smart card sees sunny future

The four segments have one thing in common, said chief commercial officer and chief operations officer Chatchai Chatchaiganan. Their customers all pay via the Internet, he explained.

As part of its effort to partner with companies from these four industries, Thai Smart Card this month signed 13 partnership deals. They include contracts with online-gaming company Asiasoft Corporation and Zest, cinema operator SF Cinema City, food-packaging company S&P Syndicate and Internet provider CS Loxinfo.

Partners' customers can make payments online using their Smart Purse cards. Currently, Smart Purse cardholders can buy goods and services from 13,500 partners companies. The number is forecast to increase to 14,000 vendors by the end of this year.

The company hopes that its concerted marketing efforts will lead to a gradual increase in the number of online games and digital-content download purchases, Chatchai added. Thai Smart Card's sales team is also approaching potential partner companies in the education and home-delivery segments.

Thai Smart Card is also collaborating with GMM Grammy to allow the music company's customers to pay for music downloads, home karaoke and concert tickets using their Smart Purse cards.

"It is easier to pay for products and services via digital cash card because it is faster than paying by cash," Chatchai said. "Moreover, it assures those businesses that they will receive the money because customers have to pay immediately."

Partners also benefit by saving on operating costs if they adopt online payment, Chatchai argued.

Chatchai said he believed the company's push for more business in the entertainment sector would give it a boost in customers in the sought-after under-22 age range. This target group, he explained, plays games online and enjoys entertainment more than older adults.

At present, 12 per cent of Smart Purse cardholders are younger than 22, and 46 per cent are between the ages of 23 and 35. The remaining 42 per cent is older than 35. Due to its new strategy, the company expects the youngest customer group to double next year, Chatchai said.

By the end of this year, Smart Card will have two million cardholders, Chatchai said, an increase of 700,000 from 1.3 million last year.

Initially, the company sought to add one million customers this year. Because of the poor economic climate, however, it is likely to miss its target, Chatchai explained.

The value of Smart Purse transactions is expected to increase roughly 11 per cent this year to Bt4.8 billion, from Bt4.3 billion last year, he added. Spending per bill has also slightly increased from Bt1,100 in the previous year to between Bt1,200 and Bt1,500 this year.

"The economic slowdown next year might affect the overall business in Thailand, but our cardholder number has increased every year," Chatchai said. "I believe that our business will still be growing next year."