Thailand is poised to transition to a cashless society faster than its regional counterparts, driven by the nation’s rapid adoption of digital technologies, according to a survey by Visa.

 

Visa, a leading global provider of digital payment services, recently conducted the Consumer Payment Attitude Study, which indicates that Thailand could become cashless by 2028, ahead of the broader ASEAN region, which is expected to reach this milestone after 2028.

 

The survey found that 22% of Thai consumers believe a cashless society will emerge between 2026 and 2028, compared to 16% of consumers across ASEAN.

 

Thailand ranks third in the region for carrying minimal cash, with cash accounting for only 47% of the content in each respondent’s wallet, trailing behind Vietnam (56%) and Malaysia (49%).

 

Punnamas Vichitkulwongsa, Visa Thailand’s country manager, noted that the development stage of payment technology in each regional market is critical for advancing towards a cashless society. In Thailand, PromptPay, the national payment platform, has significantly driven digital banking adoption, especially during the post-pandemic period.

 

The survey also revealed that Thailand leads the region in mobile banking app usage, with an impressive 97% of Thai consumers using these apps at least once a week, surpassing Vietnam (95%) and Indonesia (90%).

 

Real-time payments (RTP) are growing rapidly, with 76% of ASEAN consumers aware of RTP and 47% having used it for fund transfers. Thailand leads the region in RTP usage frequency, with 86% of respondents making at least one RTP transaction per week, followed by Vietnam (84%) and Indonesia (69%).

 

Mr. Punnamas attributed the growth of RTP in Thailand to PromptPay, which has enhanced digital payment adoption and supported Visa’s business in the market. Thai consumers are becoming increasingly comfortable with digital payments, including Visa credit cards.

 

However, he acknowledged that PromptPay’s success has affected Visa’s business in Thailand, particularly in the debit card segment. The cancellation rate of Visa debit cards has increased post-pandemic, largely due to the rising influence of PromptPay.

 

“Approximately 20% of Visa debit cardholders have not renewed their cards after expiry during the post-pandemic period. However, this figure is expected to decline as debit cards remain essential for specific customer segments,” he said.

 

Given the country’s high household debt and limited access to credit cards for certain retail borrowers, debit cards remain a crucial digital payment option for this segment.

 

Mr. Punnamas further shared that Visa Thailand plans to launch Click-to-Pay, a tokenized payment system, next year to enhance card security and reduce fraud. This innovative solution will eliminate the need for a 16-digit card number.

 

Source: Bangkok Post

 

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The editorial team at Invest Bangkok Property