New payment technologies and a rise in m-commerce drive growth in Thailand’s cards and payments sector.
|Thailand’s card industry is benefitting from a rise in m-commerce and the increasing prevalence of new payment technology, such as digital wallets and near-field communication (NFC). This uptake of new technology has been a primary driver contributing to Thailand’s card sector growing at a CAGR of 15.77% between 2008 and 2012 – from 51.5 million cards to 92.5 million – and growth is set to continue at a CAGR of 5.96% by 2017.
Technology Drives Growth
The capabilities of smartphone devices, an exponential rise in mobile device apps, and the increasing accessibility of such technology thanks to declining prices have driven a significant rise in m-commerce in Thailand. As of October 2012, there were 24 million internet users in Thailand, and 18 million smartphone users; this prompted Google to choose Thailand as the first country in Southeast Asia to launch its GoMo campaign, which encourages businesses to capitalise on the proliferation of smartphone users.
Additionally, the emergence of near-field communication (NFC) payment technology, EMV cards, and digital wallets have all enhanced the ways in which consumers transact, and have been a key driving factor in the growth of the Thai cards industry.