25% of credit card users make minimum payments

The results also show that mutual funds are the most popular investment choice and six out of 10 are tapping online banking services.

Based on responses from more than 28,000 Internet users in 56 countries, cash is king for Asia-Pacific consumers when paying for general expenses. More than half use credit cards as a common payment method.

In Thailand, 61 per cent own a credit card, preferring to use it over cash. Debit cards, although not as widely used as credit cards, are the most popular among consumers in their 20s, with one out of four using them for general payment.

Suresh Ramalingam, managing director of Nielsen Thailand, said yesterday that paying with cash was deeply ingrained in many cultures around the world where payment for goods and services was immediate.

"However, although cash still dominates, plastic is increasingly replacing cash as a payment tool. As wealth accelerates for consumers in emerging markets and payment terminals increase, we will see more acceptance of electronic payment methods over cash," he said.

Despite the popularity of credit cards, at the time of payment, Thailand is the top country in Asia-Pacific and the seventh in the world where consumers are not prepared to repay the full billing amount. One in four Thais claims to have paid only the minimum in the past three months, while 2 per cent are paying even less.

Inconsistent with the general sentiment in Asia and the Pacific where stock investment is the most popular, 64 per cent of Thais prefer mutual funds and trusts as their first choice, while stocks and gold or other precious metals tie for second at 45 per cent.

Interest in investing in mutual funds is higher among consumers aged 35-60, with 25 per cent more male buyers than female.

Stocks also attracted 30 per cent more male investors than female, but gold and other precious metals were 33 per cent more popular among female investors.

According to NM Incite, a Nielsen social-media listening platform, online discussions on investing in mutual funds spiked during the year-end when the tax-calculation period was closing in, and remained the topic of discussion throughout the period when tax returns are submitted.

"The government’s policy on various tax-deductible funds in Thailand most likely plays an important role in the popularity of mutual funds among earning Thais," Suresh said.

Men tend to be more receptive to investment risk, which explains their higher interest in stocks, while women are generally more cautious, so gold and other precious metals are their preference.

About 78 per cent of consumers still physically go to the bank for various financial activities, but online banking is gaining popularity as the second choice at 60 per cent, especially among consumers aged 30-39. Seventeen per cent more women prefer physical banking over online, while 22 per cent more men opt for online over physical banking. Mobile banking, most popular among Thais under 20, comes in third at 34 per cent.

"Online banking rivals physical branch banking around the globe, especially in Asia and the Pacific," Suresh said.

Despite concerns over security, consumers are seeking information through their mobile phones for investment decisions. The adoption of this platform is greatest among younger age groups and as smart-phone penetration accelerates, mobile usage for investment decisions is expected to grow accordingly.

It could become a vital tool for making swift investment transactions and capturing different investment opportunities on the go.