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this is, Vietnam State Bank and the Bank of Thailand started QR payment service in March 2021. This has created an alternative for cross-border payments between the two countries.
To illustrate a practical use case for this linkage, Nguyen Kim AnnDeputy Governor of the State Bank of Vietnam, ronador Numnondahis counterpart from the Bank of Thailand participated in a live demonstration of cross-border QR payments between Vietnam and Thailand using their respective countries’ mobile banking applications.
The event marked the successful application of a cross-border payment link between Vietnam and Thailand. This made it easier for merchants, as well as customers and tourists, to make and receive payments. They were able to do it with convenience, speed, security, transparency, and at a low cost.
Additionally, the project will promote the use of local currency for payments and settlements as well.
A cross-border QR payment linkage between Thailand and Vietnam was launched by the Bank of Thailand and the State Bank of Vietnam. Participating commercial banks from both countries will both participate.
The service will allow tourists from both countries to pay for goods and services through the mobile banking applications of participating banks by scanning the two countries’ standardized QR codes, Thai QR Payment and Viet QR. . The service will serve as a fast, convenient and low-cost alternative payment method to enable cross-border transactions, marking an important milestone for the ASEAN Payment Connectivity initiative to promote sustainable growth and financial development in the region. .
According to data from Juniper research, the total number of QR code payment users is expected to grow from 1.5 billion in 2020 to over 2.2 billion in 2025. This will be his 29% of all mobile phone users worldwide in 2025.
There is no denying that this popular form of paytech will take hold. But what are the advantages of QR code payments?
Pete Jane’sCEO and Founder of paytech shield payreviews where QR payments have evolved:
Customers using digital wallets have been able to send funds directly to merchant wallets without the hassle of POS or card payments. It offers direct and easy payments for anyone with a camera.
Today, the benefits of QR codes extend beyond fiat currencies to cryptocurrencies. QR codes are currently the most efficient and popular way to send or use cryptocurrencies. , avoiding the need for terminals or third-party processors.”
Other views on the benefits of QR payments
Digital payments were common in most countries, but not in pre-pandemic Thailand.according to JP Morganof 2020 E-Commerce Payment Trends Report, e-commerce accounted for only 2% of total retail and only 23% of Thailand’s population shopped online. However, there has been a clear push towards digitization and mobile payments.
Two years later, this is more evident than ever. Google Pay Released in Japan. A luxury that other countries have enjoyed for years, his Android users in Thailand can now pay using their devices.
In addition to this, users can store credit cards and make payments with a simple tap on their phone or watch. Cardless ATMs have been introduced at many banks. Google Pay eliminates the need for users to carry credit cards. Only Bangkok Bank and KTC credit cards are accessible. according to Lifestyle Asiamore banks are expected to be added soon, as well as the ability to store debit cards.
Despite these positive changes, cash is still king in this country. It is currently 5-10% cheaper to use cash than electronic payment systems. This is mainly due to built-in fees and charges. However, Thailand shows no signs of slowing down. Joined four other Southeast Asian central banks to create cross-border payment zones that use QR codes and avoid conversion and reconversion to US dollars.
Thailand’s central bank plans to reduce cash in circulation by 50% by 2026 compared to the end of 2021. according to Thai examinerthe central bank plans to make 42% of all payments in the kingdom by digital means by the end of 2024, with one person making 800 payments per year.
Francis Bignell
