Top-up Cash Card Trend Taking Off In Thailand

[george]

Top-up cash card trend taking off in Thailand

BANGKOK: -- Tired of carrying around a bulky wallet and coin purse? According to Payment Solution Co, cash cards could be the answer.

Teenagers in tech-savvy Hong Kong and Singapore have been quick to adopt cash cards as substitutes for money.

Like mobile pre-paid cards, cash cards are easily ''refillable'' through ATMs and mobile phones, and are typically accepted at retail stores that accept credit cards.

Thanin Angsuwarangsri, general manager for Payment Solution Co, a subsidiary of Shin Corp and the issuer of the OK cash card, said the cards were most suitable for small-value transactions, because they don't require the holder's signature.

''One just places his card into a reading machine or shows it to the retailers,'' Mr Thanin said.

The cash card's limit stands at 100,000 baht for registered users and 25,000 baht for gift cards. On average, users' limits are 2,000 baht per card.

Cards cost different amounts upfront depending on their designs. Users must pay a 100-baht annual fee, 10-15 baht for fund transfers in Bangkok and 20 baht for transfers upcountry.

Fashionable designs and loyalty programmes distinguish the cash cards from debit cards.

The only other local cash-card issuer is Thaismartcard Co, founded by the CP Group. However, its cards can only be used at CP-affiliated 7-Eleven convenience stores. OK cash cards _ which are co-branded with Visa and MasterCard _ can be used at any outlet with a credit card reading machine.

Since their launch last October, OK cash cards are now used by some 200,000 people. The firm aims to have one million cards in use by the end of this year.

''Our targeted customers currently are aged between 15 and 25 and their parents. They are trendy and receptive. It would take them no time to learn how to top up the money or use our cards,'' he said.

At the moment the cash card business has better market potential than credit cards, given a targeted market share of three million.

Most people spend about 1,000 baht per month on their cash cards, compared with 6,000 to 7,000 baht per month on credit cards.

''The trend of cash card growth will be similar to that of prepaid cards for mobile phone services. People have increasingly used the prepaid system to help control their spending,'' said Mr Thanin.

He added cash cards could also become an educational tool to teach youngsters about financial management and were less open to fraud.

''We have found that the cards have been used most by teenagers during the weekend at shopping malls, restaurants and gas stations,'' he said.

--Bangkok Post 2006-03-15

[bino]

I'm curious to know if these cards can be used for online purchases.... anyone know?

[mbkudu]

I'm curious to know if these cards can be used for online purchases.... anyone know?

I am wondering the same thing. Many companies online in the west don't accept a debit card number issued from a Thai bank even if it has a VISA or MC logo on it.

[Jai Dee]

Payment Solution Co, a subsidiary of Shin Corp and the issuer of the OK cash card...

This bit caught my eye...

[sriracha john]

One more item to add to the boycott list...

[Heng]

Cash is king.

[camerata]

''The trend of cash card growth will be similar to that of prepaid cards for mobile phone services. People have increasingly used the prepaid system to help control their spending,'' said Mr Thanin.

I love this. First Thaksin and TRT encourage Thais to spend themselves deep into debt to fuel domestic consumption, then when it goes too far they slap a limit of five-times-salary on credit cards that inconveniences responsible credit card users, and now a subsidiary of Shin is pushing cash cards with a holier-than-thou message that it will help control personal spending.

Today is March 15, the Ides of March. If only our Dear Leader would suffer the same fate as his idol, Julius Caesar, and get stabbed in the back by his friends (metaphorically speaking, of course!).

[astral]

These were introduced in Portugal about 15 years ago.

Can be used for anything, where you would normally pay cash.

Even a few baht..............

The cards can be recharged at the ATM.

[terdsak_12]

Sounds like a good idea, haven't seen any around though!!!!

[limbos]

These were introduced in Portugal about 15 years ago.

Can be used for anything, where you would normally pay cash.

Even a few baht..............

The cards can be recharged at the ATM.

At 15-20 baht a pop, mmmmmmmmmmm.

[george]

7-Eleven sells them, but i haven't tried it out.

[Plus]

How secure is it?

Top value at 100,000 baht - that's a very valuable piece of plastic, and it doesn't even require a signature so any pickpocket can spend as much as possible before you call the company and cancel the card.

Also you'd still need some cash and some coins in your wallet before the cards are widespread enough.

Let them try and see how it goes. Gift cards with stored value are nothing new even in Thailand - I once bought SCB Valentine gift card, almost ten years ago.

[bino]

Sounds like a good idea, haven't seen any around though!!!!

You can see them behind the counters at Seven Eleven- called "Smart Purse" or something like that. Most Seven Elevens also have a "proximity sensor" for transactions on the counter also.

[astral]

How secure is it?

Top value at 100,000 baht - that's a very valuable piece of plastic, and it doesn't even require a signature so any pickpocket can spend as much as possible before you call the company and cancel the card.

As secure as your wallet or handbag

I doubt the cards can be stopped.

Same security as cash.

No need to carry the maximum.

Would you carry that much cash? Of course not.

[PREM-R]

I suspect that the main problem will be the number of shops etc that accept the card.

This is the link to the 7eleven card site - unfortunately after the index page its in Thai - if anyone can decipher please let us know what it is all about. Value Card