The COVID-19 pandemic has been an important catalyst in
transforming the way Thai consumers conduct funds transfers and pay for goods
and services. Such trends have given rise to the “New Normal”, which is geared
towards making money transfers and purchases that do not require physical
contact, otherwise known as contactless payment. According to surveys conducted
by KResearch, Thai consumers have increasingly gravitated towards using mobile
banking and e-wallet platforms, even after the spread of COVID-19 in Thailand
has subsided. Concurrently, these services have also seen an influx of new
users. Consumers aged between 35 and 44 years old feature prominently as a
group which has contributed to the increased use of mobile banking and e-wallet
services, compared to the previous cluster of users aged between 25 and 34
years old. The surveys also found that the three main features of mobile
banking and e-wallet applications that meet current customers’ needs most are:
1. All online accounts can be merged into one application; 2. The platforms
respond to everyday lifestyle needs; 3. They feature credit card compatibility.
KResearch anticipates that funds transfers and payments via mobile
banking and e-money will likely experience continuous growth in 2020. However,
while these transactions have received a boost from contactless payment, growth
is expected to stall due to a consistent drop in transaction value and a
decline in consumers’ purchasing power owing to the economic recession. The
volume of money transfers and purchases via mobile banking services is
projected to be in the range of 7,758.0-7,927.5 million transactions, at a growth
of 57.5-61.0% YoY, while their value will be in the range of THB28,910.4-29,707.2
billion, with a growth of 18.4-21.7%YoY. Meanwhile, the volume of transactions
via e-money platforms will likely be in the range of 1,990.1 to 2,038.0 million
transactions with a growth of 1.2-3,7%YoY, whereas their value is expected to
be in the range of THB286.3 to 291.1 billion, at a growth of 1.5-3.2%YoY.
Going forward, online platform operators via mobile banking and
e-wallets still have the potential to expand, but must contend with new players
amid a highly competitive market, particularly among e-wallet service
providers. Therefore, KResearch is of the view that competition in the market
will become more intense, with a focus on pricing strategies and a wide variety
of promotions. These tactics will likely play into marketing schemes to attract
both consumers and business operators, especially stores and restaurants.
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