Ecommerce has transformed Thai people’s shopping behavior with convenience, speed, and safety. This includes a wide selection of products at reduced prices, such as fashion items, electrical appliances, household items, parenting products, food, and beverages. Ecommerce offers various payment channels, such as mobile banking, digital wallets, and buy now, pay later (BNPL). These channels support customer needs and lifestyles and include promotions to stimulate sales and encourage spending.

This article outlines the history of ecommerce in Thailand, explores the most popular payment methods on today’s ecommerce platforms, and provides insight about choosing a payment method.

What’s in this article?

• What is ecommerce?
  
• The history of ecommerce in Thailand
  
• Popular ecommerce payment channels
  
• How to choose payment channels on ecommerce platforms
  
• Accepting payments via ecommerce with Stripe
  
• The convenience of ecommerce payments
  

What is ecommerce?

Ecommerce is the buying and selling of goods and services over the internet. Customers can choose products, pay for them online, and have them delivered to their homes. Many customers find ecommerce to be convenient and time-saving. Ecommerce businesses are becoming more and more popular because they can reach people all over the world, and products are available at attractive prices, often lower than physical stores. The most popular ecommerce platforms in Thailand include Lazada, Shopee, Temu, and TikTok Shop.

The history of ecommerce in Thailand

Ecommerce began to develop in Thailand in 1995, along with the expansion of internet usage in the country. Some private companies started developing websites as channels for disseminating information and selling products. In addition, government agencies—such as the Ministry of Commerce (MOC) and the Electronic Transactions Development Agency (ETDA)—have promoted the use of information technology to advance trade and ecommerce knowledge, which is considered an important starting point for ecommerce in Thailand.

In the early 2000s, the ecommerce market in Thailand began to grow more noticeably. This was due to the expansion of internet connectivity and the increase in personal computer usage. This led to the development of early ecommerce platforms, such as TARAD.com, Weloveshopping, and Pantipmarket.

Since the 2010s—when smartphones and social media began to significantly influence customers’ daily lives—both small retailers and big brands have turned to online channels as primary marketing tools. In 2012, global ecommerce giant Lazada entered the Thai market, followed by Shopee in 2015. In 2020, during the COVID-19 pandemic, stores were unable to open, which further impacted ecommerce in Thailand. Currently, various promotions that stimulate sales continue to drive ecommerce market expansion in Thailand, including flash sales, 5.5 and 11.11 promotions, buy one get one free options, and free shipping.

Popular ecommerce payment channels

Before accepting online payments or choosing additional digital payment channels, it is important for businesses to thoroughly study and analyze each payment channel. Below, we discuss the strengths and weaknesses of the popular digital payment channels in Thailand:

Mobile banking

Mobile banking applications allow customers to transfer money and pay for goods or services instantly without using cash. They also make transactions fast and secure with identity verification via personal identification number (PIN) or biometric scan, such as recognition of a fingerprint or face.

PromptPay

This is a real-time money transfer and receiving service in Thailand. Customers can link their bank accounts with their phone numbers or national ID card numbers. They can receive and transfer money without any fees if the amount is within the specified limit. Transactions via PromptPay can reduce steps and fees compared to other forms of money transfer.

Digital wallets

These are online money accounts customers can use to pay for products or services. They can top up their wallets through various channels, such as bank transfers, automated teller machine (ATM) top-ups, various counter services, and credit or debit cards. Popular digital wallet channels in Thailand include LINE Pay, ShopeePay, and TrueMoney.

Quick response (QR) codes

A customer can pay via QR code by scanning the code with a bank app or digital wallet app using a mobile phone. The customer logs in and selects the “Scan QR Code” menu. Then, they can make a payment immediately without carrying cash or cards, reducing the risk of credit card information theft. QR codes are convenient, fast, and suitable for everyday use and online shopping.

Payment link

A payment link is a uniform resource locator (URL) generated and sent to customers via communication channels used for business, such as social media, email, or short message service (SMS). When customers click the link, they are taken to a secure online payment page. Payment links support a variety of payment methods, such as credit cards, PromptPay, or digital wallets. They can also help businesses accept online payments without a website, application, or application programming interface (API). Payment links can help reduce steps, making the process of accepting payments via links more convenient and faster.

Credit and debit cards

Credit and debit cards can be used for online or in-person transactions using information on the card, including the card number, expiration date, and card verification value (CVV) code. A credit card is a credit line from a financial institution that allows the cardholder to spend first and repay later. Debit cards deduct money from customer accounts immediately after transactions, making payments convenient, fast, and secure. It’s important for businesses to choose a service provider with security standards and card fraud prevention systems, such as Payment Card Industry Data Security Standard (PCI DSS), Three-Domain Secure (3D Secure), and one-time password (OTP) authentication.

Buy now, pay later (BNPL)

BNPL is a platform that allows customers to pay in installments ranging from 3–12 months, depending on the agreement and provider. These payments are usually interest-free or require a down payment. If paid on time, customers can benefit from low interest rates that immediately reduce the burden of spending and can increase convenience in daily shopping. Popular BNPL platforms in Thailand include Atome, Lazada PayLater, PayLater by Grab, Pay Next by TrueMoney Wallet, and SPayLater by Shopee.

Prepaid card

This payment method allows customers to purchase prepaid cards that contain a specific value. When paying for goods or services online, the system will deduct money directly from the card, eliminating the need to link it to an additional bank account or credit card. This can increase security—if the card is lost or stolen, the loss is limited to the amount on the card. Prepaid cards are similar to using a digital train ticket or an online game top-up card.

Payment gateway

A payment gateway is an intermediary system that helps securely verify and send payment information from a store to a card provider or bank. This includes payments via an ecommerce website or app. When a customer makes a payment, the system will encrypt the data and verify its accuracy before sending it to the financial institution for approval. With international standards and advanced security systems—such as PCI DSS and various fraud prevention features—payment gateways can help businesses receive payments safely and quickly, without having to manage customers’ credit card details.

Cash on delivery (COD)

This payment method allows customers to pay for products upon receipt without having to transfer money or pay before delivery. This can increase customer confidence that they will receive the product before paying. Customers can pay in cash or by bank transfer. Mobile banking and SoftPOS payments can reduce shopping cart abandonment rates and accommodate customers who do not have credit or debit cards.

Near-field communication (NFC) technology

NFC technology is used in contactless payments, such as tapping a credit or debit card on NFC-enabled point of sale (POS) or SoftPOS card readers. Customers can make payments quickly and conveniently by tapping their devices, without having to insert a card or enter a PIN (in some cases).

How to choose payment channels on ecommerce platforms

Embracing various payment methods enables businesses to grow sustainably in the digital age. Businesses should consider these factors when choosing a payment method:

Needs of the customer base

Businesses can use marketing data to decide which payment methods to offer. This data can reveal how target customers prefer to pay for products or services. Stripe can help ecommerce businesses choose the right payment method.

Business needs

Different types of businesses have different needs. For example, small businesses might want to choose a service with low fees. Larger businesses might want to choose a service that transfers money quickly and has the highest security standards. Fees might be a secondary concern.

Transaction fees

It is important to understand the details of transaction fees and hidden fees. This can help prevent a business from incurring unnecessary additional costs, such as fees for transactions, money transfers, or special features. Examples of special features include sales report generation or customer account maintenance.

Currency exchange

For businesses with a large number of international customers or transactions, it is important to study currency conversion fees and foreign exchange rates. This information can help businesses manage exchange rate fluctuations, fraud risks, and sales revenue.

Security and fraud prevention systems

Ecommerce businesses should offer high-security payment methods that protect both customers and businesses from fraud, such as two-factor authentication and data encryption. This can help customers feel more confident in making transactions. In addition, banks or payment service providers should develop security features to improve security at all times.

Ecommerce platform compatibility

Businesses should ensure that their payment methods are compatible with their ecommerce platform. Additionally, some payment methods require additional connectivity to work, which can be costly and time-consuming.

Accepting payments via ecommerce with Stripe

Stripe Payments is a leader in innovative payment infrastructure with experience and expertise in helping businesses make cross-border payments simple and compliant. Payments has a multifaceted business engine that makes it easy to scale your business. Accept payments from customers around the world with support for cards from more than 195 countries and 135 currencies, along with deep market knowledge and expertise.

Stripe can accept a variety of domestic payments. This can help you meet your customers’ every need, whether they’re paying online or at a POS terminal. Stripe’s payment solutions are built for every business. From startups to global enterprises, reduce the risks involved in cross-border money transfers.

The convenience of ecommerce payments

The rapid growth of ecommerce in Thailand has shifted customer spending behavior from physical stores to online shopping. Thai customers appreciate the convenience of ecommerce, with 24/7 shopping options, secure payment processes, and fast delivery.

It’s important to choose a payment service provider that meets your customer and business needs. This can include accepting multiple payment channels, supporting currency exchange, being easily customizable, and having a secure system. International standards can help improve the ecommerce spending experience, making it smoother, more modern, and more sustainable.