KBank launches Cross-Border QR Payment Service between Thailand and Lao PDR
KASIKORNBANK (KBank) has pioneered the launch of a QR Payment service between Thailand and Lao PDR, while also planning to expand its connection to India by the end of this year.
The current countries/territories where foreign tourists can use mobile banking to scan Thai QR codes for payment include Malaysia, Hong Kong, Indonesia, Singapore, Cambodia, Vietnam, and most recently, Lao PDR.
This year, the Bank aims to achieve a 30% growth in the use of its international QR payment system, driven by Thailand's expected increase in foreign visitors, which is anticipated to surpass 36 million.
Pipatpong Poshyanonda, President of KBank, stated, "KBank plays a pivotal role as a settlement bank for international transactions, facilitating cross-border QR payment services between Thailand and Lao PDR. This initiative is part of the collaboration between the Bank of Thailand and the Bank of the Lao PDR (BOL) to enhance the efficiency of international financial infrastructure, enabling seamless connectivity within the region under standardized protocols. Besides enhancing customer convenience and satisfaction, this service aims to lower cross-border financial costs. Furthermore, the Bank intends to expand its QR payment service connection with India by 2024."
In 2024, KResearch forecasts that international tourist arrivals in Thailand will exceed 36 million, creating an opportunity for businesses to boost their revenue through the recovery of Thai tourism.
This can be achieved by leveraging the cross-border QR payment service, which allows businesses to accept payments from foreign tourists for goods and services.
KBank's merchants can utilize QR codes on the K SHOP application and the Bank's Electronic Data Capture (EDC) machines to accept payments from tourists originating from seven countries/territories: Malaysia, Hong Kong, Indonesia, Singapore, Cambodia, Vietnam, and most recently, Lao PDR.
This offers convenience to tourists as they can avoid the need to exchange or carry large amounts of cash, opting instead to use their mobile banking apps from their home countries. Thai merchants can seamlessly accept payments without complications, enabling foreign customers to scan QR codes and make payments just like Thai customers.
Merchants will receive payments in Thai Baht at the actual price of the items, eliminating concerns about exchange rates and fees. Furthermore, K SHOP merchants can benefit from the voice notification feature, simplifying and accelerating the tracking of incoming funds.
Pipatpong noted that KBank's cross-border QR payments currently represent over 40% of the market volume. The bank boasts more than 2 million service points nationwide, with restaurants leading in payment volume, followed by fashion items, reflecting tourists' spending patterns. After launching the service for Lao tourists this year, the bank aims for a 30% increase in international QR payment transactions compared to the previous year.
