Thailand 4.0 is one of the most lucrative ventures in the country. This large-scale government project aims to transform the nation into the centre of trade and technological development in the ASEAN. And, one of the primary points of the project is to implement a nation-wide cashless payment system [Nation Multimedia].
Mobile payment options are already being used in the country. It allows users to pay for goods and services using their smartphones, which will result in a faster transaction process. But, to meet the milestone set in Thailand 4.0, the country’s banking institutions are investing more in improving infrastructure for mobile payment platforms.
As a result, this provides the perfect opportunity for keen startup business owners and venture capitalists to set up their operations in this country. Find out how investors and business owners can take advantage of the country’s push towards a cashless society on this article.
State-Owned Mobile Banking Platform for Business Transactions
As part of preparing the country for Thailand 4.0, the government seeks to transform its current financial system into a cashless economy. Their goal is to make it easier for individuals to conduct deals and pay for goods using an e-commerce platform and eventually remove physical money from circulation. In fact, there is a state-operated payment processor in the country which is intended for this purpose.
PromptPay
With over 46.5 million users, PromptPay is one of the most successful payment processors in Thailand. It is a government-owned platform that offers free transfers amongst users up to 5000 Baht.
Since its introduction in 2017, there have been more than 97 million transactions, with 370 billion Baht transferred [Bangkok Post]. Users across the country are already making use of this real-time banking system by acquiring goods and services safely.
Furthermore, using this secure banking platform eliminates the processing fees present in cash-on-delivery transactions. This will also help micro-businesses and SMEs to grow more profitable in the long term [MasterCard].
Foreign investors and business owners looking to venture in Thailand can capitalize on this platform’s reach by building companies that make use of this technology.
3 Business Ideas for Thailand’s Cashless Economy
As with every technological advancement which affects the financial sector, a cashless financial system offers new opportunities for entrepreneurs and investors. Here are some examples of companies making use of the system for their businesses.
Payment as a Service Business
In line with the Thailand 4.0 agenda, the country’s banking authorities approved The New Payment Systems Act [Chandler MHM (PDF)]. Under this initiative, the country is encouraging the growth of FinTech startups in the e-payments area to make sure that are multiple payment gateways available for both foreigners and locals. That is why startups, such as 2C2P, is finding success in the growing e-payments market [2C2P].
Interested entrepreneurs should consider forming a startup company focused on a payment as a service business model.
Related: Company Formation in Thailand: Facts about Licensing and Registration
Online Business Solutions Company
Most brick and mortar business can find it hard to adopt a cashless system. But, an E-Commerce Solutions Provider can help set up, maintain, and improve businesses that utilise mobile platforms for payments.
One example is Eternal Innovations LTD. As a Solutions Provider in Thailand, they are assisting clients like Consultec Japan and Siam Kubota Corporation using their Smart Logistics Solutions to streamline operations. They also offer to analyse sales, interpret consumer demand, and offer effective solutions for their clients.
With the rising number of brick and mortar company owners looking to prepare their business for a cashless system, starting a company which specialises in e-commerce solutions can be quite desirable.
E-Commerce Startup
One of the advantages that a cashless society offers is that online business transactions are easier to conduct. Products and services can be acquired and sold through a secure platform. As a result, an increasing number of e-commerce businesses, like QueQ, Flow Account, and Zip Event, are transforming Thailand’s financial landscape [TechinAsia].
So, given the available infrastructure and government support, starting an E-commerce company may be the ideal business for the savvy entrepreneur.
Related: What is the Ideal Business Model in Thailand
Get Corporate Advisory Solutions Before Venturing in Thailand
Thailand is becoming one of the most competitive countries in the ASEAN region due to its ambitious Thailand 4.0 project. Its push for an efficient payment model also opens up new and exciting opportunities for international entrepreneurs and investors.
But, before an aspiring businessman can begin its venture, there are several processes to undertake. And, this may take time and costly.
That is why it is ideal to get corporate advisory solutions from a trusted corporate service provider. Their team of experts can guide the client towards the most cost-efficient way to open a foreign-owned bank account in Thailand. Contact DesFran Consultancy today for corporate service solutions.
References
BoT spreading PromptPay reach, bangkokpost.com
A National E-Payment Initiative, vocalink.com
24 Business Opportunities in a Cashless Society, bigvisionideas.wordpress.com
