Mobile payment in Thailand expected to reach US$ 18.5 billion by 2020; TrueMoney works towards business expansion after relaxation of regulatory framework in Thailand

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Recently, Bank of Thailand eased out regulatory framework in terms of foreign exchange rules in the country which has prompted many domestic mobile payment platforms to expand their services across other markets. Towards end of Q1 2016, central bank issued the permit to e-payment license holders to act as international money remittance platforms as well. Upper limit of fund transfer is USD 0.06 million per day per user.

Subsidiary of True Corporation and e-money service provider of Ascend Group, TrueMoney has partnered with Asia Green Development Bank based out of Myanmar to extend money transfer services to this market. The service provider will allow overseas money transfer up to 200,000 bhat (approx. USD 5,725) per user per day. Fee for transaction between 100 to 5,000 baht is 50 bhat, which increases to 100 bhat for a transaction between 5,000 to 10,000 baht and goes up to 300 baht for a transaction above 30,000 bhat.

Thailand has a huge market for Myanmar migrant workers who send around USD 2.75 billion back home per year. Previously, these workers used illegal measures to send money as they did not have access to banking and financial services. With this approach, the company will have access to this unbanked segment which can prove to be a loyal customer base and a source of stable revenue generation.

TrueMoney plans to conduct 2.6 million transactions from the money remittance service, generating revenue of 6.95 million within a year from its launch. It currently has a user base of 4.1 million which is expected to rise to 5.3 million by 2017. Mobile payment service providers are diversifying their service line in order to bring in more customers and money remittance is one of the popular solutions in demand. Other players such as Advanced Info Service and Total Access Communication are already planning to work along this segment.

To know more and gain deeper understanding of mobile payment industry in Thailand, click here.