The spread of cashless payments through PromptPay’s electronic payment system in Thailand is set to reach a record high in 2023
The Bank of Thailand’s 2023 year-end report said financial transactions passing through PromptPay, Thailand’s national electronic payment platform, reached a new high in 2023, while the number of cash transactions declined markedly.
In December 2023, the total number of financial transactions using PromptPay peaked at 75.9 million per day. Last year, the average daily remittances through the platform were 54.5 million, totalling 130 billion baht.
Remittances under 5,000 baht fell to an average of 510 baht per transaction in December, down from 570 baht per transaction in January last year. The decline in average payment size reflects the country’s improving financial inclusion and the widespread adoption of PromptPay as an everyday payment platform among individuals,’ the report said.
As of December last year, PromptPay had 77.2 million registrations. Since its introduction in 2016, usage of the system has skyrocketed, especially during the pandemic. The report notes that digital payments have grown significantly among Thais over the past few years as the country moves towards a cashless society.
On average, there were 538 digital payment transactions per user in 2023, up from 135 in 2019. This growth is attributed to internet and mobile banking channels, with the number of accounts in these channels reaching 136 million in 2023, up from 89.5 million in 2019.
Similarly, the number of digital payments made through e-wallets has increased over the past few years. In 2023, the number of e-wallets will be 117 million, up from 82.5 million in 2019.
The report said that, on average, cash withdrawals fell to 2,118 per person in 2023 from 2,414 in 2019. Cash withdrawals in value terms fell to 24,835 baht per person per year in 2023 from 32,977 baht per person per year in 2019.
The report said the number of cash withdrawals from ATMs using mobile banking functions without using a bank card tripled in 2023 compared to 2018.
In a related development, the Bank of Thailand and the Bank of the Lao People’s Republic recently launched a cross-border payment system to enable seamless transactions between Thailand and Laos. The initiative also covers Cambodia, Vietnam, Malaysia, Indonesia, Japan, Singapore, Hong Kong and Vietnam.
The cooperation aims to develop digital payment systems between Thailand and countries in the region to increase trade, investment, tourism and the use of local currencies under the ASEAN Payment Connectivity initiative.
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