Residents, businesses, and the government of Bangkok could receive economic benefits totalling as much as THB126 billion combined by switching from physical money to digital payments, according to a new study carried out by Roubini ThoughtLab and supported by Visa.
The study looked at the economic impact of increasing the use of digital payments in major cities around the world. Bangkok was determined to be a “digitally transitioning” and was 1 of 6 global cities selected for the study which looks to quantify the potential net benefits experienced by cities which move to an achievable level of cashlessness.
“As more people move from rural to urban areas, cities become the nexus for the adoption of electronic payments. This study is unique in that for the first time it looks at the net benefits associated with adopting digital payments at a city-level. The research shows that a shift to electronic payments will benefit people, businesses and government not just in big cities like Bangkok, but other urban centres such as Phuket and Khon Khaen as well,” says Suripong Tantiyanon, Visa Thailand Country Manager, to Retail News Asia.
Widespread usage of electronic payments in Bangkok could have a huge impact on the Thai capital’s economy. Consumers would benefit by THB3 billion, businesses would see THB73 billion in economic benefits and the government could benefit by THB50 billion. These benefits factor in things like time saved while conducting and processing transactions, increased sales revenues, and increased tax revenues.
“There are many existing and emerging technologies in payment that will drive wider adoption of electronic payments. In cities like Bangkok, we will see new payments form factors such as standardized QR Code go beyond being just a money transfer tool and mainstream method such as debit chip card becoming widely used and accepted, giving consumers and businesses the choices on how to pay and get paid,” says Suripong.
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