PromptPay is a digital eWallet in Thailand, facilitating over 5.3 billion transactions. It allows users to send and receive funds via bank transfer, including making payments on their mobile phones using a QR code. The platform supports over 21 banks, including all major banks in Thailand. Developed and regulated by the Bank of Thailand (BoT), PromptPay provides a robust infrastructure solution for digital payments.

Did You Know? Thailand led all countries in real-time payment transactions per capita in 2022, with real-time payments accounting for 34% of all transactions. By 2027, the projected real-time transaction volume is expected to reach 32 billion. PromptPay, a popular eWallet in Thailand, boasts over 55 million users.

As of 2022, 62.2 million users in Thailand had registered proxies with PromptPay, a figure on par with the number of debit cards issued in the country.

Key Features of PromptPay:

• 24x7 Real-time payments
• Settlement currency: USD
• Processing currency: THB
• Real-time payment validation 
• Safe and secure network

Benefits of PromptPay:

• Convenient Fund Transfers: PromptPay offers an alternative way to receive and transfer funds securely.
• Citizen ID Integration: Users can link their Citizen ID to receive funds from the government, such as tax rebates, welfare payments to senior citizens, and support allowances.
• Mobile Phone Number Integration: Users can link their mobile phone number to transfer and receive funds between individuals. This eliminates the need to remember account numbers and reduces transfer fees. The fees are the same for inter-bank and inter-region transfers.
• Easy Registration: Users can register for PromptPay and connect their savings or current account with either their Citizen ID or mobile phone number, or both, using various channels provided by the bank. There is no fee for PromptPay registration.
• No Need for Sender Registration: Those transferring funds using a Citizen ID or mobile phone number do not need to register for PromptPay. They can transfer funds via PromptPay using their bank’s convenient channels. Recipients, however, must register to connect a bank account with their Citizen ID or mobile phone number.

PromptPay's infrastructure and regulatory framework, supported by the Bank of Thailand, ensure that it remains a secure, convenient, and widely adopted payment solution in the country.

Imagine two businesses, ThaiTech Solutions and Bangkok Retailers. ThaiTech Solutions needs to pay Bangkok Retailers for a bulk order of electronics. Using PromptPay, ThaiTech Solutions initiates the payment through its bank's mobile app. They enter Bangkok Retailers' PromptPay ID, which is linked to their business registration number, and the amount to be transferred. The payment is processed instantly, and Bangkok Retailers receives the funds in their account within seconds. This efficient and secure transaction allows Bangkok Retailers to continue their operations without delay and ensures ThaiTech Solutions meets its payment obligations promptly.

Advantages and Disadvantages of PromptPay

PromptPay offers several advantages, including real-time fund transfers that are available 24/7, enhancing convenience for both individuals and businesses. It reduces the need for physical cash and paper-based transactions, contributing to greater financial inclusion and efficiency. Additionally, PromptPay supports multiple types of identifiers, such as mobile numbers and national ID numbers, making it easy to use. 

However, PromptPay also has some disadvantages. While it facilitates low-cost transactions, there may still be fees for certain types of transfers or higher amounts, which can add up for frequent users. Additionally, the reliance on digital platforms means that users need stable internet connectivity, which might not be uniformly available in all areas, potentially limiting its accessibility.

Curious to know the cost of sending supplier payments to Thailand using local payment rails like PromptPay through Finofo?

Check it out here – finofo.com/tools/send-money/thailand