions via traditional channels represent about 30% of the total transaction rate.
PromptPay, a money transfer and payment service via the digital channel under the e-payment scheme, is scheduled to open for pre-registration today at many commercial banks, including Bangkok Bank.
Under PromptPay, people can easily and rapidly transfer money online to recipients who hold accounts at different banks, or even the same banks in cross-clearing zones, free of charge.
All transactions up to $142.44 (THB 5,000) are free; then transfers up to $855 (THB 30,000) are charged a fee of no more than $0.06 (THB 2); and transfers exceeding $2849 (THB 100,000) are charged no more than $0.28 (THB 10).
Most customers are expected to register via ATMs, followed by the digital channel. The bank’s ATM and debit cardholders total 12 million, while the bank has 9,500 ATM terminals.
Bangkok Bank allows people to sign up for PromptPay during pre-registration, which runs until July 14, via mobile banking and websites.
All banks would compete to attract consumers to use their accounts as the main account for PromptPay registration, though overlapping accounts will be unavoidable during the pre-registration period. However, accounts to be linked to mobile phones and ID cards will be verified from July 15 when official registration begins.
Bangkok Bank shares closed yesterday on the SET at $4.50 (THB 158.50), down 1%, in heavy trade worth $40 million (THB 1.46 billion).