Thailand’s digital wallet stimulus plan has suddenly become less digital.
As Reuters reported Tuesday (Sept. 3), Prime Minister Paetongtarn Shinawatra said the government’s planned 450 billion baht ($13.1 billion) “digital wallet” handout will be distributed in cash, a change from the government’s flagship policy.
Initially, the government would have transferred 10,000 baht ($292) in credit to 50 million people using a smartphone app to spend in their communities within six months. The report said it’s not clear how much of the funding would not be distributed in cash.
The stimulus, which had been the ruling Pheu Thai Party’s chief election platform, is designed to jumpstart an economy that trails other countries in the region, the report added. The Thai economy grew 2.3% in the second quarter of this year, though analysts said uncertainty around fiscal policy clouded the country’s outlook.
Reuters also noted that economists and two former central bank governors have called the handout program fiscally irresponsible. The has delayed the scheme, expected to be rolled out in the closing quarter of the year, due to funding issues, the report added.
Whatever the outcome of this issue, research by PYMNTS Intelligence has shown that Thailand’s residents are proponents of digital payments. The country led all other nations surveyed in real-time payment transactions per capita in 2022, with the payment method making up 34% of all transactions.
“Thanks in part to the increasing popularity of the PromptPay scheme among Thai consumers, experts anticipate even more growth ahead,” PYMNTS wrote last year. “Projections suggest Thailanders will conduct 32 billion transactions via real-time payments in 2027.”
PYMNTS recently spoke with a panel of experts about the rise of digital wallets, with Jenny Cheng, vice president and general manager of Google Wallet, stressing that digital wallets are about “flexibility” and “freedom,” letting users to leave home without physical wallets while still accessing key credentials and services.
“We’re talking about convenience and safety, but ultimately this is about driving value to the user,” she told PYMNTS CEO Karen Webster.
Looking ahead, the panelists imagined a future where digital wallets grow even more deeply integrated into daily life, providing enhanced personalization and convenience.
Jack Philbin, CEO of mobile marketing agency Vibes, envisioned a future where digital wallets could revolutionize travel.
“If you have an airplane boarding pass, and you go through security. … Why not then include an offer for someone and a discount or incentive to shop at a specific brand or retailer in that airport while they wait?” he said.
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