Tencent eyes Thai market for palm biometric payments in race with Alipay

Tencent is ramping up its drive to win market share in Southeast Asia and its palm biometrics initiative, merging security with convenience, has the potential to redefine payment norms, explains Arnie Cho

May 28, 2025

Palm payments address tourist frustrations with cash reliance and currency exchange, while reducing fraud risks for merchants Image credit Natasa Adzic/shutterstock

Tencent is positioning Thailand as a testing ground for its palm biometric payment system, aiming to capitalise on the nation’s digital transformation push and “Cloud First” policy. The move signals a strategic play to outpace rival Alipay in Southeast Asia’s rapidly expanding fintech sector.

Thailand’s alignment with cloud infrastructure priorities and corporate demand for secure, scalable solutions makes it an ideal launchpad. Partnerships with local tech players including MFEC and True IDC further bolster Tencent’s entry. Beyond Thailand, the company views the market as a gateway to Association of Southeast Asian Nations (ASEAN) neighbours such as Indonesia and Malaysia, where similar security and scalability needs in commercial payments are growing in importance.

The tourism sector—a pillar of Thailand’s economy—could see immediate benefits. Palm payments address tourist frustrations with cash reliance and currency exchange, while reducing fraud risks for merchants. Trials with SCB, The Mall Group, and 7-Eleven have already showcased the system’s viability, mirroring biometric payment trends such as Amazon One in the US and Alipay’s PL1 in Southeast Asia.

Tencent will face stiff competition, with Alipay’s aggressive promotion of its PL1 palm biometric payment system underscoring the intensifying battle for regional dominance. Yet Tencent’s existing WeChat Pay foothold and first-mover advantage in Thailand’s tech-friendly ecosystem could prove decisive. By tailoring solutions to local tourism pain points, the firm aims to establish a blueprint for broader ASEAN expansion.

As Thailand accelerates its digital shift, Tencent’s palm biometrics may redefine payment norms, merging security with convenience. The outcome of this fintech rivalry will shape not only Thailand’s economic landscape but also Southeast Asia’s race toward a cashless future.

Arnie Cho is a senior analyst, payments, at GlobalData