Nowadays, smartphones are not just a communication tool; they have become an integral part of many people’s daily lives, and in some cases, a means of making “all-day” payments. Mobile applications have played a significant role in altering the spending behavior of Thai people. Tap, scan, or press options now dominate checkout, replacing traditional manual methods such as cash and coins for online shopping, utility bills, and person-to-person (P2P) transfers—all completed with just a few taps on a phone screen.

This article will guide you through mobile-based payments, exploring the most popular methods in Thailand. It will cover types of usage, how these apps work, and provide services to support the creation of efficient, secure, and ready-to-use solutions in the Thai market.

What’s in this article?

• What is a mobile payment application?
  
• Get to know mobile payment applications in Thailand
  
• Popular mobile payment apps in Thailand
  
• Types of mobile payment app usage
  
• How do mobile payment applications work?
  
• How Stripe Payments can help
  

What is a mobile payment application?

Mobile payment applications are software that users can download and install on their devices to facilitate and simplify financial transactions. The tool will be connected to bank accounts, credit cards, or a digital wallet, utilizing a security system to prevent fraud. It allows people to transfer money as well as pay for goods and services, including bills, quickly, securely, and with traceability over the internet or via NFC (near-field communication) technology—eliminating the need to use cash or cards for checkout.

Get to know mobile payment applications in Thailand

Phone-based payments in Thailand began with mobile banking—various commercial banks initially developed it. Kasikornbank was the first financial institution to launch the K PLUS app in 2010, which offered basic features for checking balances, sending funds, and settling charges through a smartphone tool. In 2016, the Bank of Thailand launched PromptPay. This real-time payment infrastructure enables fast and secure P2P transfers and checkout via phone numbers or national ID card numbers.

Currently, mobile app payments in the country cover many aspects of daily life, especially among the younger generation and those living in Bangkok and its vicinity, including major cities. Users can conveniently conduct multiple transactions through PromptPay, paying for goods and services by scanning a QR code, spending via digital wallets, or settling utility bills.

Popular mobile payment apps in Thailand

Commonly used payment apps in Thailand include banking tools, wallets, and merchant platforms across the following channels:

Mobile banking
Financial tasks are conducted through mobile banking applications. People send funds, pay bills, purchase goods or services, use PromptPay, scan QR codes to complete a purchase, or instantly top up their phones. They can also check the transfer status in real time. Popular bank apps include K PLUS from Kasikornbank, SCB EASY from Siam Commercial Bank, and Krungthai NEXT from Krungthai Bank.

Digital wallet
This online money account lets users add funds through multiple channels, such as account transfers, ATM top-ups, various counter services, or linking with credit or debit cards to pay in-store and online or by scanning a QR code. Leading digital wallet providers include Paotang, GrabPay, LINE Pay, ShopeePay, and TrueMoney Wallet. GrabPay and LINE Pay operate inside their parent apps—Grab, the leading on-demand delivery platform, and LINE, Thailand’s most used messaging tool—rather than as standalone applications.

Merchant apps
These are online store or service apps that businesses use to sell products and services, with a built-in checkout system. Customers can select items and complete purchases in one go. Pay by credit or debit card, scan the QR code, or use mobile banking or a digital wallet. Examples of well-known merchant apps in the country are 7-Eleven, Lazada, LINE MAN Wongnai, M Card (via The Mall Group), Shopee, and The 1 (via Central Group).

Buy now, pay later
Buy now, pay later, or BNPL, is a platform that allows buyers to pay in installments ranging from 3 to 12 months (depending on the agreement and provider), typically with interest-free terms or a down payment. Low interest rates, if paid on time, are an option that immediately reduces the burden of spending and increases convenience in daily shopping. Popular BNPL platforms in Thailand include Atome, Grab’s PayLater, Lazada PayLater, Pay Next by TrueMoney, and SPayLater by Shopee.

Types of mobile payment app usage

Mobile payment apps fall into three main categories by usage:

• Closed system apps: These tools work exclusively for activities within the loop and cannot process payments to stores or services outside the system. It often functions as both a checkout tool and a loyalty program, similar to Starbucks, which allows members to redeem drinks and discounts, or 7-Eleven Wallet, which enables purchases and point accrual at 7-Eleven stores. The only advantage is that it offers exclusive promotions for members and is easy to use. The closed-loop app can reduce transaction fees for sellers and provide valuable marketing insights from customer usage.
  
• Open system apps: Applications such as TrueMoney, LINE Pay, or Shopee Pay enable payments across a wide range of merchants and services, and also connect to bank accounts and credit cards for purchasing goods and services from many retailers. Widely supported and convenient for making transactions, these tools serve as digital wallets where customers can store their debit, credit, or membership cards and use NFC to interact with point-of-sale (POS) terminals at the store.
  
• Peer-to-peer payment apps: These apps facilitate direct P2P movement of funds without relying on merchant systems. For instance, transferring money through bank tools or PromptPay services, which are available in bank apps such as K PLUS, SCB EASY, Krungthai NEXT, or LINE Pay. Sending funds to friends via LINE chat is as simple and fast as sending a message.
  

How do mobile payment applications work?

When a person decides to make a mobile payment, the app’s core mechanisms work together securely to protect user data. Here’s a rundown of the steps from start to finish:

• Authentication: The system first authenticates and verifies your identity through biometrics, password, or PIN. The app then creates a token (tokenization) in place of actual card information to protect your card number and personal details.
  
• Communication: The token and payment details are encrypted and sent over the communication network to the service provider’s transaction system through various channels such as mobile banking tools, QR code, mobile web, or merchant apps. The financial institution then receives a request with details such as the amount and identity verification information.
  
• Authorization: The provider matches the token with securely stored physical card data and then sends the request to the network (e.g., Visa or Mastercard) or the issuing bank to request credit limit approval. The financial institution will verify the remaining balance, the individual’s fraud history, and other relevant factors. If all checks pass, the system sends back an approval.
  
• Confirmation: The approval result passes through multiple layers to the terminal and the user’s app. A payment confirmation message is displayed on both sides, along with a transaction reference code (transaction ID), allowing instant verification of success.
  
• Settlement: After the checkout is complete, there is still actual money moving between the institution, the payee, and the card network behind the scenes. The seller’s bank communicates with the buyer’s bank, transferring the agreed amount as a net payout to the merchant, typically within one to two business days.
  
• Data storage: The app records the transaction history, the merchant stores the electronic receipt, and the payment will retain PCI DSS–compliant data for at least five years, allowing buyers and sellers to track activity, issue refunds accurately, and efficiently manage accounts.
  

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.