As nations everywhere seek to modernise their own financial and banking systems, PromptPay is a model of success for how a well-designed infrastructure can spur financial inclusion, lower costs, and drive digital economic growth. The Bank of Thailand launched PromptPay in 2016, and it has, since then, made a significant impact on the financial landscape of the country. From facilitating real-time domestic transfers to pushing regional payment integration, it has revolutionised the way people and businesses make transactions. 

This article explores what is promptpay,  how it works, what it offers, how it spreads globally, and the future it’s shaping.

What is PromptPay?

PromptPay is a real-time payment system built to make fund transfers simpler through the use of a mobile number or ID issued by the government in place of conventional bank account information. Unlike e-wallets and one-off payment apps, PromptPay is integrated directly into consumers’ existing bank accounts, providing a smooth and safe transfer process.

Users sign up by linking either their telephone number or citizen ID (for individuals) or tax ID (for companies) with their bank account. When linked, users can make transactions using the selected identifier. There will be no need to share bank account details, which not only speeds up the process but also reduces the chances of errors.

For businesses, PromptPay is a useful tool. They can receive payments immediately with the use of a simple ID, making financial operations faster and more efficient.

How Does PromptPay Work? Step-by-Step Explanation

PromptPay’s easy process is a significant reason why it has seen such acceptance:

Registration

Customers sign up through their mobile/internet banking application or at the ATM. They link their preferred ID (phone number or citizen/tax ID) with their preferred bank account.

Sending Money

The sender inputs the recipient’s registered ID through their banking app. The app retrieves the recipient’s name for verification. Once they input the amount, the sender confirms the transaction through a PIN or biometric authentication.

Receiving Money

Money is credited directly. The receiver receives an SMS or in-app notification, so they know of the transaction straight away.

Payment Flow with Thai QR Code

PromptPay also facilitates QR code-based payments, which provides flexibility for online and offline merchants.

• Mobile Browser: Consumers screenshot the QR from a payment page, upload it to their bank app, and finalise the purchase.
• Desktop Browser: Consumers scan the on-screen QR with their bank app and confirm the payment within the app.

Why Businesses Should Care: Benefits of PromptPay

Whether you are an individual, a retailer, or a multinational business in Thailand, PromptPay has unique benefits:

Instant Payments, Anytime

Transfers happen in real-time, 24/7, including on holidays and weekends, facilitating uninterrupted business and improved cash flow.

Minimal Transaction Costs

PromptPay is low-cost, with no charge for values below 5,000 THB. Even for more significant values, charges are significantly less than through conventional means:

Ease of Use

No need to recall or exchange lengthy account numbers. A phone number or Tax ID is all the user needs to make or receive payment.

High-Security Standards

Through encryption, multi-factor authentication, and fraud prevention systems, PromptPay provides safe transactions for businesses and customers.

Wide Bank Integration

Backed by large banks such as Kasikorn Bank, SCB, Bangkok Bank, Krung Thai Bank, UOB, CIMB, and others, PromptPay is made available to most of the population.

Financial Inclusion

In rural areas, in particular, PromptPay has drawn more individuals into the formal financial sector, thus increasing the potential customer base for companies.

Key Statistics Illustrating PromptPay’s Coverage

The use of PromptPay has experienced explosive growth:

• More than 2.1 billion transactions valued at 4.2 trillion THB in August 2024 alone.
• 22% increase in transaction volume over August 2023.
• Thailand had 136 million mobile/internet banking accounts by 2023, from 89.5 million in 2019.
• 77.2 million PromptPay registrations by December 2023.
• These statistics highlight the extent of adoption and trust PromptPay has throughout Thailand.

Transformational Effect on Thailand’s Economy

PromptPay is not only a payment system; it is a driver of national economic transformation:

Speeding Up the Cashless Society

A typical Thai citizen conducted 538 digital transactions in 2023, compared to 135 in 2019, demonstrating an impressive change in consumer behaviour.

Improving Business Efficiency

Companies benefit from quicker settlements, less paperwork, and improved financial monitoring, key drivers for expansion.

Spurring E-Commerce

With its safe and seamless payment experience, PromptPay has contributed to Thailand’s e-commerce growth.

Facilitating Fintech Innovation

Fintech firms are using PromptPay to innovate new products and services, driving a dynamic digital economy.

Adding to GDP Growth

Enhanced transaction efficiency across industries aids in stimulating economic growth and consumer spending.

PromptPay Global Payment Expansion

PromptPay does not stop at domestic applications. It is also part of an initiative to link real-time payment systems throughout Asia, facilitating cross-border trade and travel. Such collaborations lower the dependence on expensive remittance corridors and offer low-cost, efficient alternatives for businesses and travellers that conduct cross-border trade. Here’s how PromptPay works internationally:

Japan

Thai travellers can pay using MyPromptQR code created in their mobile banking app, accepted by Japanese retailers.

Malaysia

Interconnection with Malaysia’s DuitNow QR payment system facilitates quick transactions between the nations, a step towards ASEAN Payment Connectivity.

Singapore

The PayNow-PromptPay connection enables up to SGD 1,000 or THB 25,000 transfers per day without the need for recipient account details. There are plans to increase limits and inclusivity.

Indonesia

Thai users can read Indonesia’s QRIS codes, and vice versa, for borderless instant payments.

Hong Kong

Thai and Hong Kong consumers can pay by scanning PromptPay or FPS QR codes, which will enhance the Hong Kong and Thai retail and tourism industries.

PromptPay vs Traditional Payment Systems

PromptPay’s main advantages are its cost-effectiveness and real-time speed, which are most appealing to SMEs and start-ups.

This is how PromptPay fares compared to other payment options:

The Road Ahead: What’s Next for PromptPay?

The Bank of Thailand has a lot more in the pipeline regarding PromptPay:

• Expansion of Cross-Border Reach: Efforts are being made to connect PromptPay with Laos, Cambodia, and other nations.
• Greater Integration: Look for PromptPay to be more deeply integrated into e-commerce websites, government services, and online marketplaces.
• Advanced Features: Future improvements might encompass recurring payments, invoice management, and bill splitting, features that users will find very useful.

Conclusion

PromptPay has transformed Thailand’s way of making transactions, enabling payments to be quicker, cheaper, and more convenient. Its seamless experience, strong infrastructure, and increasing global presence are now attracting notice outside Thailand. For companies, PromptPay is not just a payment solution; it can very well be a differentiator. With the global economy increasingly moving towards digital-first experiences, it presents a compelling case study for nations and businesses that are looking to update their payment systems.