MAI-listed Forth Smart Service Plc (FSMART), the country's largest top-up machine provider under the Boonterm brand, has moved to ease concerns over banks' no-fee digital transactions, saying almost all Boonterm customers are unbanked.
The company's customer base is largely those with no deposits or access to banking, especially online banking, said managing director Somchai Soongswang.
Fund transfer transactions through Boonterm machines peaked at 30,359 on April 1, he said, suggesting that the company did not feel the pinch after several banks eliminated online transaction fees in late March.
Fund transfer transactions rose from a daily average of 24,282 in January to 26,412 in February and 27,300 in March, driven by rising demand from customers and a greater number of top-up machines, Mr Somchai said.
Boonterm top-up machines at the end of 2017 numbered 124,653 nationwide, accounting for 55% of the total. Boonterm aims to add 20,000 machines this year.
The company's services include top-ups for mobile, internet, e-wallet and online games; bill payment; money transfers; horoscopes; weighing scales; and vending machines.
Mobile top-ups amounted to 130 billion baht last year, with Boonterm claiming a 22% market share. The brand's customers accounted for one-third of the 25 million mobile phones using top-up service.
The company also acts as a banking agent for Krungthai Bank and Kasikornbank. Three additional banks -- Bangkok Bank, Siam Commercial Bank and Bank of Ayudhya -- are in the process of appointing the company as an agent.
SCB got the ball rolling when it scrapped fees for interbank and cross-clearing zone fund transfers, bill payment and top-up transactions over online channels, effective from March 26.
The bank's move compelled other banks to follow suit.
"Our customers largely differ from the banks' client base," Mr Somchai said. "They have no deposits in bank accounts. Their top-up value averages 40 baht per transaction, and money transfer and bill payment is about 700 baht each."
The company plans to aggressively expand user numbers for its e-wallet service, Be Wallet, from 20,000 at the end of last year to 200,000 this year. Middle-income earners are the main target customers of the e-wallet service.
"We don't think Boonterm will be disrupted by digital banking, given the different market segmentation," Mr Somchai said. "We aren't confident that our B-Wallet will disrupt banks in the longer-term, but we are in partnership with banks, particularly in the banking agent area."
The company plans to expand mobile top-up service to Myanmar via migrants workers in Thailand. Workers will be allowed to top up prepaid mobile phones for relatives in Myanmar starting this year.
