SCB pushing QR code transactions

Siam

Commercial Bank (SCB), the country’s second-largest mobile banking service provider, aims to significantly increase the average monthly transaction value of its QR code payment this year to 5 billion baht.

Transaction volume via the digital payment is around 3 billion baht per month, while total transaction numbers have been above 1 million per month. The bank targets 5 million transactions a month by the end of the year, said Pimjai Tongmee, executive vice-president for payments, products sales and delivery.

To encourage more transactions, the bank plans to expand mid- to large-sized merchants that use the bank’s QR code payment after largely focusing on small vendors.

There are around 1 million merchants that use SCB’s QR code payment and 30% of them are active.

The bank, which rolled out QR code payment last year, aims to raise the number of merchants using its QR code service to 1.5 million and the ratio of active merchants to 50% by the year-end.

SCB is ahead of the curve on transferring its customers to the digital platform as online banking has lower operating costs and can better access to clients. Moreover, digital baking allows the bank to analyse customer behaviour and launch customised financial products to serve their needs.

As of June, SCB Easy, the bank’s mobile banking app, had 7 million users, with the bank targeting 10 million by year-end.

Kasikornbank (KBank) has targeted 10.4 million users to use its mobile banking app, K Plus, this year, from 8.4 million.

“We plan to spend marketing budget worth of around 50 million baht to promote QR code payment in the second half of this year in a bid to meet the target,” she said.

SCB, has also eyed launching credit card-based QR code payment, which is undergoing testing in the Bank of Thailand’s regulatory sandbox.

The bank, in collaboration with SF Cinema and Mastercard Thailand, yesterday introduced QR payment via SCB-Mastercard credit cards at all SF Cinemas nationwide.

She said the bank will expand digital payment to cover all market segments and transform the country into a cashless society.

Typically, credit cards deal with larger payments than debit QR code and cash. The adoption of credit cardbased QR code payment would further propagate cashless payments.

The bank plans on partnering with other firms to expand cashless payment services.

SCB shares closed yesterday on the Stock Exchange of Thailand at 125 baht, up 2.50 baht, in trade worth 972 million baht.