Thailand’s digital economy has expanded rapidly in recent years, driven by increased internet and smartphone accessibility, the growth of fintech companies, and the government’s Thailand 4.0 plan to propel an economy powered by innovation and technology. This initiative has led customers to adapt to all forms of online shopping, especially shopping via social media and ecommerce.

One of the most important tools that makes online shopping go smoothly is the payment gateway, which connects financial transactions between buyers, sellers, and banks. In this article, we’ll explain what payment gateways are—including how they are important and beneficial for financial transactions—as well as options for nonbank payment gateways in Thailand and terms and conditions for using payment gateways.

What’s in this article?

• What is a payment gateway?
  
• Payment gateway benefits
  
• Nonbank payment gateway options
  
• Terms and conditions of use for payment gateways
  

What is a payment gateway?

A payment gateway is a system that allows businesses to securely accept online payments from customers. It connects the seller’s website and the buyer’s bank, acting as an intermediary to verify the buyer’s credit or debit card and payment information. Payment gateways can also be used with ecommerce websites or applications through a robust system that allows sellers and customers to conduct online financial transactions conveniently, quickly, and securely.

• Submit payment instructions: When a shopper orders a product or service through a website or application, payment information such as credit card numbers, expiration dates, and security keys are collected. The payment gateway acts as an intermediary that evaluates the information in a secure system.
  
• Verify information: A verification request is sent to the buyer’s bank or credit card provider to confirm that there are sufficient funds and that the payment information is correct.
  
• Submit data: The system submits payment information that has been encrypted for security, and it prepares financial transactions that cannot be accessed or modified by outside parties.
  
• Authorize payment: If the payment information is correct and there are sufficient funds, the bank or card provider authorizes the payment and sends an authorization signal back to the payment gateway.
  
• Confirm payment: The payment gateway provider notifies the seller of the payment result, so that the seller can prepare to ship the product or provide the service according to the customer’s order.
  

Payment gateway benefits

Payment gateways play a key role in building customer trust and confidence in online businesses. They enable ecommerce sellers to securely accept payments through multiple channels, including credit cards, bank transfers, and e-wallets. They also help increase the chances of selling more products or services, reduce the impact of delayed payments on sales, and enable cashless transactions through secure and stable payment systems.

• Pay safely: Prevent identity theft by encrypting payment information between buyers and sellers.
  
• Increase sales: Provide customers with the convenience of choosing the payment method that works best for them—whether it’s a credit card, debit card, or e-wallet.
  
• Operate quickly and save time: Enable businesses to receive payments in real time. This reduces the time it takes to verify and confirm customer transfers, and it makes the order and payment process fast and convenient.
  
• Expand your market internationally: A payment system such as Stripe Payments can support multiple currencies, allowing businesses to expand overseas and easily receive payments from international customers. Businesses can receive payments whether they’re in local currency or through automatic currency conversion, promoting a complete buying and selling experience.
  
• Enhance management capabilities: Financial transaction tools that enhance management capabilities—such as sales tracking, payment history, and open order management—make it easier and more efficient to control and analyze sales.
  
• Build trust: Customers can have confidence in the security of their personal and financial information because payment gateways are internationally recognized for their security.
  

Nonbank payment gateway options

Currently, there are a variety of nonbank payment gateway providers in Thailand, such as Stripe, Omise, PayPal, and 2C2P, each with its own strengths and features to meet the needs of different sizes or types of businesses.

• Stripe: A popular global online payment system with high security standards and payment solutions designed for businesses of all sizes—from startups to global enterprises. It can accept payments via credit cards, debit cards, e-wallets, Apple Pay, Google Pay, and Alipay. It also supports more than 135 currencies. Stripe has a highly flexible application programming interface (API) that can be easily customized and integrated into any website or application.
  
• Omise: A Thai company with payment gateway services covering all banks and supporting various payment channels, including credit cards, debit cards, and QR codes. It stands out in terms of security and ease of use, and it is suitable for all types of online businesses.
  
• 2C2P: A system that accepts payments in Thailand and Southeast Asia. It supports credit cards, debit cards, and QR codes. One key feature includes support for installment payments, meeting the needs of businesses selling high-value products or services. It is suitable for businesses with a wide range of customer groups.
  
• GB Prime Pay: A payment gateway provider that focuses on small to medium-sized businesses (SMBs) by offering relatively low fees and easy integration with accounting systems. This allows businesses to conveniently track and manage their sales in one place.
  
• PayPal: A globally recognized, secure, easy-to-use payment service that is very popular in Thailand. It supports multiple currencies, and it’s ideal for ecommerce and businesses with a focus on international customers.
  
• TrueMoney: TrueMoney stands out as a popular e-wallet in Thailand. It focuses on e-wallet payments, is easy to use, and is accepted by both online and offline stores nationwide. TrueMoney is suitable for businesses of all sizes seeking to add e-wallet payment channels.
  

Terms and conditions of use for payment gateways

There are terms and conditions for using payment gateway services in Thailand that businesses must consider to ensure their use is secure and compliant with Thai law, such as:

• Business registration and legal documents: Businesses looking to use payment gateways in Thailand must be legally registered as a limited company or limited partnership. They must also have the necessary documentation, such as a certificate of incorporation or commercial registration, to prove their legal business status.
  
• Security and data protection standards: Businesses must comply with the Payment Card Industry Data Security Standard (PCI DSS) to ensure the security of credit card data storage and processing. They must also comply with the Personal Data Protection Act (PDPA) to protect customer privacy.
  
• Identity verification documents: The documents required depend on the requirements of each payment gateway provider, such as copies of identification cards, passports of the company’s directors and authorized signatories, and copies of the company’s corporate registration or place of business.
  
• Bank account: A bank account in Thailand in the name of the company or in the name of a director representing the company is required to connect to the payment gateway.
  
• Usage fee: There are various fees to consider when choosing a payment gateway, such as monthly fees, installation fees, withdrawal fees, or international transfer fees.
  

Payment gateways in Thailand are key to the development of ecommerce businesses. They not only facilitate online transactions by reducing steps and saving time, but they also provide security and confidence to customers, in addition to helping businesses expand their sales of products and services internationally.

Businesses that want to add online payment channels should choose a payment gateway that meets their needs in terms of security and multicurrency support. They should also search for a provider with service fees that are commensurate with overall usage.