2C2P expands merchant partnerships under Alibaba’s Ant Group to boost SMEs
Aiming to enable offline small and medium-sized enterprises (SMEs) to accept e-wallet payments from Chinese visitors, 2C2P (Thailand) has been expanding its merchant partnerships under Alibaba’s Ant Group. The global payment platform predicts a substantial rise in revenue, from 3.2 billion baht last year to a projected 3.7-3.9 billion by 2024, representing a growth of 30% over 2022.
Piyachart Ratanaprasartporn, the chief executive of 2C2P (Thailand), credits the company’s growth to its payment gateway solution, which contributes to 60% of total revenue. This increase in revenue coincides with the revival of the tourism industry, the consistent rise of e-commerce, and the government’s e-receipt initiative to boost consumer expenditure.
The acquisition of a significant stake in 2C2P by the Ant Group, a company supported by Alibaba, China’s e-commerce titan, in April 2022, has also advantaged the company. 2C2P is set to become a payment gateway for Lazada across Southeast Asia, beyond Thailand.
To further its offerings, 2C2P is introducing a Tap to Pay feature to its Qwik payment solution. This feature is designed for stores with multiple branches or storefronts. Using Near Field Communication (NFC) technology, customers can make payments by merely tapping their credit cards on any Android mobile device at the storefront.
This marks a first for 2C2P in supporting offline payments for SME merchants, promoting faster and more efficient in-store sales, said Piyachart.
“SMEs who use the Qwik mobile app will save on the cost of using an electronic data capture (EDC) terminal, which could typically cost up to 10,000 baht.”
Tap to Pay
This means SMEs can bypass the need for an EDC terminal and use a mobile device compatible with Tap to Pay instead. Scheduled to launch in Thailand in the second quarter of this year, the Tap to Pay e-payment solution then be introduced to other Southeast Asian markets. The company aims to initially serve 5,000 SMEs with this new feature.
With over 150 million online transactions, the total process volume for all partners utilising its gateway solution is expected to reach 360 billion baht this year, up from 300 billion in 2023. Most of 2023’s transactions originated from marketplaces, food delivery services, super apps, airlines, direct sales, and travel.
The digital payment landscape in Thailand has undergone rapid changes in the wake of the pandemic, with the value of digital commerce jumping from US$15 million in 2020 to US$31 million in 2023 and a forecasted rise to US$51 million in 2027.
Digital wallets constitute the most widely used payment method in Thailand, accounting for 28% of the value, followed by credit cards at 24%.
2C2P (Thailand) is one of two non-bank entities participating in the pilot phase of the central bank digital currency (CBDC) implementation. Piyachart predicts that the number of payment gateway business (non-bank) operators will dwindle to five, with three major players, as others merge or are acquired, reported Bangkok Post.
