PaySolutions offer targets merchants

PaySolutions, a local online payment service provider, is offering cryptocurrency payment services for merchants for the first time in Thailand.

Pawoot Pongvitayapanu, chief executive of PaySolutions, said the firm has monitored the rise of cryptocurrencies, such as Bitcoin and Ethereum, as well as investment in digital assets.

“We are offering this service in a beta version for limited merchants,” said Mr Pawoot. He acknowledged the Bank of Thailand still does not support crypto payment for products or services.

“We would like to have this innovation in Thailand as many other countries have adopted crypto payment,” said Mr Pawoot.

Those wishing to make a payment can use Metamask, a cryptocurrency wallet, connected through Binance Smart Chain (BSC), while merchants can apply to use a service for receiving payments via paysolutions.asia.

The system will automatically exchange cryptocurrency and transfer them to merchants in baht. It can handle around 350 cryptocurrencies via the BSC network.

The company targets existing merchants on PaySolutions to make use of this new service, particularly those who target new generations of customers, in areas such as fashion, Mr Pawoot said.

Mr Pawoot said crypto payment is expected to account for 3-5% of total payment transactions this year.

In 2021, online payment transactions in Thailand surged 40% year-on-year, driven by various sectors, especially education, specialty and other services, entertainment, jewellery and watches, cosmetics, health and beauty.

Visa, PromptPay and Mastercard were the top 3 online payment methods, accounting for 45.7%, 30.7% and 18.9%, respectively.

According to the 2021 Chainalysis for Global Crypto Adoption Index, Thailand was ranked 12th out of 154 countries for cryptocurrency adoption by ordinary people and the focus is on use cases related to transactions and individual saving, rather than trading and speculation.

The central bank has predicted cash usage will decline over the long run, to be replaced by e-payment. In 2030, cash usage is expected to drop by 4% or 25 billion baht from 2020, and then fall by 15% or 108 billion in 2040.

Triple A, a cryptocurrency payment service provider, says over 3.6 million people in Thailand currently own cryptocurrencies.