Third COVID-19 outbreak boosts growth of mobile banking and e-wallet transactions (Current Issue No.3219)

The COVID-19 outbreak has been a key factor in boosting the growth of mobile banking and e-wallet transactions. A recent survey conducted by KResearch found that Thai consumers generally conduct around 19 funds transfers and/or payments for goods and services per week via mobile banking and e-wallet applications. This is a higher rate of usage than during the first outbreak, wherein the number of transactions averaged 17 per week. At the same time, 53.9 percent of consumers reported increased usage.

          KResearch views that mobile banking and e-wallet transactions will see further expansion through the remainder of 2021, thanks to a surge in online spending during the most recent COVID-19 outbreak. KResearch projects that the volume of payment and funds transfer transactions via mobile banking applications in 2021 will grow 80.2-83.5 percent YoY, accelerating from growth of 79.7 percent in 2020. Likewise, e-money transaction volume is expected to grow 15.8-18.0 percent, higher than the previous year which stood at 8.7 percent.

          In terms of value,  mobile banking transactions in 2021 are projected to grow approximately 36.5-38.0 percent YoY, close to the level seen in 2020. Meanwhile, e-money transactions value in 2021 is projected to grow approximately 15.5-17.7 percent, further acceleration from growth of 9.9 percent in 2020. Such higher growth could be primarily attributed to the use of the G-Wallet (Pao Tang) mobile application as part of the government's financial assistance measures, which are likely to be extended throughout 2021. The increased e-money transactions may also stem from the entry of reliable new players with potential into the market. ​