PM urges Thais to subscribe to Prompt-pay system

[jayboy]

It would be very useful if someone could explain to me exactly how Promptpay works.Specifically - since my bank has asked me to register - how it might be useful to a typical expatriate.

[TallGuyJohninBKK]

No need to presume, it's actually guaranteed that the government will know your transactions - the schematic released for National e-Payment explicitly states the data flow will be sent to the government.

I'm totally on board with this as it will increase tax revenue for the nation and make it harder for grey market businesses to exist.

You may be right about that in the long run, and the absence of a fair, broad-based tax system here does contribute to the country's problems with decaying/under-maintained infrastructure and public services.

However, it also provides a government-controlled system that the authorities can abuse and mis-use for political and other inappropriate purposes, doing who knows what with the financial accounts of those targeted for persecution by those in power.

Of course, even if the payments system ends up resulting in increased tax revenues, there's hardly any guarantee those will be spent on meaningful, needed projects -- as opposed to being frittered away on military pork like submarines and other backhander-laden, cheaply implemented projects.

[CanInBKK]

No need to presume, it's actually guaranteed that the government will know your transactions - the schematic released for National e-Payment explicitly states the data flow will be sent to the government.

I'm totally on board with this as it will increase tax revenue for the nation and make it harder for grey market businesses to exist.

You may be right about that in the long run, and the absence of a fair, broad-based tax system here does contribute to the country's problems with decaying/under-maintained infrastructure and public services.

However, it also provides a government-controlled system that the authorities can abuse and mis-use for political and other inappropriate purposes, doing who knows what with the financial accounts of those targeted for persecution by those in power.

Of course, even if the payments system ends up resulting in increased tax revenues, there's hardly any guarantee those will be spent on meaningful, needed projects -- as opposed to being frittered away on military pork like submarines and other backhander-laden, cheaply implemented projects.

I agree with your last paragraph fully. Its kinda scary that most spending decisions are left to elected officials - who in turn have their "own agendas".

[CanInBKK]

It would be very useful if someone could explain to me exactly how Promptpay works.Specifically - since my bank has asked me to register - how it might be useful to a typical expatriate.

PromptPay is the first of a multi-phase program called National e-payment. PromptPay itself is split into multiple subsections of which "registration" is this first.

In October (system delays aside) you'll see the launch of the second part of PromptPay which is C2C money transfer. As of now, if you want to give someone money (debt repayment etc.) there are 2 main ways:

1. Withdraw the cash from your account and deposit it at a branch into the recipient's account (no fee but time wasted)

2. Transfer from your account to the recipient's account using their account number, and bank name via ATM, Internet or mobile banking (25-35 baht fee but super convenient)

Once PromptPay C2C is live in October the fee for Internet and mobile transfers in #2 above will be reduced to 0-5 baht depending on the amount. Super easy and practically free.

It's meant to be a win-win for all parties involved (including the government)

Edited July 25, 2016 by CanInBKK

[jayboy]

It would be very useful if someone could explain to me exactly how Promptpay works.Specifically - since my bank has asked me to register - how it might be useful to a typical expatriate.

PromptPay is the first of a multi-phase program called National e-payment. PromptPay itself is split into multiple subsections of which "registration" is this first.

In October (system delays aside) you'll see the launch of the second part of PromptPay which is C2C money transfer. As of now, if you want to give someone money (debt repayment etc.) there are 2 main ways:

1. Withdraw the cash from your account and deposit it at a branch into the recipient's account (no fee but time wasted)

2. Transfer from your account to the recipient's account using their account number, and bank name via ATM, Internet or mobile banking (25-35 baht fee but super convenient)

Once PromptPay C2C is live in October the fee for Internet and mobile transfers in #2 above will be reduced to 0-5 baht depending on the amount. Super easy and practically free.

It's meant to be a win-win for all parties involved (including the government)

Many thanks for this.So if I understand correctly the method of transferring from my bank account (Internet/mobile banking) will be exactly the same except for the reduced fee.That's a positive though not really game changing improvement since the present fee is already very modest.I guess the very useful aspect is the ability to transfer money via someone's mobile number.

[TallGuyJohninBKK]

Don't forget - the new system will only work if BOTH parties, the sending and receiving entity, have chosen to register with the new PP system.

And AFAIK, doing so isn't as yet mandatory, either for Thais or foreigners.

[Felt 35]

As long the personal data protection act not goes hand in hand with prompt-pay which it doesn't today, I personally pass.

[CanInBKK]

Don't forget - the new system will only work if BOTH parties, the sending and receiving entity, have chosen to register with the new PP system.

And AFAIK, doing so isn't as yet mandatory, either for Thais or foreigners.

You are correct again. However the second part of PromptPay is the G2C portion which means that in future if you want to receive social security payments or tax refunds, you will have to be a participant of PromptPay. The government was smart enough to know that if they left everything up to consumers the registration rate would be low. This way they can "encourage" use without forcing citizens.

[Sirius1935]

In previous years I always got a cheque for my tax refund which took three days to clear. This year my tax refund was directed to my Promt Pay with Bangkok Bank. Two weeks later nothing has been credited to my account. I'll go back to the tax office next week and ask them to cancel the Prompt Pay and pay me the slow way. It might be three weeks quicker than the "Promp way".