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A description of the economic situation and social conditions in which financial transactions are made without operating with money in the form of tangible bills or coins, but it is a transfer of digital information to each other through intermediaries or not through intermediaries between transaction doers. The current cashless transaction is e-money (electronic money) which pays via e-wallet (electronic wallet), credit cards, debit cards, PromptPay, and QR Code scanning (QR Payment). Cashless payment can be considered a help in a key driver in the future.
Many e-wallet banks have announced that they will not charge fees for money transfer and payment via online channels. The popular channel, e-Wallet, has increased the number of retail money transfer transactions which can be reflected in the Bank of Thailand’s record for e-money usage in 2021 at 467,197.74 million baht, almost doubling from 2019 at 276,317.42 million baht.
The government policy to cure people of the COVID-19 situation through various projects such as Half and Half and We Won. This allows Thais to get to know the e-Wallet app, which is an application for payment for goods and services. As well as the application used by shops to handle payment called wallets. As a result, Thai people have to change their payment and spending behavior.
The popularity of Quick Response Codes (QR codes) has increased. It is believed that many people, including Admin myself, admit that dialing their account number or phone number is difficult and easy to make a mistake. The transfer and payment of goods and services using the Quick Response Code (QR code) in e-Payment via e-Wallet greatly reduces errors and makes it easier for us. Quick response code (QR code) became popular at the end of 2017 and continued to grow in popularity, partly due to the Covid 19 situation that we need to spend without touch.
FinTech is a business that applies modern technology to various forms of financial transaction services to enable efficient service delivery, especially in terms of convenience and lower cost of use.
FinTech is a combination of Financial + Technology, which literally means financial technology developed in the 21st century to provide various transaction services to support or replace traditional transactions.
It is more convenient and faster to use financial services anytime anywhere 24 hours a day via a computer or smartphone. The process is simple and can be done on one’s own. The cost of service is lower than the commercial banks, without any branches and staff, which is in response to the demand from start-ups who have the idea of closing gaps, and inconvenience in using cash or banking services.
A variety of promotions from e-payment providers make it more cost-effective to pay for e-payment products or services because they get discounts, gifts, or refunds from spending. As a result, e-payment is popular because of its low cost of service, fees are significantly reduced and it is also beneficial for users to get promotions that are more cost-effective than cash.
According to We Are Social statistics, more than 80% of Thais have access to the Internet and smartphones which is one of the important factors for Thais to access e-payment via mobile payment. As a result, there are changes in behavior and a cashless society is gaining popularity through e-Payment services such as e-wallet or card spending.
In the future, do you think there will be a factor or an event that impacts living or making zero-touch payments? You can leave a comment to let us know!
