Cash no longer king in payments shift

[webfact]

Cash no longer king in payments shift
By THE NATION

 

Suripong Tantiyanon, Visa country manager for Thailand.

 

BANGKOK: -- THREE-QUARTERS of Thais polled say they use electronic payments - including cards, mobile devices and wearables - more often than cash.

 

The 2016 Visa Consumer Payment Attitudes Study survey, which tracks consumers’ attitudes consumers on electronic payments and identifies trends in payments behaviour in six Southeast Asian nations, indicates a distinct shift away from cash.

 

The so-called emerging affluent were the heaviest users of electronic payments (83 per cent) compared to the mass market at 68 per cent. The main reasons cited for carrying less cash were the lack of safety (60 per cent), up from 57 per cent in 2015, and easy access to cash withdrawals (48 per cent), up from 38 per cent in 2015.

 

“As new innovation emerges, consumers are more willing to try new payment technologies. The case in point is how seven in ten Thais (67 per cent) prefer to automate payment, eliminating the entire physical process of paying,” said Suripong Tantiyanon, Visa country manager for Thailand. 

 

“This came at a time when we are experiencing unprecedented growth in the on-demand economy, particularly in ride-sharing apps. This creates new demand for fast, secure and convenient card-not-present payments.”

 

‘Comfortable’ 

 

New ways to authenticate payments are also a draw for Thais; 75 per cent of respondents stated they felt comfortable using biometrics technology such as fingerprint and facial recognition – the highest percentage in Southeast Asia. Enthusiasm for biometrics are skewed towards Generation Y, 79 per cent of whom have no problem relying on biometrics, compared with 70 per cent of Generation X.

 

“There is clearly a growing appetite for electronic payments in Thailand,” Suripong said. “Take for instance existing innovation such as Visa payWave contactless payments, which is widely available at major retailers, supermarkets and restaurants nationwide. We are not surprised to see that 82 per cent of respondents would choose contactless payments over cash, if merchants offer them.”

 

Electronic payments for on-demand services, like meal delivery, grocery delivery, transport and travel are shaping up in Thailand.

 According to the Visa Consumer Payment Attitudes Study, 54 per cent of respondents have used on-demand delivery services in Thailand in the past 12 months, with 29 per cent having used it two or three times a month. The most popular category was food delivery with three in four respondents (75 per cent) having used their mobile device to order food online. Cash is currently the main payment method at 71 per cent, but electronic means are catching up. Half the respondents (47 per cent) said they would use payment via “card on file” or by a credit card registered with the app, while 56 per cent said they would like to pay upon delivery using mobile wallet.

 

 “Whether it is mobile wallet, payment gateway or any technology, our study shows that fundamentally Thai people still expect their payment experience to be safe, fast, and secure (82 per cent). And a global payment network like Visa – that is capable of handling more than 65,000 transaction messages a second – more than meets the demand,” said Suripong.

 

Source: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30318834

 

-- © Copyright The Nation 2017-06-23

[fiddlehead]

Wonder who they polled? 

Certainly not my (Thai) wife or her friends. 
None of them would know how to use any electronic payments except for the ATM transfer. 
I go to the market here in Rawai (where many Thai's do their grocery shopping) and never saw anyone accept or try to pay with anything other than cash. 

So, I'm calling this guy's statistics BS

Online food ordering with their mobile?  Yeah right!

[colinneil]

A load of nonsense, Thais using electronic payment.

Here in Issan even when buying a new pickup they refused my card, had to be cash.

Only 2 places here in Banphai accept cards big C and Global house.

[fforest1]

A cashless society will be pushed tirelessly in the coming years,by

any and all means necessary..And you can take that to your cashless

bank....

 

 

 

[Orton Rd]

How to pay with a 'wearable'?

[ezzra]

 

Completely missed the gist of the phrase cash is king, it relate to when an

opportunity comes around that require to produce a quick payment in

cash to clinch the deal/bargain when everyone else is running to see the loan

office in the bank.. and yeah, I know some local people  who's are on a minimum

salaries but their 3 credit cards are maxed out on a 20%+ interest a year....

[Emster23]

Have yet to see a card reader at local food stall where I buy grilled chicken. C'mon, get with the program.

If anything, this article points out how oblivious certain classes are to what life is really like for most Thais.

[Orac]

Apparently they also asked in their online survey how many people used the internet regularly and were prepared to take part in online polls and surveys and were amazed to find that 100% responded yes to this thus deducing that thailand was the most tech savy country in the world with an incredibly informed electorate in no need of a parliament since all votes could be put directly to the public.

[wgdanson]

I use my Bkk Bank debit card regularly and NEVER has the cashier checked the signature I write with the one on the card, NEVER have I had to put any PIN number into any machine, except ATM of course. 

[wgdanson]

2 hours ago, Orton Rd said:

How to pay with a 'wearable'?

Keep your cash in your underpants!

[janclaes47]

I believe the OP, but the reason they use the credit cards is because they simply don't have the cash any more, and are maxing out their credit cards.

 

At the top of the escalator in Big C central Pattaya has for months a company a booth that issues credit cards.

 

They are there with at least 5 servants, and I haven't seen them ever not busy. In fact they do a roaring trade.

 

Lets wait until the new figures of consumer debt are published, they will be surprising................if the real figures are published.

 

 

Edited June 23, 2017 by janclaes47

[retarius]

Does anyone know a market where they take credit cards? There are none in my town, and the markets seem to be the places with the most customers actually buying instead of window shopping. We have a shopping mall which is always full but the stores are empty except for the food zone in which you have to pay cash to buy tokens to spend at the counters.

 

I wonder who was included in the polling/

[akampa]

2 hours ago, Orton Rd said:

How to pay with a 'wearable'?

what the heck is a wearable ?

[Jonmarleesco]

A pity that those using their mobiles to make payments, and those outlets accepting them, have little idea what they are doing. The time a transaction takes, half a dozen customers with cash could have completed their business. 

[Jonmarleesco]

1 hour ago, Emster23 said:

Have yet to see a card reader at local food stall where I buy grilled chicken. C'mon, get with the program.

If anything, this article points out how oblivious certain classes are to what life is really like for most Thais.

They are oblivious to life.

[gk10002000]

1 hour ago, wgdanson said:

I use my Bkk Bank debit card regularly and NEVER has the cashier checked the signature I write with the one on the card, NEVER have I had to put any PIN number into any machine, except ATM of course. 

yeah, pretty much the norm.  PIN at the very least should always be required, but even here in the states when I swipe my card, it doesn't usually ask for a PIN for my credit card or debit card.  And as you know the merchants aren't going check IDs, match signatures (if you even sign)

[daboyz1]

How to pay with a 'wearable'?

NFC

[daboyz1]

what the heck is a wearable ?

Smart watch.

[Sydebolle]

What's the average amount being overdue per capita? And what's the average credit ceiling per capita? 

[Cadbury]

3 hours ago, akampa said:

what the heck is a wearable ?

Wearables are those things you have to remove to get to where you want to go.

Edited June 23, 2017 by Cadbury

[lordblackader]

At first I was like..huh...and then I read this

Quote

According to the Visa Consumer Payment Attitudes Study

 

 Visa is selling a false narrative, not only do Thai's prefer cash it's also difficult to go to many places outside of a shopping mall and use a card as well, at least in the North. 

[daboyz1]

This is untrue. These manipulated surveys only serve one purpose. Make people believe that the only way forward is the use of none cash transactions, thus taking away the only bit of freedom left. Governments and banks are working very hard to make the use of cash a thing of the past. This way they have total and unlimited control over the individual and their finances. So, they produce these make believe stories to speed up the process and the sheeple just go along with it. Remember, the vampire can't bite you unless you invite him in.

Cash is simply a piece of paper that is backed up by a government. Moving some or all transactions to an electronic method doesn't change that.

That said it's much easier to track electronic transactions than it is cash. I'm sure governments love that.

[Redline]

10 hours ago, webfact said:

The so-called emerging affluent

The so-called "about to be broke, living on credit in a failing society with no sense of reality or connection with the world folks."

[scorecard]

9 hours ago, fiddlehead said:

Wonder who they polled? 

Certainly not my (Thai) wife or her friends. 
None of them would know how to use any electronic payments except for the ATM transfer. 
I go to the market here in Rawai (where many Thai's do their grocery shopping) and never saw anyone accept or try to pay with anything other than cash. 

So, I'm calling this guy's statistics BS

Online food ordering with their mobile?  Yeah right!

 

1. This guy represents Visa. Is he honest? Is he making a story to push for more business for Visa?

 

2. Yes you can order food from many sources by mobile phone (or by e.mail) and you can in most cases pay on delivery in cash, in many cases cash is the only way you can pay. Example: several Pizza houses accept orders by phone, my guess is that a very large percentage of the customers pay by cash - they don't have electronic card payment facilities.

 

3 A different angle - what's not being said (by this man and others) is that all forms of card payments generate fees . for the card holding companies (e.g.Visa) - millions of Baht per month.

[scorecard]

3 hours ago, Sydebolle said:

What's the average amount being overdue per capita? And what's the average credit ceiling per capita? 

 

Thailand is awash with credit card debt, overdue debt, non-performing debt, write-off bad debt. And that includes Thai and foreign customers.

 

A few years back a student at my university in Bkk had access to getting credit cards for other students by providing just a copy of ID card, her fee 2,000Baht. 

 

She was reported and dismissed and the details given to the police who investigated and discover the student and her bank cohort had been instrumental in issuing over 300 cards to students who have no income.

 

Ultimately the bank concerned cancelled all the cards and reviewed their checks in regard to internal approval of cards. They dismissed their staff member and they pushed for prosecution of the errant staff member.

 

The 3rd year student was dismissed, all of her credits (all years) were cancelled and her records marked that she could never re-register and her credits could not be transferred to another uni.

Edited June 23, 2017 by scorecard

[ChrisY1]

15 hours ago, fiddlehead said:

Wonder who they polled? 

Certainly not my (Thai) wife or her friends. 
None of them would know how to use any electronic payments except for the ATM transfer. 
I go to the market here in Rawai (where many Thai's do their grocery shopping) and never saw anyone accept or try to pay with anything other than cash. 

So, I'm calling this guy's statistics BS

Online food ordering with their mobile?  Yeah right!

It is complete bullshIt.......this is just spin to promote their inept system.....

[Guest Jerry787]

Lately Bangkok Bank stop to issue VISA debit card, or at least that what a bangkok bank employee told me once i went to request a new one after i misplaced mine, they only re issue the ATM with union pay.

 

anyone knows if it may be true ? 

[wgdanson]

On 6/23/2017 at 8:35 AM, wgdanson said:

I use my Bkk Bank debit card regularly and NEVER has the cashier checked the signature I write with the one on the card, NEVER have I had to put any PIN number into any machine, except ATM of course. 

I used my Debit Card yesterday and signed the slip M Mouse. See what happens eh?

[maewang99]

how about something more interesting? 

 

how about the top 10 favorite non-fiction reading selections that the Thai people are enjoying this season?   

 

just for fun. the Thailand 4.0 stuff is just as boring as AEC 2015 was....

 

enough of it... Pasa Thai book titles.. okay.

 

 

     

 

Edited June 25, 2017 by maewang99

[richard_smith237]

Yes, I know, I'm not a cross section of Thai society, but I am an example of someone who lives in Bangkok, as are my family, and Thai and Western friends. 

 

In this cross section of people I know, in Bangkok, I see people using their Cards 'most of the time' when paying for a meal in a restaurant (or Mall restaurant) unless of course buying from the market or street food. 

When shopping, unless at a Market of MBK etc the transaction is by card. 

Shopping at Villa, Big-C, Tesco's etc a card is used. 

Shopping online, Tesco's delivery etc a card is used. 

Taxi unless using a regular taxi using *UBER and GRAB the payment is via Credit Card (Account).

Paying for Bills, TrueMove, Internet, True Visions, HDPrime, Water Bill etc - All paid with online Banking.

School Fees - Paid with online Banking. 

Fuel for the Car - Paid with a Card.

Income is received not in cash, but directly into the Bank. 

The Card is paid off at the end of the month using Online Banking.

 

The majority of our transactions are Electronic, we recently discussed this with our Thai friends who also have similar 'payment' experiences. 

 

This article, while it may not be entirely accurate for all sections of society does outline a shifting trend, a modernization of our spending methods, it is directly related to the rapidly growing 'middle class' and while some foreigners are only exposed to the poorest of society and fail to recognize that this growing middle class compete with our own levels of income / wealth it is fact that today in Thailand there are more people with exposable income than ever before and for the most part this exposable income is spent electronically rather than in cash transactions.