Kasikornbank (KBank) is now able to process transactions for Chinese tourists via QR (quick response) code through its collaboration with Chinese-based payment app providers Alipay and WeChat.
The bank is the first in the country to collaborate with Alipay and Wechat to offer QR code payment services for merchants. The service, named K Plus Shop mobile banking app, is expected to be unveiled next month after exiting the Bank of Thailand's regulatory sandbox, said president Kattiya Indaravijaya.
The payment channel lets local business operators capitalise on the strong growth of Chinese tourists in the country. Some 8.8 million Chinese travellers came to Thailand in 2016, a 10% jump year-on-year. Chinese visitors accounted for over 6.6 million arrivals to Thailand during the first eight months of this year.
Spending by this segment increased from 380 billion baht in 2015 to 400 billion last year. International arrivals are expected to keep increasing in 2017.
Shopping is the No. 1 payment category for foreign tourists to Thailand, accounting for 20% of total spending, followed by entertainment at 10%.
As the first mover, Ms Kattiya said the bank is following an aggressive strategy to capture market share. In order to sign up as many users as possible for K Plus Shop, the bank plans to reduce the normal 1.6% transaction fee to 1.3% for merchants who use QR code mobile payments through the end of the year. The fee will increase to normal levels in 2018.
While in the regulatory sandbox, KBank tested its consumer and merchant QR code payments in Chatuchak weekend market, Platinum shopping mall and Siam. More than 2,500 merchants are currently testing K Plus Shop.
The bank plans to expand the innovative payment channel significantly after exiting the regulatory sandbox in order to transform the country into a cashless society, she said. Small and medium-sized enterprises (SMEs) are the bank's key market segment.
"The bank's strength in the SME segment will support the rapid expansion in the number and volume of digital transactions," said Ms Kattiya.
KBank, the country's fourth-largest lender by total assets, is the top bank in the SME sector, with a total SME loan portfolio of 600 billion baht. The firm is also the industry leader in digital banking, with more than 7 million users.
