Launched QR payment link project in Vietnam and Thailand
Vietnam and Thailand officially launched the QR payment linkage project, chaired by SE Nguyen Xuan Phucthe President of the Socialist Republic of Vietnam, as well as Arkhom Termpittayapaisiththe Minister of Finance of Thailand.
It came after the State Bank of Vietnam and the Bank of Thailand launched their QR payment services in March 2021. This has created an alternative means of cross-border payments between the two countries.
To illustrate the practical use case of this link, Nguyen Kim AnhDeputy Governor of the State Bank of Vietnam and Ronadol Numnondaits Bank of Thailand counterpart, participated in live demonstrations of cross-border QR payments between Vietnam and Thailand, using mobile banking applications from their respective countries.
This event showcased the successful application of cross-border payment link between Vietnam and Thailand. It enabled customers and tourists as well as merchants to make and receive payments. They were able to do so with convenience, speed, security, transparency, and at low cost.
In addition, this project also promotes the use of local currencies for payments and settlements.
The cross-border QR payment link between Thailand and Vietnam was launched by the Bank of Thailand and the State Bank of Vietnam. The participating commercial banks of the two countries will both participate.
This service allows tourists from both countries to make payments for goods and services through the mobile banking apps of participating banks by scanning the two countries’ standardized QR code, namely Thai QR Payment and VietQR. The service serves as a fast, convenient and low-cost alternative payment method to enable cross-border transactions and marks a milestone for ASEAN’s payment connectivity initiative to promote sustainable growth and regional financial development.
Benefits of QR Payments
According to data from Juniper To researchthe total number of QR code payment users is expected to exceed 2.2 billion in 2025, compared to 1.5 billion in 2020; equivalent to 29% of all mobile phone users worldwide in 2025.
There’s no denying that this popular form of paytech is here to stay. But what are the benefits of QR code payments?
Rock JanesCEO and founder of paytech Shieldreviewed where QR payments developed: “In the world of payments, the benefits of QR codes were first realized in Asia, when small traders or street vendors used them due to the lack infrastructure for point-of-sale systems.
“Customers with digital wallets were then able to send funds directly to merchant wallets, without the hassle of point-of-sale or card payments. These same benefits apply worldwide, offering direct and simple payments to anyone with a modern phone camera.
“Today, the benefits of QR codes extend beyond fiat currencies and even to cryptocurrencies. QR codes are now the most efficient and popular way to send or spend crypto. This , again, bypasses the need for terminals or a third-party processor.
Thailand is going digital
Digital payments were commonplace in most countries, but that was not the case in Thailand before the pandemic. According JP Morganit is 2020 E-Commerce Payment Trends Report, e-commerce accounted for just 2% of overall retail, with only 23% of Thailand’s population shopping online. However, there was a clear drive for digitization and mobile payments.
Two years later, this is more evident than ever, because Google Pay launched in the country. A luxury other countries have had for years, Thai Android users can now pay using their devices.
On top of that, users can store credit cards and make payments with just a tap of the phone or their watch. Cardless ATMs have been introduced by many banks: Google Pay means that users will no longer need to carry credit cards. Only Bangkok Bank and KTC credit cards have access. According Way of life Asiahopefully more banks will be added soon, along with the ability to store debit cards.
Cash is King
Despite these positive changes, cash remains king in the country. Currently, it is between 5 and 10% cheaper to use cash than electronic payment systems. This is largely due to their built-in fees and charges. Thailand, however, shows no signs of slowing down in its digitization. It has joined four other Southeast Asian central banks in creating a cross-border payment zone that uses QR codes and avoids converting and reconverting to US dollars.
The Central Bank of Thailand is moving forward with a plan to reduce cash in circulation by 50% by 2026 from the end of 2021. According Thai Examinerthe Central Bank expects 42% of all payments in the kingdom to be made through digital means by the end of 2024, with each person making 800 such payments in a year.