Six banks join hands to install over 400,000 card acceptance machines supporting National E-Payment Policy.
Bangkok: In an unprecedented collective effort to enhance the efficiency of Thailand's payment system, six local commercial banks have agreed to upgrade the nation's payment system infrastructure by jointly installing over 400,000 card acceptance machines country-wide. The improved system will reduce overlapping investment and boost spending via cards under the government's National E-Payment Master Plan. The cooperating banks are Krung Thai Bank PCL, Bank of Ayudhaya PCL, TMB Bank PCL, Siam Commercial Bank PCL, Thanachart Bank PCL, and the Government Savings Bank,
Under the strategic partnership, the banks will cooperate in promoting the card acceptance expansion project in support of the government's master plan. They will jointly install card acceptance machines for large and small-size merchants and private companies as well as state-owned agencies. The Electronic Data Capture (EDC) and Mobile Point of Sale (mPOS) machines will help reduce the use of cash and lower costs for merchants while enhancing payment system efficiency and accommodating future financial innovations.
The machines will initially be installed in spots chosen by the Ministry of Finance to ensure that they are easily accessible and available nationwide. The installed machines can handle both debit and credit cards with shared special functions and will accept cards from any of the six banks.
Once successfully implemented, the project will benefit merchants through enhanced payment efficiency, reduced costs for card acceptance machine installation and maintenance, and reduced merchant discount rates (MDR).
The member banks plan lower fees than those currently charged for their debit cards, while consumers will enjoy the convenience and safety of spending through 400,000 machines and access to future technologies such as Chip & Pin cards. The banks are also preparing to jointly conduct marketing campaigns, such as co-promotions and special privilege offerings to promote the attractive benefits to card users and merchants.
All six banks are fully ready to forge ahead with the implementation of the project and are now waiting for the Ministry of Finance to make a final decision on project assignment. This cooperative effort represents a significant step toward upgrading Thailand's payment system to meet international standards. The banks have invited other interested banks to participate in the development of the country's card acceptance machine infrastructure to enhance the potential of member banks.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Jun 27, 2016|
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