KTB, Double A start pilot project for corporate.
Krung Thai Bank has launched a corporate cash card to help companies manage their cash flow and reduce the risk of their payees holding cash.
It is starting with a pilot project. Double A (1991), an integrated pulp and paper producer and distributor, wanted the bank to facilitate cash flow with its contract farmers who supply it wood under the "Paper from Farmed Trees" project.
Anuchit Anuchitanukul, executive vice president of KTB, said yesterday that cash cards would be issued to Double A farmers who want to receive payments from the company by withdrawing cash from an automated teller machine. The farmers are not required to open an account with the bank.
Double A is bearing the cost of card issuance instead of its farmers.
Before using the cash card to get their money from the company, farmers have to wait at least two or three days.
The bank was ready to increase the functionality of the Double A cash cards, such as by making them also debit cards in the next phase if farmers so require. The cards can also be used for cross-selling products to Double A farmers in the future.
About 300,000 farmers are expected to use the card.
The bank is in talks with five more corporate customers and expects both private and state agencies to design the cash card to suit their customers and partners.
The deals would involve at least 100,000 cards for each company.
Since the country is implementing a local switching system, the corporate cash cards can also be used for payment and receipt.
Wichien Wongwas, 56, a farmer in Lop Buri and a member of the "Paper from Farmed Trees" scheme, said he was happy with the cash card because meant he did not have to hold cash that could be stolen.
"I can withdraw cash anywhere from an ATM and can check the balance at an ATM," he said.
He makes about Bt15,000 per month in extra income from selling pulp trees to Double A.
