Visa seeks to provide debit cards under local scheme

The Bank of Thailand is considering Visa Thailand’s application to provide debit cards under the local scheme, says senior director of onsite examination department Siritida Panomwon Na Ayudhya.

If Visa wins the central bank’s nod, the international payment network provider will become the third local card scheme service provider. The service will enable it to capitalise on the promising debit card payment market after the government’s electronic data capture expansion plan under the national e-payment scheme is completed.

Visa has offered payment network service in Thailand for 20 years through an international platform. There are around 30 million credit and debit cards bearing the Visa logo.

Under central bank regulation, only those on a local card scheme can provide payment network service for debit cards issued and swiped in Thailand. Currently, there are two such providers — Thai Payment Network Co (TPN), a joint venture between Bangkok Bank (BBL) and China’s UnionPay International, and National Interbank Transaction Management and Exchange (National ITMX).

Mastercard has announced plans to roll out co-badged PromptCard debit Mastercard, which will allow cardholders access to debit networks provided by National ITMX locally and Mastercard internationally. Four banks — Siam Commercial Bank, Thanachart Bank, Citibank, and UOB Thai — are due to launch the card this month.

Thakorn Piyapan, head of digital banking and innovation at Bank of Ayudhay (BAY) and head of Krungsri Consumer Group, BAY’s unsecured loan unit, said the bank plans to launch a debit card with Visa soon.

“Initially, we plan to launch Krungsri-Visa debit card under the local card scheme around the third quarter of the year,” he said.

Krungsri has around 4 million Visa cards covering both ATM and debit cards. It plans to expand further the debit card base under the local platform.

Meanwhile, Shoke Na Ranong, BBL’s executive vice-president and manager of credit card division, said the bank implemented the local debit card scheme last year. It has issued 3 million such cards, and expects the number to increase.