Startups urge inclusion in Thai digital wallet scheme

Startup communities are urging the Finance Ministry to include them in the government’s upcoming digital wallet scheme. They see this as a pivotal chance to promote the adoption of digital technologies among small and medium-sized enterprises (SMEs), fostering digital transformation.

President of the Thai Startup Trade Association Yutthana Srisavat, alongside Pawoot Pongvitayapanu, a leading figure in the startup ecosystem has petitioned Deputy Finance Minister Julapan Amornvivat to ensure local startups are integrated into the digital wallet initiative.

While Pawoot disagrees with the scheme, he believes that if it proceeds, startups should be involved to assist entrepreneurs in enhancing their technological capabilities.

Pawoot added that entrepreneurs should be encouraged to implement point-of-sale (POS) technology, e-document or e-tax systems, and other digital tools to boost their operations and productivity.

Yutthana added that local startups proposed to the Finance Ministry to take the digital wallet scheme as an opportunity to help SMEs move towards digital transformation.

The Thai Startup Trade Association, which has 200 members, sees this as a chance to replicate the success of previous government initiatives like the co-payment scheme, which popularised e-payment methods.

Adopting technology

Businesses accepting digital wallet payments should be incentivised to adopt accounting, POS, e-tax, and other systems from association members. Options could include no fees for small transactions or fee-based services for larger transactions, said Yutthana.

“Besides sources of funds, startups need to have a market where we can find the fish.”

Yutthana highlighted the need to transform Thailand from tech users to tech creators, believing this scheme presents a prime opportunity to achieve that goal.

Chief Executive of Line Man Wongnai Yod Chinsupakul, sees the digital wallet scheme, which aims to cover 50 million users, as a catalyst for increased consumption of food and services.

He advocates for government support in integrating local startup technologies, such as POS systems and merchant management tools, among SMEs.

This would help build a robust tech ecosystem for local businesses and advance Thailand’s digitalisation.

Previous successes

Yod pointed out that Line Man Wongnai’s participation in the previous government’s co-payment scheme has equipped the company with the experience and technological readiness to support merchants and tech users.

“We can share this experience with policymakers to optimise the digital wallet scheme.”

From 2021 to 2022, the company’s involvement in the co-payment scheme boosted consumer spending both offline and online, connecting consumers with local merchants and increasing their revenue.

The success of PromptPay illustrated effective collaboration between the government, the Bank of Thailand, commercial banks, and private sector entities, said Yod.

“Innovation is not just about technology development but also about incorporating tech into business.”

This push from the startup community highlights the potential for the digital wallet scheme to drive technological adoption among SMEs, integrating technology into business operations and fostering a more digitally integrated economy, reported Bangkok Post.