Payments innovators had to do away with a pretty large assumption early on in the process of updating worldwide payments systems – societies need not achieve peak-cash-using status before moving onto a cashless stage. Southeast Asia is full of examples of this payments sublimation, and a new survey shows that Thailand might just be leading the pack.
A recent survey conducted by ACI Worldwide found that Thai consumers show a remarkable tolerance not only for the risks inherent in mobile payments but also the possibilities afforded by them. For example, while 32 percent of respondents claimed to have been personally affected by payment fraud within the last year, 40 percent preferred to use mobile wallets or other alternative payment forms over more traditional methods like cards.
But for Leslie Choo, general manager and vice president of North Asia and ASEAN at ACI Worldwide, the 73 percent who could not say they had confidence in their alt payment information being protected represented the biggest challenge for Thai innovators.
“The Thai respondents’ answers provide a directional market view into the future of commerce and payments,” Choo said in a statement. “The survey highlights that there is a lack of trust in merchants and eCommerce, which makes it imperative that merchants provide secure payments options for their clients. 40 percent surveyed are using alternative payments methods today, so it is essential that merchants offer more than card based payments.”
Whatever they do, it seems as if cash is on its way out in the Southeast Asian country. According to the survey, 49 percent of all P2P payments in Thailand are conducted through electronic methods, and the use of cash is expected to continue its slow decline.