COVID-19 outbreak Is a major driving force that makes transactions through Mobile Banking and e-Wallet Has accelerated the growth higher. Reflected from the survey results of the Kasikorn Research Center. It was found that overall Thai consumers transfer money and pay for goods and services via mobile banking and e-Wallet 19 times per week. This was more than that during the first outbreak, with a rate of 17 applications per week. While 53.9 percent of consumers are using more.
Kasikorn Research Center Expected in 2021 It is expected that in 2021, the volume of money transfer and payment transactions through Mobile Banking Will grow approximately 80.2 percent – 83.5 percent YoY Which accelerated from the year 2020 at 79.7 percent, similar to that of e-Money It is expected to grow around 15.8% – 18.0%, higher than in 2020 of 8.7%.
The value of the transaction through Mobile Banking Expected to grow approximately 36.5 – 38.0 percent. YoY Close to the year 2020, while the value of e-Money Expected to grow by 15.5-17.7 percent, reflecting accelerated growth from 9.9 percent in 2020. The main driving force will be from the continued adoption of G-Wallet (bagang) from government assistance programs in 2021, and a new and reliable group of entrepreneurs. And has the potential to come in to market more as well
From the epidemic of COVID-19 Second and third waves since the beginning of last year. Resulting in many The business was severely affected. But on the other side Mobile Banking and e-Wallet transactions have benefited to accelerate growth. This is because it is partly in line with consumer behavior that avoid touching banknotes and coins. Including becoming more familiar with such online payments
- From the survey results of the Kasikorn Research Center[1] Found that the traffic through Mobile Banking and e-Wallet Continues to Grow Amid a New Wave of Covid-19 Overall, Thai consumers hold money transfers and pay for goods and services via mobile banking and e-Wallet 19 times per week. This is more than the survey of applications after the first wave of outbreaks in August 2020 with 17 applications per week. While 53.9 percent of consumers are using more. Which comes from a group of consumers who are affected by limited income, such as employees of large companies Government officials and state enterprise employees That also saw increased use Especially in the timing of work from home and travel cuts to reduce the risk of infection or the spread of COVID, while this increase in consumer purchases has increased the number of purchases per time, according to the survey. Before 350 baht, still focusing on spending on food and beverage groups Consumer products used in daily life And fashion products As in the previous survey
- However, the epidemic of COVID-19 Also affect some consumers This causes a decrease in income due to a reduction in salaries or lower sales of products. Or lack of income due to unemployment reflectedSurvey results from the Kasikorn Research Center It was found that approximately 8.3% of consumers spent less via Mobile Banking and e-Wallet, with a decrease of 600 baht per purchase.
- Mobile Banking Of various financial institutions Is still popular among Thai consumers This is partly due to the fact that financial institutions are increasingly collaborating with large online platform providers, while the functionality for payment of goods and services via Mobile Banking is easy to understand. In addition, Thai consumers still prefer to buy products online through social networking platforms (Social Commerce) such as Facebook, Instagram or LINE, where merchants or sellers often accept payments. Goods through the bank account As a result, the use of Mobile Banking continues to expand.
In addition to the above survey Data of Mobile Banking and e-Money transactions in the first two months of 2021 saw a growth of approximately 90.2 percent and 28.9 percent, accelerating from the same period in 2020. Expansion stood at 65.6 percent and 2.3 percent, respectively.Kasikorn Research Center Seeing that the accelerated expansion This is likely due to the change in consumer behavior that uses less cash. Due to concerns over the virus that may come from banknotes And consumers are becoming more and more familiar with Mobile Banking and e-Wallets, especially from the use of G-Wallet applications (bags) from government subsidies throughout the year 2020. Until now
In addition, commercial banks and e-Wallet providers have partnered with large online platforms with a large user base, such as e-Market Place or Food Delivery, making it easy and convenient to pay via Mobile Banking and e-Wallet. up And the entrepreneurs themselves have been issuing promotions to reduce the price of products and services continuously.
Especially for new users This leads to an increase in the number of new users and the transaction volume. More and more large groups of entrepreneurs are entering the e-wallet market, such as the large online platform providers. A large retail operator with original creditability. It gives consumers the courage to try the e-Wallet of those new operators.
In this direction Combined with the benefit of increased online spending activity during the third COVID phase, 2021 will remain another year when transactions have passed. Mobile Banking and e-Wallet Has been expanding continuously. By the Kasikorn Research Center, it is estimated that
Transactions, Transfers and Paymentspast Mobile Banking In 2021, it will grow approximately 8 percent.0.2 – 83.5 YoY Which accelerated from the year 2020 at 79.7 percent Part of this will be an indirect benefit from government assistance programs, for example, the third half of the third phase of the project, which will be implemented in 2021, will result in the use of Mobile Banking to transfer funds to G-Wallet. Increase
The same is true about transactions through e-Money Which is expected to grow about a percentage point 15.8 -18.0 Which is higher than in 2020 at 8.7 (Although the 2021 growth rate is likely to slow down from the figures in the first two months of 2021, including in the second quarter of the year, if the government is able to control the spread of the virus and accelerate the rate) Get more coverage Until resulting in more employees returning to work at work)
sideTransaction valuepast Mobile Banking Expected to grow approximately 36.5 – 38.0 percent. YoY Close to the year 2020 Reflect the value of the transaction per transaction that decreased. As it can support a wider range of applications Especially from small and medium merchants that are increasingly accepting mobile banking via QR code scanning. While the value of conduct through e-Money Expected to grow by 15.5-17.7 percent, reflecting accelerated growth from 9.9 percent in 2020. Both the volume and value of e-Money transactions accelerated. There should be a major driving force from the use of G-Wallet (Pao Tang) from government assistance programs that are likely to be continued in 2021, such as the We Win Project, M.33 Project, We Love Each Other Project, Half Phase Three. The more projects used, the better, and it was also driven by new, reliable and potential entrepreneurs who came into the market. Especially issuing promotions to reduce prices of products and services As a result, the use of e-Wallet among Thai consumers as a whole accelerates.
Expect online money transfer and payment transactions via Mobile Banking and e-Money to accelerate growth in 2021.
however The Kasikorn Research Center also views that the epidemic of COVID-19 Will also affect the overall shopping atmosphere It may just be worth noting that The increased volume and value of Mobile Banking and e-Wallet transactions This should be mainly due to the change in consumer behavior with lower cash spending. Rather than rising spending against the uncertain economic climate amid the COVID-19 outbreak.
In addition, the service provider e-Wallet Or even Mobile Banking Many challenges may be faced in the future. From the intense competition in the market This is because consumers tend to change their behavior very quickly. And should be sensitive to marketing strategies Which is ready to change the original used application If motivated by more comfortable use There are promotions to reduce the price of products and services. Or have other benefits
Kasikorn Research Center It was found that the top three factors contributing to e-wallet usage were convenience in transferring money or paying for services (34.4%). There were incentivized promotions such as discounts on products and services ( 16.9% of merchants (16.2%) have a wide variety of merchants (16.2%) to accept payments, while 32.3% of consumers have more than five mobile banking and e-wallets.
Therefore, service providers may face challenges in maintaining their customer base. And efforts to persuade customers to continue to use, while in the future, Thai authorities can take charge of activities on online platforms, such as maintaining a store on the platform to reduce service fee costs. It may also influence the direction or pattern of future payments.
[1] Survey between 26 – 30 April 2021
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