Tourist spending on both sides of the Thai-Laos border looks set to increase after the Bank of Thailand (BoT) and the Bank of Lao (BoL) on Sunday launched a new QR payment system to support electronic transactions.
Khemchat Somjaiwong, president of the Khon Kaen Chamber of Commerce, on Sunday hailed news that the BoT and BoL had reached the agreement on the sidelines of the 11th Asean Finance Ministers' and Central Bank Governors' Meeting in Luang Prabang on April 3.
The cooperation is hoped to stimulate the overall economic situation in the second quarter, especially the coming Songkran and the Lao New Year festivals in the middle of this month.
"In the first phase, Lao people who cross to Thailand can use their Lao commercial bank apps on their mobile phones to scan the Thai PromptPay QR code to pay for goods or services in Thailand. The service has been available since April 3," he said.
In the second phase, starting around the end of June, Thai nationals can use their mobile banking apps to pay for goods and services in Laos. The service will boost spending, especially in Nong Khai province in Thailand and Vientiane in Laos.
"Other provinces like Udon Thani and Khon Kaen will also benefit, as many Laotian people cross the Thai-Laos friendship bridges to buy products, see doctors, attend seminars or enjoy a relaxing holiday. They won't have to worry about payment, as paying by QR code will be convenient," he said.
According to BoT, the cooperation will bolster trade, investment, tourism and the use of local currencies under the Asean Payment Connectivity initiative.
Sethaput Suthiwartnarueput, the central bank governor, said earlier the BoT recognised the importance of cross-border real-time payment linkage and has collaborated with five Asean countries including Cambodia, Indonesia, Malaysia, Singapore and Vietnam.
"Laos is our sixth linkage under the Asean Payment Connectivity initiative. We believe cross-border QR payment services will be a safer, more efficient, and a cost-attractive alternative for retail payments in Asean, thereby promoting economic growth in the region and supporting the transition towards a digital society."
Bounleua Sinxayvoravong, governor of the BoL, said the collaboration reflected a shared vision for regional integration, economic development and prosperity. The initiative involves various stakeholders, including the National ITMX Co and Lao National Payment Network Co (LAPNet), operators of instant payment systems. Kasikorn Bank and Banque Pour Le Commerce Exterieur Lao (BCEL) are responsible for cross-border settlements. Six banks from Laos are already on board while Krungthai Bank and Bank of Ayudhya in Thailand will provide the service for QR payment in Laos in the second phase.
