Name
Global FinTech Guide
Country _ Name
Thailand
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

Digital payment services are among the fastest-growing industries in Thailand. The Bank of Thailand (BOT), a regulator of payment systems and services in Thailand, recognizes the electronic payment system as an important steering wheel of the digital economy and sustainable development. Payment Directional Paper has provided the policy direction of the BOT to encourage digital payment as the main payment channel accessible to everyone under 3 strategies: (1) openness: open infrastructure, open data, and open competition, (2) inclusivity: encouragement of digital payment adoption and literacy, and (3) resiliency: resilient regulations and supervision.

Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

Under the Ministry of Finance Notification Re: Determining Designated Payment Systems, 'Designated Payment Systems' include inter-institution fund transfer systems, payment card networks, and settlement systems with one or more of the following characteristics:
  • Supporting transactions for the overall financial and economic systems of the country;
  • Connecting and settling through the BAHTNET system, which is part of the primary national infrastructure; or
  • Having more than three (3) users, who may pose risks to the overall financial and economic system of the country or affect the confidence of the public or the stability of the payment system.
Designated Payment Services Under the Ministry of Finance Notification Re: Determining Designated Payment Services, payment system businesses that provide any of the following services are deemed to be 'Designated Payment Services,' operation of which requires a license from (or registration with) the BOT:
  • Services relating to credit cards, debit cards, and ATM cards, except for cards used to settle payments for goods or services under the same business, or under the same franchise system.
  • Electronic money services, subject to certain exemptions.
  • Electronic payment services, including:
    • acquiring business;
    • payment facilitating business; and
    • business of receiving payment on behalf of others.
  • Electronic fund transfer.
The payment systems and services under these three (3) categories are tabulated below:
Highly Important Payment Systems Designated Payment Systems Designated Payment Services
BAHTNET Inter-institution fund transfer system Credit, debit, and ATM card services
Imaged Cheque Clearing and Archive System (ICAS) Payment card network Electronic money services
Settlement system Electronic payment services
- Acquiring business
- Payment facilitating business
- Business of receiving payment on behalf of others
Electronic fund transfer
Generally, any person wishing to operate a payment system or service in Thailand must incorporate a local entity in order to apply for a registration or licence. A local entity must have fully paid-up capital of THB 10–200 million (approx. USD 298,000–5.95 million), depending on the business type. Foreign entities are permitted to engage in the business of payment card network only. Reduction of paid-up capital is prohibited unless the BOT grants approval as such.

There is no application, registration, or license fee.

Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area

The Thai government and the BOT provide favourable business opportunities for payment services in Thailand, yet the BOT has adopted stringent requirements and regulations to supervise the payment service provider with the aim of protecting retail customers. Minimum requirements for operation include good governance, risk management, consumer protection, security standard, business continuity plan and know-your-customer (KYC) policies. In addition, payment transaction businesses can be subject to many other legal requirements, such as exchange control regulations, which require additional licenses or registrations. The application process may take several months, and thus business operators should take these requirements and application timeline into account.

Economic conditions

Market size for payment services and biggest payment service providers

According to the BOT, as of May 2024, e-payment usage accounted for 588 transactions per person per year, and there were 63 million transactions per day on average. Over 139.2 million accounts have been linked to internet and mobile banking services and there were 116.8 million e-money accounts. The number of credit and debit cards was 26.5 million and 53.8 million cards, respectively. There were about 914,600 electronic data capture (EDC) terminals in service. 79 million IDs were registered for PromptPay, a service in Thailand's payment infrastructure development project that enables users to easily receive and transfer funds using Thailand residents' ID or mobile phone number instead of a bank account number, via electronic channels (e.g. internet banking, mobile banking, and ATMs). PromptPay service is part of the payment infrastructure development project of Thailand.

The market for payment services is relatively fragmented and highly competitive. The BOT publishes the statistical data about the use of payment services in each category on its official website from time to time, but the market data of each service providers have not been disclosed.

Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area

N/A

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