Thailand to act as JCB expansion hub

Thailand to act as JCB expansion hub

The huge growth potential of frontier markets in the Greater Mekong Subregion (GMS) is attracting foreign investors, particularly Japanese, to use Thailand as a base for making inroads there, and the Tokyo-based JCB International (Thailand) is jumping on the bandwagon.

Michishima: Nascent GMS market tasty

The Japanese card payment services provider sees credit card business opportunities in the nascent economies and the promising prospect of Asean economies following the formation of a single market under the Asean Economy Community.

With its advanced credit-card market, Thailand is an ideal place to support its penetration of other regional markets, said managing director Naoya Michishima.

The GMS will be JCB's focus due to its combined population of 326 million and the early stage of credit card operations in Cambodia, Vietnam and Laos.

Myanmar's government has not allowed credit cards to be issued.

JCB entered Thailand in 2000, but its market share here remains far smaller than rivals Visa International (Thailand) and MasterCard Thailand.

The Japanese card service provider joined with two financial institutions — Krungthai Card Plc and Aeon Thana Sinsap (Thailand) — to launch JCB credit cards with more than 200,000 circulating in the Thai market, almost half KTC-JCB cards.

Some 19 million credit cards circulate in the Thai market.

Thailand is an increasingly important destination for Japanese investors who have relocated their production bases to avoid high labour costs. As Japanese manufacturers flock to Southeast Asia, financial institutions followed in their footsteps to provide services.

The Bank of Tokyo-Mitsubishi UFJ acquired Bank of Ayudhya, Thailand's fifth-largest lender by assets, last year.      

Mr Michishima said JCB would step up its plan to expand its credit card business in Thailand in the long run by increasing the number of cardholders, merchants and financial institution partners.

The Japanese firm focuses on middle- and upper-income earners.

To ensure its target is achievable, JCB will launch marketing campaigns and build brand awareness.

"Without political turmoil, Thailand’s economic growth and domestic consumption have high growth potential underpinned by strong fundamentals. Thailand is the region’s key market for JCB," he said.

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