The Bank of Thailand (BOT) has made a proposal to overhaul its payment system standards to minimise glitches in the digital banking sector.
This move comes as the central bank publishes a new paper, titled ‘Directions for Development of Payment Systems Under the New Financial Sector Landscape of Thailand’.
The paper includes Thailand’s payment systems development strategy covering the 2022-2024 period. The strategy aligns with the policies related to the country’s general financial sector.
This paper also outlines the significance of electronic payment systems in transforming Thailand’s economy digitally.
According to the BOT, creation of the proposed payment system will have three major principles, openness, inclusivity, and resiliency.
It will finally result in the promotion of digital payments as the preferred mode of transaction by the consumers.
In addition, it aims to upgrade the quality of life as well as support competition and transform Thailand into a ‘less cash’ society.
BOT assistant governor for payment system policy and financial technology group stated that the bank aims to execute the payment system standard modification in the fourth quarter of this year, reported local news agency NNT.
In addition, BOT forged alliances with banks and digital payment infrastructure systems provider National ITMX to supervise financial transactions and let banks know when any systemic problem arises.
At present, a consumer performs an average of 370 digital transactions per year in Thailand owing to the popularity of PromptPay service.
BOT has estimated that this figure might go up to 800-1,000 transactions annually in three years.
The bank also partnered with regional central banks to link their digital payment networks under the ASEAN Connectivity strategy in order to enhance its digital payment services’ reach to other ASEAN nations and Asia.