Payment systems in the digital economy

            We are now living in a borderless digital world. With the proliferation of the Internet and the growth of smartphones with a wide range of functions and features, financial technology has experienced “leapfrog” development, especially payment innovations such as e-money/ digital money and digital currency.

            The Bank of Thailand has prepared the “Direction for the development of payment systems under the new landscape of the Thai financial sector” to formulate a three-year strategy for the development of a payment system (2022-2024) that is in line with the new financial landscape policy for the digital economy and sustainable growth. It aims to develop electronic payment systems, effectively supporting the transition of the financial sector to a digital economy. The development of the payment systems will be carried out under three principles:

1. Openness for mutual use

Openness: Focusing on the utilization of shared payment infrastructure and data of various sectors with the aims to increase efficiency, and promote competition and innovation development, as well as increasing the role of Thai payment systems in the international arena.

2. Access to and understanding of the use of digital payment services

Inclusivity: With the goal of allowing people of all groups to have access to digital payment services on a wider scale to make digital payment the main option for Thai people, through cooperation with the government, private sector, and key payment service providers in the expansion of digital payments to meet the needs of users.

3. Resiliency-focused supervision 

Resiliency: Focusing on efficiency and avoiding widespread systemic risks.

Under this strategic plan, the BOT focuses on strengthening Thai payment systems to support the digital economy in an effective, secure, and sustainable manner, as well as supporting the development of service providers’ digital payment services. The aims are to provide users with a wide range of options based on sufficient knowledge, awareness of the risks and availability of digital payments. It also supports the transformation of business operations into a completely digital process to increase efficiency, reduce costs, and increase access to funding opportunities. This will enhance business performance, support the country’s competitiveness, and move towards a cashless society.