Bangkok--28 Mar--KASIKORNBANK
Pressing ahead to increase the number of PromptPay users and transactions, KBank has launched a large-scale campaign, "PromptPay Cool! Secure! Anyone Can Pay!", targeting small vendors at wet markets, fresh markets and shops, both in Bangkok and other provinces. KBank projects that registered numbers will reach 5 million, with e-transactions increasing 45-50 percent, thus slashing its cash operation costs which now average 1 billion Baht per year.
Mr. Patchara Samalapa, KBank Senior Executive Vice President, said that person-to-person payment via KBank PromptPay was introduced to the public in late January. Customers can make funds transfer via K-ATM, K-Cyber and K-Mobile Banking PLUS to any recipient who has registered for PromptPay at any bank. As more users become familiar with the service, money transfer transactions, both interbank and within KBank, via KBank PromptPay have risen to 23,500 per day in March, from 10,000 in January-February. This represents an increase of more than 130 percent. Of the total, around 80 percent was interbank funds transfer.
KBank believes that PromptPay transactions and registered numbers will rise dramatically given that the service is convenient and secure, while users can save on relevant fees. Customers are expected to use PromptPay as their main payment channel. As most customers have linked their main account to the service, KBank will take this opportunity to expand its customer base, wherein 30 percent of KBank's Mass segment and 20 percent of its Middle Income clients use KBank as their main bank. Currently, only 5.5 million mobile phone numbers out of the nearly 90 million in use nationwide are linked to PromptPay. Of the total, 90 percent are smartphones.
KBank is launching its "PromptPay Cool! Secure! Anyone Can Pay!" campaign during the second quarter of this year, with the aim of raising the registered numbers with KBank PromptPay to 5 million by year-end, from 3 million at present. This will help boost financial transactions via electronic channels by 45-50 percent. The move is part of efforts to transform Thailand into a "cashless society", cutting costs for the nation while also slashing KBank cash operation costs – comprising cash reserves, cash transport and refills, as well as cash insurance – topping 1,000 million Baht a year.
KBank will hold a marketing event to promote the service among small vendors at wet markets, fresh markets such as Or Tor Kor Market, and small stores. When these sellers use PromptPay service, their customers may make payments for goods and services simply by using their mobile phones.
Mr. Patchara said that PromptPay provides a convenient, easy and fast payment service. Customers feel secure to make funds transfers, as the recipient's name is displayed every time before they confirm the transfer transaction. KBank has launched another promotion campaign wherein individuals having registered KBank PromptPay pay no fees when making funds transfer via KBank to any PromptPay account, with no transfer limit. The promotion runs through June 30, 2017.
Presently, more than 3 million numbers are registered via KBank PromptPay. Of this, 52 percent are national ID card numbers, and 48 percent are mobile phone numbers. The most-used channel for service registration is K-Mobile Banking PLUS.
For corporate customers, registration for PromptPay has been open since early March. Customers can link their bank account number to their tax ID number at any KBank branch or through their RMs. KBank has stepped up efforts to communicate to this customer group to ensure their understanding of the service's benefits, including cost reduction, minimized risk of cash and cheque operation, convenient and flexible cash management, as well as the reduced burden of receipt delivery and tax invoice through the e-Tax system.