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TBank adopts Pay'n Go for credit card transactions

Thanachart Bank aims to boost its merchant-business ranking from its current seventh place to the top four within three years after adopting mobile-point-of-sale (mPOS) technology for credit-card use.

TBank is the fifth financial institution in Thailand to launch the mPOS service Pay'n Go, a credit-card-swiping device.

The lender will strongly promote Pay'n Go to small businesses including self-employed individuals, said Prinya Jinantuya, TBank first vice president.

There are seven banks that provide electronic data capture (EDC) to merchants. TBank is ranked seventh because it only entered the sector five years ago. Prinya said that given mPOS was a new technology, the bank had to find key well-known partners in creating awareness of it for both enterprises and individuals.

"We have AIS [Advanced Info Service] and True as partners in promoting Pay'n Go because both have corporate clients using their networks," he said. "We, AIS and True are jointly offering free [mobile phone] airtime to corporate clients interested in buying Pay'n Go as the channel to accept credit cards."

He said the growing trend of people making financial transactions via smart gadgets encouraged TBank to adopt Pay'n Go to tap this behaviour better. But it differed from other lenders with mPOS because it was also going after self-employed individuals.

Further, Pay'n Go would strengthen the bank's current and saving accounts because merchants would have to open one so the bank could transfer money to their account after a Pay'n Go transaction.

Prinya said TBank would add an instalment-payment service to Pay'n Go at the end of this year to strengthen its merchant business.

TBank has about 5,000 merchants among its clients and about 400,000 monthly transactions, with merchant spending each quarter of around Bt15 billion. The bank anticipates that after launching Pay'n Go the number of merchant clients this year will increase to about 8,000 and transactions via merchant business will expand 20 per cent via the existing EDC and Pay'n Go.

Prinya said that along with an EDC monthly leasing fee, businesses had to pay an extra charge to their EDC providers if the transaction volume is small, making Pay'n Go ideal for smaller enterprises.

Enterprises that want to use Pay'n Go pay a one-time fee of Bt2,500.


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