FRIDAY, March 29, 2024
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E-payments usage to be boosted by launch of TPN debit card

E-payments usage to be boosted by launch of TPN debit card

Thai Payment Network (TPN) has partnered with UnionPay International to launch Thailand’s first local-card network for processing electronic payments, in support of the Bank of Thailand’s policy that all payments by domestically issued debit cards must be

TPN targets issuing 3 million-5 million debit cards in the first year, and debit-card transactions climbing to 5 per cent of the total value of cash withdrawals from ATMs, against 2 per cent at present, TPN chairman Shoke Na Ranong said yesterday. Merchants in the Kingdom to date have been discouraged from accepting debit cards due to the high transaction fees, while cardholders are not confident about using them and have concerns about the security of the magnetic stripe, Shoke said.
However, these problems will be addressed with the launch of the TPN service, he said, adding that since the cost of making electronic payments would be lower, people would be able to use e-payments for very small purchases.
There will also be a high level of security through the use of a ‘chip and PIN’ system with a 6-digit PIN.
“Merchants and shopkeepers will have less risk as they will not need to handle so much cash, consumers will be able to make payments easily and conveniently, the government will save on administration costs, and financial service providers will be able to provide e-payments at lower fees,” he explained.
The fee for merchants accepting TPN debit cards is less than 1 per cent of the transaction value, against 1.5-1.8 per cent in general, and in the event of a cardholder using the card but the merchant does not supply the goods, they can receive their money back within 24 hours, he said. 
TPN cardholders can spend as little as Bt20 on their cards. If they spend at least Bt150, the bank issuer will send them an SMS text, and if they spend over Bt300, they will get a sales slip as transaction evidence. 
While around 95 per cent of debit-card usage is local, if a TNT debit cardholder wants to use the card overseas, they will be advised to use the TPN co-brand – UnionPay. 
UnionPay International and Bangkok Bank are TPN’s initial shareholders, on a 50:50 basis, while Kasikornbank, Krungthai Bank and Siam Commercial Bank have signed a memorandum of understanding expressing interest in becoming shareholders.
 
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