BoT tells e-money services to register

BoT tells e-money services to register

The Bank of Thailand requires all e-money, credit, debit and ATM card, and fund transfer service providers to either register with or seek approval from the central bank by Aug. (Bangkok Post photo)
The Bank of Thailand requires all e-money, credit, debit and ATM card, and fund transfer service providers to either register with or seek approval from the central bank by Aug. (Bangkok Post photo)

The Bank of Thailand has required all e-money, credit, debit and ATM card, and fund transfer service providers to either register with or seek approval from the central bank by Aug 14 to prevent their business from being shut down.

During the registration period, these operators can operate as normal, said Siritida Panomwon Na Ayudhya, assistant governor for the payment system policy and financial group.

The requirement is part of the new Payment System Act (2017), which took effect on Monday.

There are around 30 e-money service providers under central bank supervision and the number rises to more than 100 if other payment service providers are taken into account.

She said more than 10 new payment service providers have expressed interest in applying for payment service licences from the Bank of Thailand.

Before the new law was enforced, the central bank held public hearings to give the operators time to comply.

In a related development, Ms Siritida said the central bank has halved the minimum paid-up capital requirement for e-money service providers to 100 million baht from 200 million to widen opportunities for small operators to enter the business, allowing consumers better access to payment services.

The new law aims to unify existing payment laws and regulations, and synchronise certain requirements with international standards, allowing some flexibility to support or regulate the emergence of new payment systems and services in the future. It would support payment services, especially through online channels, and gradually transform the country into a cashless society. She said PromptPay-based fund transfer services have continued to increase both in transactions and volume.

As of April 6, PromptPay had 40 million registrants with 173 million transactions and 700 billion baht in money transfer value, rising from 36 million registrants with a combined money transfer value of 200 billion as of October last year.

Banks' free transactions for internet and mobile banking will take a toll on their fee-based income, but their operating costs should fall in the long run in the digital era.

"Fee-free service benefits consumers and supports the country's transition to a cashless society," said Ms Siritida.

Regarding the personal data leakage of iTruemart's customers, she said it would not have any impact on the customer data of True Money, which is under central bank regulation, because the two business units of True Corporation Plc are clearly separated.

The central bank is not worried the leaked data will be used to commit fraud, given that the banking industry has strong security systems, said Ms Siritida.

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