KResearch views that the ongoing COVID-19 pandemic is an important catalyst in transforming the way Thai consumers conduct funds transfer and pay for goods and services. Such trends have given rise to the “New Normal" which is geared towards making money transfers and purchases that do not require physical contact, or contactless payment. Based on surveys conducted by KResearch, Thai consumers have increasingly gravitated to using mobile banking and e-wallet platform, even after the spread of COVID-19 in Thailand has subsided. Concurrently, the services have also seen an influx of new users. Consumers aged between 35 and 44 years old feature prominently as a group which has contributed to the increased use of mobile banking and e-wallet services, compared to the previous cluster of users aged between 25 and 34 years old. This widening age range reflects consumers' behavioral change, which is a crucial factor that continues to drive the use of mobile banking and e-wallet upward, which in turn has led to fierce market competition.
KResearch anticipates that funds transfer and payment for goods and services via mobile banking and e-money solutions will likely experience continuous growth in 2020. However, while these transactions have received a boost from contactless payment, growth is expected to stall due to a consistent drop in a transaction value and a decline in consumers' purchasing power owing to the economic recession. The volume of money transfer and purchases via mobile banking service is projected to be in the range of 7,758.0 to 7,927.5 million transactions, or growth of 57.5 - 61.0 percent, YoY, while their value will be in the range of THB 29,910.4 to 29,707.2 billion, or growth of 18.4 - 21.7 percent, YoY. Meanwhile, the volume of funds transfer and payment for goods and services via e-money platform will likely be in the range of 1,990.1 to 2,038.0 million transactions, or growth of 1.2 - 3.7 percent, YoY whereas their value is expected to be in the range of THB 286.3 to 291.1 billion, or growth of 1.5 - 3.2 percent, YoY.
Going forward, online platform operators via mobile banking and e-wallet services still have the potential to expand, but must contend with new players amid a highly competitive market, particularly among e-wallet service providers. Therefore, KResearch is of the view that competition in the market will become more intense with a focus on pricing strategies and a wide variety of promotions. These tactics will likely play into overarching marketing schemes to attract both consumers and business operators, especially stores and restaurants.