Nowadays, selling and buying products from overseas is easier than ever. This means cross-border payments are an important mechanism driving trade in Thailand, as in the rest of the world.

Thailand’s technology and strict security measures—innovations that have revolutionized the financial industry—all help make cross-border connectivity simple. Plus, cooperation between the Thai government, banks, and financial service providers has increased efficiency and speed at every transaction step.

There are many ways to make cross-border payments, from wire transfers to payment gateways, each with fees and requirements. At the same time, new technologies such as blockchain play a key role in making overseas remittances faster, more transparent, and less complicated.

In this article, we’ll look at cross-border payments and the different methods used in Thailand. We’ll also provide an overview of the tools, regulations, and security issues that get involved.

What’s in this article?

• What are cross-border payments?
  
• What methods can be used for cross-border payments?
  
• What technologies and security measures must be used for cross-border payments?
  
• Regulations on cross-border payments in Thailand
  
• How to accept cross-border payments in Thailand
  
• Key considerations on cross-border payments in Thailand
  

What are cross-border payments?

The term “cross-border payment” refers to any financial process or transaction when a customer in one country purchases products or services from a business in another. Thailand has a long history of this process, dating back to ancient times and evolving with international trade systems. Cross-border payments have evolved with developments in technology and today, the nation boasts a fully-fledged digital banking system.

Thailand has traded with foreign nations for hundreds of years, from the Sukhothai period of the 13th and 15th centuries to more modern trade agreements such as the Burney and Bowring Treaties with the British Empire—pivotal moments that opened up the kingdom to more free trade with Western partners in the 19th century. In 1888, during the reign of King Rama V, the first commercial financial institution in Thailand, HSBC, was founded, followed by SCB (Siam Commercial Bank) in 1906.

These developments brought cross-border payments to Thailand through bank transfers with bills of exchange or letters of credit. This is considered the official beginning of international financial dealings.

Another key moment for global trade and payments was the country’s entry into SWIFT (Society for Worldwide Interbank Financial Telecommunication). Beginning in 1979, local banks joined SWIFT, resulting in faster and safer overseas money transfers and a gradual reduction in traditional paper documents such as checks or bills of exchange. From 1990 to 2000, financial institutions began offering electronic banking services, with many launching cross-border money-movement platforms.

From 2010 onward, cross-border payments can be made via various digital platforms, including digital wallet platforms such as Google Pay or TrueMoney Wallet, internet banking, and Stripe, a leading payment service provider. These financial technologies and innovations have simplified overseas settlements, making receiving and sending funds across borders fast and secure with lower fees.

Cross-border payment process

The overall workflow can generally be divided into the following main steps:

• Submit payment order: The buyer and business agree on the price, settlement unit, and—if applicable—the date and time of payment. The system then collects and secures the customer’s payment information for all parties involved.
  
• Verify information: Before the transaction is processed, the system verifies the payment details to ensure the order is valid and complies with relevant regulations. The business also sends a verification request to the customer’s bank or gateway provider to ensure they have sufficient funds and the credentials are correct.
  
• Forward information: The platform forwards the necessary records through security standards that outsiders cannot access. After verifying the customer’s identity, the gateway converts the amount using the specified exchange rate and could charge a currency conversion fee.
  
• Authorize payment: If credentials are correct and funds are sufficient, the bank or gateway authorizes the payment and sends a signal over a recognized network such as SWIFT or another certified online remittance channel.
  
• Confirm payment: Once complete, the bank or gateway verifies and confirms receipt and provides proof. The recipient then receives the money in their account, finishing the payment process.
  

What methods can be used for cross-border payments?

There are many different options available for cross-border payments in Thailand today, which can be divided into the following categories:

• Bank transfers are widely used and trusted. The SWIFT system allows parties to transmit money transfer information between banks worldwide. These transfers are highly secure and can take anywhere from two hours to several business days. They often carry higher fees due to charges by both the sender’s and recipient’s banks as well as intermediaries.
  
• Money transfer platforms such as Western Union or MoneyGram play an important role. They enable fast remittances and often have lower fees than traditional banks. Modern tools make these dealings safe and efficient.
  
• Credit and debit cards are convenient for customers and are usually overseen by banks or card issuers with strict safeguards. They might have higher exchange rates and additional charges than other methods and suit small purchases.
  
• Digital wallets have grown popular domestically, and providers such as TrueMoney Wallet, YouTrip, or DeepPocket facilitate swift and convenient overseas settlements.
  
• QR codes are a fast and secure way to send payment information. Familiarity inside Thailand has spurred their use in neighboring regions such as Hong Kong, Malaysia, Singapore, and Vietnam, cutting complexity for users.
  
• Payment gateways such as Stripe act as intermediaries between the customer and the business. They verify, route, and receive credentials before forwarding them to the recipient’s bank or platform. Equipped with advanced fraud detection tools and data encryption, gateways reduce risk and support payments in multiple currencies.
  
• Bank drafts and letters of credit are traditional paper-based methods often used in import and export businesses, relying on bank credit to guarantee that the recipient will receive the specified amount. They are safe and highly reliable, as the bank validates accuracy and serves as guarantor.
  

What technologies and security measures must be used for cross-border payments?

Making cross-border transactions smooth and fast requires financial innovations and security measures to govern the process. Thai banks and service providers are using the following:

• SWIFT: A global interbank communications network that routes financial messages and data through encryption and authentication.
  
• Payment Card Industry Data Security Standard (PCI DSS): An international standard to protect credit card data and related transactions, including encryption, access restrictions, security assessments, and penetration testing requirements.
  
• Blockchain: A distributed digital ledger that links “blocks” of records in an immutable “chain”; decentralization cuts tampering risk and increases trust.
  
• Encryption: A process that converts data from a readable and understandable format (plaintext) to a format that cannot be read or understood (ciphertext), securing transmission between sender and recipient.
  
• Multifactor authentication: A security mechanism that requires multiple credentials (password, one-time code, or biometrics) before access is granted.
  
• Artificial intelligence (AI): Technology that enables computers and machines to simulate human learning, reasoning, problem-solving, and decision-making. It can be used for data analysis in fraud detection and anti-money laundering efforts by analyzing patterns to flag for unusual activity, as well as detect irregularities in cross-border transactions.
  
• Know Your Customer (KYC): A rigorous identity verification process done through document scans and biometrics, lowering the risk of illicit financial activities.
  
• Intrusion detection and intrusion prevention systems (IDS/IPS): Tools for detecting and mitigating potential attacks or intrusions to networks or information systems. Installing IDS/IPS allows immediate response to threats by closing the connection from the source of the attack. The system controls access rights to data and systems using the principle of least privilege.
  

Regulations on cross-border payments in Thailand

Thailand has strict rules and practices to control cross-border payment transactions according to guidelines set by the Bank of Thailand. These guidelines aim to control the amount of money flowing in and out of the country, maintain the stability of the foreign exchange market, and combat money laundering, tax evasion, and other illegal or unethical financial actions. Here are the main regulations businesses in Thailand must be aware of:

• 1958 Currency Act: This law controls foreign exchange, requiring international transactions to comply with all procedures and documentation specified when transferring money abroad.
  
• 2017 Payment System Act: This law regulates licensing or registration for payment service providers handling cross-border money transfers and sets standards issued by the Bank of Thailand.
  
• Anti-money laundering measures: Service providers must comply with the laws and guidelines of the Anti-Money Laundering Office (AMLO), which inhibits the use of the financial system or transactions to conceal, transform, or change the source of assets obtained from illegal activities such as drug trafficking, corruption, and illicit trade.
  
• Regulations to prevent terrorism: Operators and financial institutions must comply with measures to prevent the support of terrorism, which include monitoring and reporting large or unusual transactions to relevant authorities.
  
• Security measures: Gateways must comply with information technology and data security standards regarding encryption, loss prevention, KYC, and CDD (customer due diligence). They must have contingency plans and risk management practices to mitigate potential user impacts.
  

How to accept cross-border payments in Thailand

Accepting cross-border payments opens up greater financial opportunities for Thai enterprises. Whether exporting goods, selling products online, or offering freelance services, choosing a secure and efficient payment method can simplify your operations while minimizing fees and exchange rate concerns.

• Understand your customers: Research where they are located, which currencies they use, and their preferred payment methods. This insight allows you to design a system that is convenient, secure, and tailored to their needs—helping to build trust, increase customer satisfaction, close more sales, and encourage long-term loyalty.
  
• Choose a payment provider that meets your needs: Compare options like SWIFT transfers or popular payment gateways such as Stripe. Each provider has unique advantages, such as competitive fees, favorable exchange rates, multicurrency support, and added features such as fraud protection or customer service tools.
  
• Set up a merchant account: After selecting your provider, you must open a merchant and bank account supporting international transactions. Depending on their requirements, setting up a merchant account typically requires documentation such as a company registration certificate, commercial license, or other paperwork. This gives you access to tools for verifying payments, tracking history, and generating reports—key resources for managing income and planning for long-term business growth.
  
• Implement fraud prevention and risk management measures: Protecting your business from fraud is paramount. Implement two-factor authentication, anomaly detection, IP address verification, and credit card checks linked to global databases. These steps reduce identity theft and enhance trust between buyers and sellers. Staying informed about emerging threats and compliance updates allows you to effectively adjust your risk management strategies.
  
• Manage exchange rate risk: Exchange rates are constantly changing. If a business accepts foreign payments and then exchanges them immediately, it can hurt its performance. Choose a service provider with automatic currency conversion and real-time APIs (application programming interfaces) so displayed prices match actual value, solving the issue of exchange rate fluctuations. Opening a foreign currency deposit (FCD) account and monitoring markets regularly can also help.
  
• Consider taxes and legal issues: Business owners must familiarize themselves with Thai tax laws and regulatory requirements, including value-added tax (VAT), import duties, sales taxes, anti-money laundering regulations, and foreign exchange control laws enforced by the Bank of Thailand and the AMLO. Consulting with qualified accountants or legal professionals or referring to official guidelines from relevant government agencies is highly recommended to ensure transparent, compliant, and secure operations. Proper understanding and planning will help you manage tax obligations accurately and avoid potential legal issues.
  
• Provide quality customer service: Maintain clear communication and prioritizing the customer experience throughout the payment process. This includes providing transparent, detailed information about procedures and fees and responding promptly to any questions or concerns. When customers feel informed and supported, they’re more likely to be satisfied with their experience and anticipate returning for future purchases or services.
  
• Review and analyze financial transactions: Leverage service provider dashboards or integrate internal analytics to review sales, payment trends, chargebacks, and buyer satisfaction. Analyzing this data gives you valuable insight into your business performance, helping you identify growth opportunities, spot potential issues, and make informed decisions—refine strategies accordingly.
  

Accept online payments with Stripe

Stripe is an excellent tool for enterprises looking to accept cross-border payments. Supporting credit and debit cards from more than 195 countries and numerous local options, Stripe scales from startups to global firms by offering online and offline (via point-of-sale [POS] terminals) payment methods.

Thanks to state-of-the-art security measures, Stripe’s technology also reduces the risks involved in cross-border money transfers.

Key considerations on cross-border payments in Thailand

Cross-border payments allow businesses to expand internationally, foster investment, and give entrepreneurs access to global markets. As the world becomes increasingly interconnected, offering various remittance options ensures customers can choose the best method for their needs.

Advancements in digital technology and security and risk management innovations have significantly improved cross-border transactions’ speed, safety, and reliability. Features such as multifactor authentication, real-time verification, automated currency conversion, and data encryption help protect users while enhancing the overall payment experience.

Embracing modern solutions and adopting the right tools are important for businesses aiming to grow and contribute to a sustainable, thriving global economy.