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A comprehensive overview of the cards, payments and consumer banking market in Thailand with perceptive commentary backed by relevant data.
Thailand's payments market is robust and increasingly technology-led, with consumers responding positively to government policies promoting digital and cashless payments.
Card use is growing, with issuers investing in rewards programmes, promotional campaigns and cashback schemes, supported by the rise of internet and mobile banking.
QR code payments and digital wallets are proving increasingly popular while PromptPay, the instant payment scheme launched in 2017, has seen transaction volumes soar from around $11bn in 2017 to$442bn by the end of 2019.
How the government and other stakeholders work to promote digital payments.
Which credit card market segment is proving lucrative.
What card tie-ups and reward schemes appeal to consumers.
Who is gaining market share in Thailand debit cards.
TABLE OF CONTENTS
Demographics and the economy
Thai cards market
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Cards Market Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market
Appendix IV: Mobile payments
Appendix V: Profit pool
Appendix VI: The networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquiring and processing
Appendix IX: Online acquiring
Demographics and Economy
The Thai economy is heavily dependent on exports, which account for more than two-thirds of the country's gross domestic product. Growth slumped to a five-year low in 2019 as the trade war between the United States and China weakened global trade.
Thailand has a robust payments market that is increasingly technology-led, in line with the government's intent of moving towards a digital or cashless payments environment.
The total billed volume on payment cards (debit, credit, ATM and prepaid cards) was about $342 billion in 2019, a decline of 0.1% from 2018. This was due to a decline in ATM withdrawals in the year, indicating the growing preference for other digital channels.
In Thailand, mobile network operators have a dominant share of the mobile money subscriber base (almost 98%). Of the three major mobile network operators – Total Access Communication (DTAC), TrueMove and Advanced Info Service (AIS) – the latter pair dominate the mobile-money segment.
Thailand's credit cards market maintains a healthy profit pool with pre-tax profits estimated at $1.06 billion for 2019, compared to $912 million in 2018. The growth was fuelled by growth in billed volume and outstandings.
There were an estimated 13.9 million Visa-branded credit cards in issue at the end of 2019. Visa had an estimated market share of 58% in the number of cards and 68% in billed volume. Visa dominates the debit cards market in Thailand with about 72% market share.
Key Retail Banks and Issuers
The banking landscape in Thailand is composed predominantly of domestic issuers. Foreign banks (such as Citibank) and financial institutions (such as AEON Thana Sinsap, controlled by a Japanese firm) have a presence but enjoy far less market share.
Acquiring and Processing
Merchant acquiring in Thailand is relatively consolidated as several banks have less appetite for the acquiring business due to the low margins. KBank and Bangkok Bank dominate the acquiring market, collectively accounting for more than half of the total market share.
Along with Singapore, Thailand is the leading B2C e-commerce market in Southeast Asia in terms of sales and is projected to maintain this rank through 2025 due to a strong double-digit growth rate.
Regulatory and Markets Information
Financial Sector Master Plan Phase IV is being implemented during the 2019-21 period and involves five key frameworks, including the creation of an interoperable infrastructure.
AEON Credit Service
AEON Thana Sinsap
Bank of Ayudhya
Bank of China
Bank of Thailand
Bank of Tokyo-Mitsubishi UFJ
Kentucky Fried Chicken
Krungsri Consumer Finance Group
Mitsubishi UFJ Financial Group
National Interbank Management and Exchange
Peninsula Bangkok hotel
Siam Commercial Bank
Stock Exchange of Thailand
The Waldorf Astoria
Tourism Authority of Thailand
Trade and Development Bank of Mongolia
Reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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