Tech experts say Thais must adopt personal digital wallets

The group includes Nares Laopannarai, president of the Thai Digital Assets Association, Phromthep “Dave” Malhotra, CEO and co-founder of Sold Outt, Sanjay Popli, co-founder and CEO of Cryptomind Group, and Sarita Singh, Stripe’s regional head and managing director for Southeast Asia.

Their comments come as the country is embroiled in the contentious issue of the government’s 10,000 baht digital wallet scheme but, they stressed, their opinions were solely focused on the need for a digital wallet from the standpoint of the digital economy and did not relate to either politics or economics.

According to these experts, digital wallets are no longer a luxury but a strategic necessity for Thailand’s financial evolution, bringing with them a slew of benefits ranging from financial inclusion to enhanced cybersecurity.

Digital wallets simplify financial transactions, making them faster, more efficient, and less stressful. The convenience of digital wallets cannot be overstated in a country known for its vibrant markets, bustling streets, and diverse economic activities.

Adoption of digital wallets can improve transaction efficiency at all levels of the economy, from street vendors to large retailers, they said.

Furthermore, they pointed out that the widespread adoption of digital wallets could benefit Thailand’s economic growth. Digital wallets can attract investment, stimulate entrepreneurship, and facilitate the growth of small and medium-sized enterprises (SMEs) by promoting a more efficient and transparent financial system.

The ease of conducting business transactions via digital wallets may also entice foreign investors looking for a technologically advanced and business-friendly environment, they said, adding that by embracing digital wallets, Thailand can bypass traditional banking infrastructure and move directly to cutting-edge financial technologies, thereby positioning the country as a regional leader in digital finance to attract global attention and investment.

Thai Digital Assets Association president Nares stressed that the association supports the country’s adoption of digital wallets as an alternative financial system because the move will mark the beginning of a strong fundamental infrastructure for a new financial system based on blockchain.

Noting that this infrastructure will pave the way for the digital economy in the new era, he pointed out that the government should collaborate closely with the private sector to add more value to this digital wallet.

Sold Outt’s Phromthep agreed, saying that the government should take advantage of its authority to empower Thai developers and creators.

He suggested that instead of just a wallet app, an open-source platform could be introduced to allow start-ups and developers to roll out ideas or solutions to any pain point.

Furthermore, having a national digital wallet would undoubtedly allow new business models to thrive in Thailand helping to boost the country’s digital economy.

He added that creating a digital wallet that is more than just an app will enable the usefulness of this digital wallet and encourage further use.

Cryptomind Group’s Sanjay was more cautious, warning that to achieve national digital wallet status, Thailand must first address a few issues.

First, some laws and regulations must be updated to keep up with the modern digital economy. Meanwhile, regulatory changes should be thoroughly discussed with the private sector. This will make it easier for the country to improve.

Another issue, he noted, is educating people about the fundamentals of the digital industry and how to use innovations and technologies to their advantage.

Meanwhile, as the world’s leading e-payment system provider, Stripe’s regional head Sarita confidently predicted that the role of digital wallets and other e-payment will grow in tandem with the expansion of the e-commerce industry and other business models in this digital economy.

She acknowledged that she was not in a position to provide advice, but listed some pillars vital to supporting any type of national payment system.

The first, she said, relates to stability, security, and uptime. “If it's going to serve millions of people and diverse communities, it needs to be inclusive, stable, and offer a variety of different experiences, even if it’s a digital solution.”

The second pillar is innovations. Sarita stated that many regulators in Southeast Asia including Thailand are already interested in any potential use cases for digital wallets or something similar and described the move as “very forward-thinking”.

A further factor is to consider the digital wallet as an ecosystem rather than just for domestic use. Given that people can now easily travel across regional borders, they must use digital wallets in places other than their homes.

Still, when compared to other regions, Sarita that Southeast Asian regulators are incredibly inspiring.

Thailand’s Board of Investment has made it clear that although the country has been manufacturing-based for decades, the time has come to transition to future industries by leveraging digital technology to improve production efficiency and competitiveness. By 2027, the digital economy is expected to contribute 25% of Thailand’s GDP.

In addition, as the payment landscape has shifted to digital, a Juniper Research Study discovered that the global number of digital wallets will grow exponentially by 2026, with a whopping 53% growth rate. The figure was 3.4 billion in 2022, and it is expected to rise to 5.2 billion in 2026.

As a result, digital wallet adoption in Thailand is a strategic imperative for the country’s economic and financial development, the experts stressed.

As Thailand looks ahead, adopting digital wallets will not only keep the country competitive in the global market, but will also pave the way for a more inclusive, efficient, and technologically advanced financial landscape.