Promptpay, Prizes & Edcs In Govt Push For Cashless Society – Thai Law And Company Specialist

In the middle of each month through until May 2018, winners will be randomly chosen by the ministry via a prize draw. The top reward is a Bt1 million gift check, with Bt100,000 as the second prize and Bt30,000 as third prize.

The government, under the national e-payment plan, wants to convince all sectors to switch from cash-based payments to electronic transactions. In a recent national broadcast, Thai prime minister Prayut Chan-o-cha said the government wanted to encourage the general public to use the e-payment system, through the introduction of PromptPay.

The national money transfer and e-payment system, PromptPay was launched in late January of this year for individuals and expanded to include juristic persons on 1 March. It facilitates money transfers by linking an individual's ID card number and/or mobile phone number to his or her bank account.

According to The Thai Bankers' Association PromptPay – a collaboration between the government and banks – has been a great success. The service is now reported to have around 29 million mobile phone numbers registered as users, with 11.5 million transactions having been made. The total amount of money flow was Bt69 billion, of which Bt19 billion was the transfer of benefit payments from the government to people.

Along with encouraging the public to use debit cards instead of cash to make payments, the government is also trying to widen the use of electronic data capture or EDC machines at points of sale throughout the country, in its push for a cashless society.

Banjongjitt Angsusingh, the director-general of the Department of Business Development, said in April 2017 the department had issued an announcement encouraging businesses which receive payments from customers to install at least one EDC machine as another payment option available to the public. The machine's cost and installation fee would be waived and a business would be eligible for tax privileges as specified by the Revenue Department.

Business and shop operators can apply for an EDC machine from providers certified by the Finance Ministry. Among these is Bank of Ayudhya or Krungsri, which promotes its EDC service on its website as “…another distribution channel and growth opportunity in addition to cash payment.”

The government is also on a mission to promote digital technology, and as part of this it wants to see the launch of more online businesses. The goal is for one million new online businesses by the end of 2017, and cooperation between the education, agricultural and commerce ministries to help new start-ups as well as farmers, cooperatives, community enterprises and SMEs learn more about digital technology is aimed at helping achieve this.

Meanwhile the Department of Industrial Promotion has introduced five free apps for use on mobile phones and tablets, with the aim of encouraging businesses to use online communication channels. The five apps are Money Flow, Billing Flow, Stock Flow, Business Evaluation and DIP Business Plan.

“With its 'Thailand 4.0' approach, the government wants to see Thailand become a high income nation and a digital based society for sustainable development”, said the spokesman for BSA Law, a leading international law firm in Thailand established over three decades ago.

With a highly experienced team of lawyers, special advisers and support staff, the firm offers a comprehensive range of commercial and corporate legal and financial services to the Thai and foreign communities in Thailand. Areas of particular emphasis and expertise at BSA Law include company law, Thai labour law, Thai law in general, intellectual property, real estate, investment, contracts, notarization and certification, insurance, starting a business in Thailand and taxation, accounting and auditing services. Its Thai visa service desk specializes in Thailand work permit and visa matters.