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30 Dec 2022

Financial Institutions

Online payment sees continual growth; business expansion among service providers remains a key challenge (Current Issue No.3378)


        KResearch is of the view that online payment among Thai consumers will likely see further expansion. In 2023, the share of payments via internet banking, mobile banking and e-money may reach 95 percent of total payment transactions. The volume is projected to be 36,510 - 37,970 million transactions, increasing by 40.0-45.6 percent from 2022.

        The business model of online payment service can be divided into three phases. The first phase is development of digital platforms – internet banking websites and mobile applications like mobile banking and e-wallet. The second phase focuses on promotion to continually increase the number of users and transaction volume. This phase is the key for platform operators to acquire new customers and maximize the use of customers’ behavioral data for analyses in order to shed light on their real needs. The third phase – a current and future challenge – is expansion to generate returns from new and related businesses.

        Even though Thai consumers have increasingly shifted to online payments, in response to the government’s policy aiming to reducing use of cash and moving towards a digital economy and cashless society, business expansion among service providers is a key challenge for further operations and sustainable income in the future. The turning points that would allow such successful expansion are efficient application of consumer data under the principles of good governance and the Personal Data Protection Act, and development of new platforms to strengthen and establish linkages within business ecosystems.

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Financial Institutions