An interbank mobile payments system, PromptPay, was launched in Thailand in January 2017. PromptPay is one of several initiatives undertaken by the Thai Government as part of its National E-Payments Initiative. PromptPay enables registered customers to transfer funds using a mobile phone with only the mobile number or citizen ID number of the recipient. It can also be used to receive government payments such as social security benefits, pensions, and tax refunds. The National E-Payments platform will be based on the AnyID system, which enables people without a bank account to transfer money and make payments using a mobile phone and ID. Other modules include expansion of electronic data capture (EDC) machines to service e-payments and an e-tax system. All companies in Thailand are obliged to enter into the National E-payments Initiative by 2019 to stem tax evasion and increase Government revenue. Singapore’s authorities are in discussion with those in Thailand to connect its PayNow digital payment system with PromptPay, to forge a regional alliance aimed at curbing the use of cash.
Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.
Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.
The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2