Global: Thailand Launches Digital Wallet Registration

Thailand’s new digital wallet scheme, anticipated to draw participation from over 1.6 million shops, has commenced registration. Commerce Minister Phumtham Wechayachai announced that around 910,000 businesses under the Business Development Department, 146,000 blue-flag grocery stores, and 5,000 blue-flag food shops are eligible, as reported by Nation Thailand.

Citizen registration has already begun, with merchant registration opening on October 1, according to Thaiger. The initiative, championed by Prime Minister Srettha Thavisin, will distribute 10,000 baht in digital currency to 50 million Thai citizens aged 16 and older.

Registrations can be completed through the Tang Rat app, using a national ID card and facial recognition for identity verification. Alternatively, identity verification can be done at 7-Eleven service counters, Thai Post counters, Boonterm kiosks, multi-purpose government service kiosks, and via the ThaID app.

New app users will need to verify their identity by entering personal information, undergoing e-KYC verification, and creating a user account with a password.

Initially, the State Bank for Agriculture and Agricultural Cooperatives was set to finance the project. However, the government decided to fund the initiative through the 2024 and 2025 fiscal budgets, as reported by Malaysia Sun.

In May, the Thai Prime Minister’s cabinet approved an increase of 122 billion baht (around $3.3 billion) to the 3.48 trillion baht (roughly $96.8 million) fiscal budget. This additional funding, primarily sourced from loans, supports the digital wallet initiative, according to Nikkei Asia.

The funds are expected to be available for use in the last quarter. The government has established measures to prevent misuse of the funds, including restrictions on purchasing certain goods, such as fuel, lottery tickets, tobacco, and mobile phones.

The government anticipates that the digital wallet scheme will stimulate economic growth by 1.2 percent to 1.6 percent, due to “positive spillover effects extending into the following year,” according to a keynote address by PM Thavisin at the UBS Asian Investment Conference in May.