PromptPay drives up KBank e-transfers
WITH THE PromptPay money-transfer system now in active use, Kasikornbank is witnessing a 130-per-cent increase in electronic transfers in March compared with the first two months of the year.
KBank projects that the number of its customer registered for PromptPay will reach 5 million by the end of this year, up from 3 million now, with e-transactions increasing by 45-50 per cent. That would slash its cash-handling costs, which now average Bt1 billion per year, KBank senior executive vice president Patchara Samalapa told a news conference yesterday.
Of the more than 3 million customers registered for KBank PromptPay, 52 per cent used their national identity-card numbers to register, and the rest their mobile-phone numbers. The most used channel for service registration is K-Mobile Banking Plus.
Patchara said person-to-person payment via KBank PromptPay was introduced to the public in late January. Customers can transfer funds via K-ATM, K-Cyber and K-Mobile Banking Plus to any recipient registered for PromptPay at any bank.
As more users became familiar with the service, money transfers, both interbank and within KBank, via KBank PromptPay have risen to 23,500 per day in March, from 10,000 a day in the January-February period. This represents an increase of more than 130 per cent. Of the total, around 80 per cent were interbank transfers.
KBank believes that PromptPay transactions and registrations will rise dramatically as people realise the service is convenient and secure. The bank expects its customers to use PromptPay as their main payment channel eventually.
As most customers have linked their main account to the service, KBank will take this opportunity to expand its customer base, wherein 30 per cent of its mass segment and 20 per cent of its middle-income clients use KBank as their main bank.
Currently, only 5.5 million mobile-phone numbers out of the nearly 90 million in use nationwide are linked to PromptPay.
To encourage more of its customers to register, KBank will launch a campaign called “PromptPay Cool! Secure! Anyone Can Pay!” next quarter.
The move is part of efforts to transform Thailand into a “cashless society”, cutting costs for the nation while also slashing KBank’s own cash-handling costs – comprising cash reserves, cash transport and refills, as well as cash insurance – that currently top Bt1 billion a year.
KBank will hold a marketing event to promote the service among small vendors at wet markets, fresh markets, and small stores. When these sellers use the PromptPay service, their customers will be able to pay for goods and services simply by using their mobile phones.
Patchara said PromptPay provided a convenient, easy and fast payment service. Customers feel confident to make funds transfers, as the recipient’s name is displayed every time before they confirm the transfer transaction.
The bank has launched another promotional campaign wherein individuals who have registered with KBank PromptPay pay no fees when transferring funds via KBank to any PromptPay account, with no transfer limit. The promotion runs through June 30.