Tepa urges allowing non-bank providers
The Thailand E-Payment Association (Tepa), an assembly of non-bank service providers, is urging the Bank of Thailand and policymakers to open the standardisation of quick response (QR) code payment and authentication of the “know your customer” (KYC) identity verification process to non-bank service providers, reducing operating cost and promoting the national e-payment scheme.
The association is in talks with the regulator to open the standard for sharing infrastructure among e-money providers and non-bank players, said Punnamas Vichitkulwongsa, chairman of Tepa and group chief executive of Ascend Group.
Tepa wants QR code standardisation to cover mobile payments that the central bank has already endorsed for commercial banks.
There were 50 million smartphones used in the Thai market last year, and that figure is estimated to grow to 80 million by 2021 as consumer lifestyles change. E-payment has become a daily activity.
As a result, electronics payment providers believed it was necessary to band together, establishing Tepa on Feb 5, 2016, to upgrade the country’s e-payment industry to global standards and boost confidence in the platform among Thai consumers.
“We estimate over the next two years, mobile payment will gain more momentum after implementing QR code standardisation,” Mr Punnamas said. Mobile payment accounts for 10%-30% of the total, while cash has dipped to 50-70%, he said.
Tepa also asked involved parties to share KYC information, which is a process of business verification of customers. The shared information among banks and nonbanks makes it more convenient for customers and service providers, removing the need to re-apply.
“KYC has been a paper-based process, but a sharing service will make it more convenient and reduce the investment cost for electronics providers,” Mr Punnamas said.
He said e-payment is a part of Thailand 4.0 policy and the government’s attempts to create a cashless society. E-payment has greatly advanced in China and India, while Sweden is close to becoming a cashless society, said Mr Punnamas.
Tepa was registered with the purpose of supporting the e-payment industry, aiding its members in any disputes, and centralising communication and cooperation with third parties. The association has 16 members, both operators of e-wallets and e-money card providers.