29-6-2023 (BANGKOK) Ant Group is expected to seek a partner to apply for a virtual bank license from the Bank of Thailand, according to Sittipong Kittiprapapong, the general manager for global merchant partnership at Thailand Ant Group. The company intends to collaborate with a local partner to support its business operations in Thailand.
Ant Group already has a partnership with Kakao Pay Corp, the mobile payment business of KakaoBank, to provide payment services in the Thai market. Recently, KakaoBank, the largest digital bank in South Korea, joined forces with SCB X Plc, the financial technology conglomerate and holding company of Siam Commercial Bank, to establish a consortium and apply for a virtual bank license from the Bank of Thailand. SCB X is set to hold the majority of shares in the consortium, with KakaoBank holding a minimum of 20%.
While additional partners are expected to join the consortium, Sittipong declined to comment on whether Ant Group would participate, as he is not authorized to provide such information.
Ant Group, the owner and operator of Alipay+, recently announced that four mobile wallets are now accepted in Thailand: AlipayHK (Hong Kong), Kakao Pay (South Korea), Touch ‘n Go eWallet (Malaysia), and Alipay (Chinese mainland).
Sittipong confirmed that the Bank of Thailand has approved AlipayHK, Kakao Pay, and Touch ‘n Go eWallet, all of which are partners of Alipay+, offering cross-border payment solutions in Thailand. The addition of these three mobile wallets will enhance the seamless digital travel experience for Asian tourists visiting Thailand as the tourism industry recovers, stated Sittipong.
Furthermore, 10 offshore mobile wallet providers partnering with Alipay+ plan to apply for a license from the Bank of Thailand. Sittipong revealed that these digital wallet providers come from Asia and Europe, including the Philippines and South Korea. The significant growth potential of Thailand’s tourism sector plays a crucial role in attracting foreign businesses.
Apart from facilitating payments, Alipay+ also focuses on individual payments at educational institutions and hospitals. Krungthai Card Plc (KTC) has partnered with Ant Group to integrate Alipay+, enabling merchants in Thailand to accept payments. Naowarat Keratikasemsook, the head of merchant acquiring business at KTC, highlighted the longstanding partnership between KTC and Ant Group since 2015. Initially offering the Alipay payment service for Chinese citizens, the collaboration expanded to Alipay+, enabling merchants to accept various digital payments via different mobile wallets conveniently and securely. Naowarat expects the payment volume of merchant partners to reach 100 billion baht by the end of this year, up from 40 billion in the first five months.
In addition to payments, Alipay+ provides marketing solutions to help merchants connect with consumers. For instance, KTC member merchants using Alipay+ can participate in the “Alipay+ Scan for Offer” promotion, while Alipay+ mobile wallet customers can access discounts that boost selling opportunities for merchants, explained Naowarat.
Introduced by Ant Group in 2020, Alipay+ aims to empower local businesses to process a wide range of mobile payment methods and reach 1 billion regional and global consumers through simplified integration and technical adaptation.
