In the digital era, fintech is the future of financial and investment systems. Fintech companies are experiencing rapid growth in Thailand and worldwide. Fintech combines technology with financial innovation to create new products and services. This is particularly true with payment systems, which are the core of every business.

Choosing comprehensive and suitable financial solutions is an important foundation. It enables fintech startups to compete globally and achieve long-term success.

In this article, we explore Thai fintech, including its infrastructure, technologies, security measures, and laws. We also provide examples of successful fintech companies in Thailand and discuss payment systems for fintech startups.

What’s in this article?

• What is fintech?
  
• An overview of Thai fintech
  
• Fintech infrastructure and technology
  
• Deployment of AI
  
• Payment systems for fintech startups in Thailand
  
• Security measures and laws for Thai fintech
  
• Examples of fintech companies in Thailand
  
• How Stripe Connect helps fintech companies grow
  

What is fintech?

Financial technology or “fintech” helps develop financial innovations to make financial systems and transactions more convenient, faster, safer, and more accessible. This can include transferring money via bank applications or using online lending, automated investing, and credit analysis with artificial intelligence (AI).

Fintech can help customers have more convenient and fast-paced lifestyles and can provide new opportunities for various businesses. This includes both large organizations and startups seeking to adapt and grow in the digital economy.

An overview of Thai fintech

Fintech in Thailand has grown rapidly due to customers’ increased use of digital transaction services, especially after the COVID-19 pandemic. This has caused channels for cashless payments to expand rapidly. This growth is supported by factors such as widespread smartphone use, access to high-speed internet, expansion of ecommerce businesses, and the trend toward a cashless society.

There is also strong support from the Bank of Thailand and various government policies through the National E-Payment project. The goals are to strengthen financial infrastructure, install governance to build confidence among customers and investors, and develop the PromptPay system. This infrastructure is important for digital transactions.

These policies have led to Thai quick-response (QR) code payments, where customers can conveniently and quickly scan QR codes to pay for products and services. The development of cross-border QR code payments supports and connects international transactions. It is already in use in Indonesia, Japan, Malaysia, Singapore, and Vietnam.

These factors have helped Thai fintech grow and compete internationally. Currently, there are various financial services from several fintech startups that are driving the digital finance industry. These include digital wallets, buy now, pay later (BNPL) services, peer-to-peer (P2P) lending, international wire transfer solutions, stock trading applications, and payment gateways.

Fintech infrastructure and technology

The fintech industry in Thailand requires sound business ideas along with strong infrastructure and technology to support sustainable growth.

Open banking system

Open banking allows fintech companies and third-party developers to systematically access bank data and services with customer consent. It must comply with security regulations and relevant laws through an application programming interface (API). This can increase transparency, competition, and improvement to help facilitate the development of new and better financial products and services.

Blockchain technology

Blockchain acts as a decentralized ledger technology (DLT) system that provides transparency, security, and traceability. It is used in many sectors, such as blockchain trials in Project Inthanon for interbank money transfers and to enhance the efficiency of securities trading. The development of a Central Bank Digital Currency (CBDC) is underway in Thailand. This payment system will help reduce transaction costs and increase access to financial services.

Digital identity verification technology

Fintech companies should have a system for verifying customer identity and data. These are known as Know Your Customer (KYC) and Customer Due Diligence (CDD). They are used to verify and confirm customers’ identities with ID cards or other relevant documents before providing services. Thailand has started using digital identity verification systems that fintech companies can use to prevent identity fraud or data theft. They can also help customers open accounts or conduct online transactions.

Deployment of AI

AI can help improve the efficiency of fintech systems in various ways, including the following:

• Fraud detection: AI can help detect atypical transactions in real time. This can prevent fraud related to illegal activities or money laundering and automatically block high-risk payments.
  
• AI credit scoring: For customers without a banking history, mobile phone use and online purchase history can be used to calculate creditworthiness, predict risk, and improve the lending process.
  
• Chatbots and virtual assistants: These are used for customer service, sales, information, and general assistance. AI can enable 24/7 automated customer service, reduce operational costs for financial institutions, and create more convenient and secure customer experiences.
  
• Text and sentiment analysis: Companies can use natural language processing (NLP) powered by AI to analyze social media, reviews, and complaints. This can help assess customer satisfaction, which can help companies adjust marketing and service strategies.
  

Payment systems for fintech startups in Thailand

Payment systems are considered the core of business operations for fintech startups. In Thailand, there are various payment channels available to suit this business model:

Credit and debit cards

Online transactions and transactions using card readers involve using the information on the card. Credit cards provide lines of credit from financial institutions for cardholders to spend first and repay later. Debit cards deduct money directly from customer accounts. Both can be used for online and in-store payments.

For an online transaction, the customer must enter their card number, expiration date, and card verification value (CVV) code on the website or app to confirm the payment. For offline transactions, the customer must swipe or tap the card on the company’s electronic data capture (EDC) terminal and confirm by signing or entering a personal identification number (PIN).

Payment gateways

Payment gateways are centralized systems that help verify and securely send and receive payment information between businesses and card service providers or banks. This can be via credit or debit card payments or digital wallets. When a customer places an order, the system encrypts the data and verifies its authenticity before sending it to the financial institution for approval. This allows businesses to accept payments securely and quickly without having to manage customer credit card information. Payment gateways also feature security systems and various fraud prevention features.

Cryptocurrency

Cryptocurrency is a form of digital currency that uses blockchain technology to record and verify transactions. Examples of popular cryptocurrencies include Bitcoin and Ethereum. In Thailand, there are popular cryptocurrencies, such as Bitkub Coin from Bitkub Group and JFIN Coin from Jaymart Group. Cryptocurrency is mainly used in Thailand for investment and speculation rather than for making payments for goods and services. Although there are some customers who use cryptocurrency to pay for goods online, the number is still relatively small due to legal restrictions and acceptance by operators.

Mobile and internet banking

Financial transactions via a mobile phone banking app or a bank’s website allow customers to transfer money, pay for goods and services, and check transaction status in real time. These payment methods are familiar, widely used, and reliable because they are direct digital payment services provided by banks. They also have high security standards and use authentication systems, such as PIN verification or biometric scanning.

PromptPay

This is a real-time money transfer and receiving service in Thailand. Customers can link their bank accounts with their phone numbers or ID card numbers to receive and transfer money without fees and within specified limits. Transactions via PromptPay have lower fees compared to other forms of money transfer. They can be used by online and offline businesses and are available to individuals and legal entities. PromptPay is regulated by the Bank of Thailand, which has strict safety and customer protection regulations.

Digital wallets

Digital wallets allow customers to top up their balances via various channels, such as bank transfers, automated teller machine (ATM) deposits, service counters, or links to credit or debit cards. This can provide convenient, secure, and fast payments for goods and services. It is a popular payment method in Thailand, and examples include TrueMoney, LINE Pay, and ShopeePay. They often offer promotions, discounts, special privileges, point accumulation, and cashback to encourage customers to pay via digital wallets.

QR codes

To pay via QR code scanning using a mobile banking or digital wallet app, the customer logs in and selects the “scan QR code” menu. They can then make payments instantly without carrying cash or cards. This can reduce the risk of credit card data usage, eliminate the need to enter account numbers manually, and minimize errors or inconvenience in filling out information. This convenient and fast method can be used with various banking and digital wallet apps, making it suitable for daily use and online shopping.

Payment links

A business can generate and send a payment link to customers via communication channels used for buying and selling. These include social media, email, and short message service (SMS). When a customer clicks the link, they are taken to a secure online payment page that supports various payment methods. These can include credit cards, PromptPay, and digital wallets.

Payment links allow businesses to accept online payments without a website or application. There is no need to create a shopping cart system or connect to an API, both of which can make the process more complicated. Payment links simplify the transaction process with convenient and fast payments. They also can help reduce errors in money transfers, as the system automatically fills in the amount.

BNPL

BNPL allows customers to make payments in regular installments for 3–12 months. This typically features low or no interest if each payment is made on time. This can increase cash flow convenience for everyday purchases. It can also stimulate sales and increase the value of each purchase. BNPL can also boost opportunities to sell high-priced products to customers who might not have the full amount available in cash but are ready to pay in installments. BNPL providers include Atome, Lazada PayLater, PayLater by Grab, Pay Next by TrueMoney, and SPayLater by Shopee.

Security measures and laws for Thai fintech

Safety measures and laws related to fintech in Thailand are established by the Bank of Thailand and various regulatory agencies.

Anti-Money Laundering Act

Thailand’s Anti-Money Laundering Act BE 2542 (1999) stipulates that fintech businesses must adhere to strict regulations. These include CDD and KYC, transaction reporting, and data retention. This can help ensure transparency and prevent the misuse of transaction platforms for money laundering, illegal activities, or financial terrorism. Fintech providers are responsible for detecting suspicious transactions and reporting them to the Anti-Money Laundering Office (AMLO).

Act on Computer-Related Offenses

The Act on Computer-Related Offenses BE 2550 (2007) is used to control and prosecute acts related to computer crimes, such as system hacking, malware distribution, or unauthorized access to data. It requires fintech service providers to implement security measures to prevent data theft, such as data encryption, multifactor authentication, and regular penetration testing.

Payment Systems Act

The Payment Systems Act BE 2560 (2017) is a regulatory framework for payment systems and payment services in Thailand. This law requires payment system providers and electronic fund transfer service providers to register or obtain a license from the Bank of Thailand. They must also report suspicious or high-risk transactions to maintain transparency and ensure the security of digital financial transactions.

Personal Data Protection Act

The Personal Data Protection Act BE 2562 (2019)—also known as “PDPA”—requires fintech service providers to securely collect, use, and disclose customers’ personal data. Providers must always have a system to obtain consent from the data owners and provide customers with the rights to access, correct, or withdraw their data. This is aimed at building trust and reducing the risk of personal data breaches. The Personal Data Protection Committee (PDPC) serves as the main regulatory authority.

International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) 27001

Fintech companies that provide payment systems must adhere to the ISO/IEC 27001 security standards. These standards set guidelines for establishing an information security management system (ISMS) that performs activities such as identifying, analyzing, and assessing data risks, creating policies, implementing measures to prevent data leakage, and reducing cybersecurity risks. This ensures that customers’ financial information and service systems are strictly protected and that immediate alerts are issued in the event of a data breach.

Payment Card Industry Data Security Standard (PCI DSS)

Fintech companies are required to comply with PCI DSS to prevent leaks of credit card, debit card, and related transaction data. The security requirements include data encryption, user authentication, restriction of access to information, and continuous system testing to prevent attacks and data theft from external sources. This is to ensure that the storage and transmission of card and financial transaction data are carried out securely and according to international standards.

Regulatory Sandbox

The Bank of Thailand provides opportunities for fintech companies and financial institutions to participate in the Regulatory Sandbox to test technology applications and further develop new financial innovations. This allows them to try out products, services, or business models in a supervised environment with safety regulations and close adherence to relevant laws. It can help reduce risks, achieve practical results, shorten time to market, and improve business processes for greater efficiency before launching real services.

Measures to protect financial service customers

The Bank of Thailand and the Office of Consumer Protection (OCP) requires that fintech companies implement measures to protect financial service customers. The goal is to ensure fairness and transparency and prevent harm to the public using financial services. Examples include transparent information disclosure, regulation of advertising, provision of complaint channels, equal access to financial services, and financial education, among others.

Examples of fintech companies in Thailand

The following are some examples of notable fintech companies that are currently operating in the Thai financial industry:

• Bitkub
  This is one of Thailand’s leading digital asset exchange platforms that is distinguished by its creation of a cryptocurrency environment. It offers digital asset management and investment services for assets such as Bitcoin and Ethereum. Bitkub is suitable for businesses that want to experiment with accepting digital asset payments or are looking for payment solutions using cryptocurrency or crypto tokens.
  
• DeeMoney
  This Thai fintech company specializes in cross-border money transfers. It is designed to help Thai people and those living in Thailand conduct cross-border transactions quickly and securely. DeeMoney’s highlights include favorable rates, fast transfers, and transparent fees, making it ideal for import-export businesses or companies that need to regularly pay foreign accounts.
  
• Finnomena
  This company developed a digital wealth management platform—or wealthtech platform—that provides investment advice based on risk profiles. It includes tools and educational content for Thai investors. Finnomena is considered a Thai fintech company to watch as a leader in wealthtech. It is suitable for businesses seeking content partners to enhance their customers’ financial knowledge.
  
• Jitta
  This is a data-driven analytics platform that uses algorithms to score company quality and evaluate stock value. This allows investors to identify attractive stocks in various markets worldwide. Jitta is an example of a Thai business that has been closely followed and can build a cross-border customer base that includes both professional and retail investors. It is suitable for businesses that require easily understandable fundamental analysis and in-depth investment insights.
  
• MONIX
  This company provides microloans for low-income individuals, operating as a joint venture between SCBX and Abakus Group from China. They developed the FINNIX app to reduce reliance on informal lending, which is one of Thailand’s major financial issues. MONIX’s design is secure and user-friendly and requires no financial documents or guarantors, allowing for quick identity verification and loan disbursement.
  
• Rabbit Care
  This marketplace platform under the Rabbit Group provides comparison and consultation services for financial and insurance products through digital channels. Experts are available 24 hours a day, and they cover life insurance, other types of insurance, credit cards, loans, technology, and digital platforms. This makes it easier for customers to make decisions and get results quickly, often within 30 seconds.
  
• Stripe
  This global fintech leader has entered Thailand to help simplify the country’s complex payment systems with comprehensive financial solutions. Stripe supports payments in more than 135 currencies and features real-time AI-powered fraud prevention that automatically blocks high-risk transactions. It is ideal for businesses seeking a flexible payment system or aiming to expand their operations internationally.
  

How Stripe Connect helps fintech companies grow

For fintech startups, payment systems are a core part of the business. Stripe Connect is a solution designed to support comprehensive payment management, especially for businesses with multiple parties involved, such as marketplaces or financial applications. Connect can help Thai fintech companies grow steadily and remain competitive within global digital finance.

Stripe Connect orchestrates money movement across multiple parties for software platforms and marketplaces. It offers quick onboarding, embedded components, global payouts, and more.

Connect can help you:

• Launch in weeks: Use Stripe-hosted or embedded functionality to go live faster, and avoid the up-front costs and development time usually required for payment facilitation.
  
• Manage payments at scale: Use tooling and services from Stripe so you don’t have to dedicate extra resources to margin reporting, tax forms, risk, global payment methods, or onboarding compliance.
  
• Grow globally: Help your users reach more customers worldwide with local payment methods and the ability to easily calculate sales tax, VAT, and GST.
  
• Build new lines of revenue: Optimize payment revenue by collecting fees on each transaction. Monetize Stripe’s capabilities by enabling in-person payments, instant payouts, sales tax collection, financing, expense cards, and more on your platform.
  

Learn more about Stripe Connect, or get started today.