Bankers chew over hiking PromptPay fee-waiver limit

The Thai Bankers' Association (TBA) is still considering whether its members will raise the fee-waiver ceiling to 700,000 baht per transaction for those who transfer money through the PromptPay system, says a banking source.

The maximum fund transfer per transaction via PromptPay is now capped at 100,000 baht. The TBA proposed raising the fee exemption ceiling to 200,000 baht per transaction, the source said.

Finance Minister Apisak Tantivorawong said recently that the TBA had agreed to waive the ceiling fee for PromptPay for money transfers of up to 700,000 baht in the next two months and that the cap would later be raised further to 2 million baht to encourage the use of the national e-payment scheme and facilitate price settlement in the capital market.

Under PromptPay's current fee structure for non-digital channels, all transactions up to 5,000 baht are free, while transactions of 5,000-30,000 baht are charged a maximum fee of two baht. Transfers of 30,000-100,000 baht have a maximum fee of five baht, while transfers exceeding 100,000 baht are charged a fee of 10 baht at most.

After banks waived transactional fees for interbank and cross-clearing zone money transfers, top-ups and bill payments via digital channels since late March, PromptPay's money transfers made through mobile and internet banking are also now free, the source said.

Prassanee Ouiyamaphan, executive vice-president of Bangkok Bank, said the bank still charges fees for PromptPay transactions through branches and ATM terminals.

The bank's customers can transfer money in amounts of up to 200,000 baht per transaction, but they need to go to a bank branch to make a request to double the maximum from 100,000 baht, Mrs Prassanee said, noting that the practice is to comply with security protections.

"The TBA's members are still considering an increase in PromptPay's fee-waiver threshold, and the decision should be bases on overall operating costs," she said. "The banking sector still shoulders significant expenses in cash management."

Kasikornbank president Patchara Samalapa said the PromptPay fee waiver amount would depend on the conclusion reached by authorities and the TBA.