Ahead of a government initiative and a bold vision to drive a cashless future in Thailand, a group of bankers from Thailand’s Government Housing Bank visited Auka in Oslo this morning to hear first hand why (basically) no one in the Nordics uses cash anymore.
Giving an overview of what drove Scandinavia’s massive adoption of bank-owned mobile payments solutions, Auka’s CEO, Daniel Döderlein, presented contributing factors across Europe and predictions of what will happen in Thailand. He spoke about how, in Europe, it is PSD2 (coincidentally celebrating six months to the day since the regulations entered into force) driving a fundamental payments overhaul.
In Thailand, 90% of the population use cash. The Chairman of the Thailand e-Payment Trade Association estimates the amount of cash transactions will rapidly fall from its current level down to 50% within just two years.
With Alipay having entered the market to cater to Thailand’s largest source of tourists – people from China – there is an increased urgency for traditional payments providers (like banks) to provide an alternative to its citizens.
We learned a lot about the Thai market and shared our experience when it comes to driving cashless societies in our own part of the world. We were also hopefully able to provide a pretty good peek behind the curtains about what the future of payment looks like in Thailand.
We’re looking forward to learning a lot more about this region and can’t wait to see the progress made as the use of traditional cash falls and mobile payments rise.