BAAC joins hands with KTC in launching QR Code payment channel via Alipay
For Nong Homchan Shop.
BAAC joins hands with KTC to create market opportunities for agricultural entrepreneurs by offering a payment channel for payments of products and services using QR Codes for BAAC’s Nong Homchan Shop via Alipay’s eWallet, covering over 500 BAAC Thai community shops, accommodation, homestays, restaurants, souvenir stores, coffee shops, retail stores, tourism communities, rental cars, buses, and tour bus merchants nationwide. Launch date this upcoming November 1st.
Today (October 2, 2020) the signing ceremony of the business cooperation agreement, “QR Code and e-Commerce Merchant Service Project,” between Mr. Apirom Sukprasert, President, The Bank for Agriculture and Agricultural Cooperatives (BAAC) and Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, took place at the 2nd-floor hall of The Bank for Agriculture and Agricultural Cooperatives (BAAC) Bangkok headquarter. The project was organised to expand payment services for products and services to include QR Codes via Alipay’s eWallet for agricultural entrepreneurs that are members of BAAC’s Nong Homchan Shop.
Mr. Apirom Sukprasert, President, BAAC, states, “BAAC is moving forward with its policy to provide full-scale financial services. The institution is aware of the importance of expanding market opportunities to cover cooperative entrepreneurs and community enterprises in the agricultural sector to create customer satisfaction for electronic service usage on a wider scale, which also conforms to the government’s policy moving towards a cashless society. For these reasons, BAAC collaborated with KTC, a 5-year Alipay payment service provider and an institution receiving one of the highest payment balances in Thailand, to expand payment services for products and services to include QR Codes via Alipay’s eWallet for agricultural entrepreneurs that are members of BAAC’s Nong Homchan Shop, such as Thai community shops, accommodation, homestays, restaurants, souvenir stores, coffee shops, retail stores, tourism communities, rental cars, buses, tour buses, and merchants of participants of BAAC's New Gen Hug Baan Kerd project. The Bank of Thailand has given the BAAC permission to offer Alipay’s QR Code service and is on set to launch Alipay’s QR Code payment service on November 1, 2020, leading 500 merchants nationwide.”
“This joint collaboration will strengthen the local economy, elevate the quality of life for people in the community, and create an understanding of shop adaptations to prepare to sell products and services to tourists especially Chinese tourists who will travel to Thailand if the government’s policy to reopen its borders for foreign tourists becomes active, through Alipay’s QR Code payment service, which is both convenient and safe. Most importantly, users of this service do not need to carry cash. There are also promotions and sales promotion budgets for merchant members and special privileges for customers who are Alipay app users who make payments via the Alipay app. Currently, BAAC has a total of 185,364 Nong Homchan Shop merchants, comprising of 184,452 agriculturists and 912 legal entities. During the start of 2021, under the collaborative efforts between BAAC and KTC, there are also plans to offer QR Code payment services for Visa and Mastercard credit cards. BAAC is currently in the process of requesting permission from the Bank of Thailand to offer QR Code payment services for Visa and Mastercard credit cards in the future.”
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Mr. Rathian Srimongkol, President & Chief Executive Officer, “KTC” states, “There is a tendency for the payment service for credit cards in the form of QR Codes to keep growing following the cashless society trend that prioritises convenience, safety, and great customer experience for users. This is partially owing to the fact that merchants have adopted a payment system that is of international standards and is internationally recognised. KTC is one of the service providers which offers consumers both credit cards and payment services in different formats for merchant members. In 2016, KTC began to offer Alipay payments, a top online payment service provider in China under Ant Group, to support Chinese citizens living in Thailand and Chinese tourists entering Thailand. By the end of 2019, KTC has accumulated an approximate of 15.6 billion in Alipay payments for products and services.”
“For the joint collaboration between KTC and BAAC in this occasion, KTC will adopt the QR Code payment technology to present a payment channel for products and services via PromptPay and Alipay’s eWallet combined with BAAC’s “Nong Homchan Shop” app to stimulate the local economy operations, mobilise the community to become stronger, as well as provide convenience and reduce costs for payment device installations for almost over 200,000 BAAC merchants nationwide. These merchants target Thai citizens and foreign tourists who use smartphones in their daily lives and for payments of products and services as their main customer base. BAAC’s “Nong Homchan Shop” merchant members that joined this project can feel reassured by the payment security standards in accordance with Visa’s and Mastercard’s standards. Moreover, KTC is ready to offer “Payment Gateway” online payment system connection service for payments made on the website of participating project merchants, and launch a distribution channel for the e-commerce business to sell products on “KTC UShop” to jointly support products made by New Gen Hug Baan Kerd community enterprise, including Coco Valley Resort at Nan, TANEE store of Chung Sakun Baisri community in Ratchaburi, and The FIGnature at Chonburi, all of which are listed as merchants under BAAC’s Nong Homchan Shop.”
“Although Alipay payment services may have been affected by the COVID-19 pandemic, currently there are still steady incoming payments for products and services that are made by Chinese people residing in Thailand’s major cities. We believe that if Thailand reopens its borders for foreigners, this collaborative project will prepare a strong payment system in compliance with international standards for merchants to sell products and services flexibly and efficiently generate income from sales.”
Merchants that are interested in joining the Nong Homchan Shop payment service project may contact any BAAC branches nationwide or contact its call center Tel. 02-555-0555.