Thais use more electronic payments and shy away from cash for safety reasons
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Thais are becoming increasingly confident in using electronic payments, as cash is seen as a hassle and unsafe to carry around, according to Visa’s research.
In its third instalment, the 2016 Visa Consumer Payment Attitudes Study tracks the current attitudes consumers have on electronic payments and identifies trends in payments behavior in six Southeast Asian nations. Of those surveyed in Thailand, 73 percent said they used electronic payments, including cards, mobile devices and wearables, more often than cash, deliberately moving away from notes and coins.
Emerging affluent were the heaviest users of electronic payments (83%) compared to the mass market at 68 percent. The main reasons cited for carrying less cash were the lack of safety (60%), up from 57 percent in 2015; and easy access to cash withdrawals (48%), up from 38 percent 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%) prefer to automate payment, eliminating the entire physical process of paying. 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,” said Suripong Tantiyanon, Visa Country Manager, Thailand.
New ways to authenticate payments are also a draw for Thais: 75 percent 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 percent of which have no problem relying on biometrics, compared to 70 percent of Generation X.
“Emerging affluent were the heaviest users of electronic payments (83%) compared to the mass market at 68 percent.”
“There is clearly a growing appetite for electronic payments in Thailand. 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 percent of respondents would choose contactless payments over cash, if merchants offer them,” said Mr. Suripong.
Electronic payments for on-demand services, like meal delivery, grocery delivery, transportation, and travel too are shaping up in Thailand.
According to the Visa Consumer Payment Attitudes Study, 54 percent of respondents have used on-demand delivery service in Thailand in the past 12 months, with 29 percent having used it 2-3 times a month. The most popular category was food delivery with 3 in 4 respondents (75%) having used their mobile device to order food online. Cash is currently the main payment method at 71 percent, but electronic means are catching up. Half the respondents (47%) said they would use payment via “card on file” or credit card registered with the app while 56 percent 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%). 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 Mr. Suripong.
Questions & Answers
Q.What is the primary reason Thais are moving away from using cash?
What is the primary reason Thais are moving away from using cash?
Thais are carrying less cash mainly due to concerns about safety, cited by 60% of respondents. Easy access to cash withdrawals also contributes, with 48% mentioning it as a reason for their preference.
Q.Which demographic group in Thailand is most enthusiastic about biometric payment technology?
Which demographic group in Thailand is most enthusiastic about biometric payment technology?
Generation Y shows the most enthusiasm for biometric payment technology, with 79% comfortable using it. This compares to 70% of Generation X, indicating a generational split in comfort with these methods.
Q.What percentage of Thais would choose contactless payments if they were offered by merchants?
What percentage of Thais would choose contactless payments if they were offered by merchants?
A significant majority of Thais, 82% of respondents, would choose contactless payments over cash if merchants provided the option. This highlights a strong consumer preference for convenient payment methods.
Q.How do Thais primarily pay for on-demand delivery services currently?
How do Thais primarily pay for on-demand delivery services currently?
Cash is currently the main payment method for on-demand delivery services in Thailand, used by 71% of respondents. However, electronic methods are gaining traction, with mobile wallets upon delivery being preferred by 56%.