Thailand to go cashless by 2028, leads ASEAN in RTP usage

Thailand is set to transition to a cashless society more swiftly than its regional counterparts, driven by the nation’s rapid digital adoption and transformation, as per a Visa survey.

Visa, a global leader in digital payment services, recently conducted the Consumer Payment Attitude Study, which indicated that Thailand could become a cashless society by 2028. This forecast places Thailand ahead of the overall ASEAN region, predicted to reach this milestone after 2028.

According to the survey, 22% of Thai consumers anticipate a cashless society to materialise between 2026 and 2028, compared to 16% of consumers across ASEAN.

Thailand ranks third in the region for carrying less cash. The survey found that only 47% of the contents in each Thai respondent’s wallet are cash, trailing Vietnam (56%) and Malaysia (49%).

Punnamas Vichitkulwongsa, country manager for Visa Thailand, emphasised that the development stage of payment technology in each regional market significantly influences the shift towards a less-cash society. In Thailand, PromptPay, the national payment platform, has been a key driver of digital banking adoption, particularly post-pandemic.

The survey also revealed that Thailand leads the region in mobile banking app usage frequency. An impressive 97% of Thai consumers reported using mobile banking apps at least once a week, surpassing Vietnam (95%) and Indonesia (90%).

Cashless payment

Real-time payments (RTP) are growing rapidly, with 76% of Asian consumers aware of RTP and 47% having used it for fund transfers. Thailand ranks first in RTP usage frequency in the region, with 86% of respondents making at least one RTP transaction per week, followed by Vietnam (84%) and Indonesia (69%).

Punnamas credited the growth of RTP in Thailand to PromptPay, which has significantly boosted digital payments and supported Visa’s business in the market. Thai consumers have become increasingly familiar with and trusting of digital payments, including Visa credit cards.

However, Punnamas acknowledged that PromptPay’s success has disrupted Visa’s business in the Thai market, particularly in debit card services. He noted an increase in the cancellation of Visa debit cards post-pandemic, mainly due to PromptPay’s growing impact.

“Around 20% of Visa debit cardholders have not renewed their cards after they expired during the post-pandemic period. However, this ratio is expected to decrease as debit cards remain essential for certain customer segments.”

Despite the high level of household debt and limited access to credit cards for some retail borrowers, debit cards remain a crucial digital payment solution for this consumer segment.

Punnamas revealed that Visa Thailand plans to introduce Click-to-Pay, a tokenised payment system, next year to enhance card security and prevent fraud. This innovative solution aims to eliminate the need for a 16-digit card number, reported Bangkok Post.

By leveraging advancements in digital payment technology, Thailand is well on its way to becoming a cashless society, potentially setting a benchmark for the ASEAN region.