“Reflections from Walking in Thailand” Part 11 | Why are credit cards difficult to use in Thailand, and why is QR payment the mainstream?

── Crossing the “invisible walls” of financial infrastructure and institutional design

In Bangkok, have you ever felt that
“there are surprisingly many shops where credit cards cannot be used”
or that “even without cash, you can get by just with a QR code”?

While credit card payments are mainstream in Japan and the West, in Thailand, a QR code payment system called “PromptPay” has deeply permeated every corner of society. Why did such a difference emerge? We will explore the reasons by unraveling the financial infrastructure, institutional design, cultural customs, and political-economic background of Thai society.

💳 What are the reasons why credit cards are difficult to use?

First, let’s organize the reasons why the spread of credit cards in Thailand is limited.

Circumstances on the store side:

• High transaction fees (roughly 2-3%) put pressure on profits

• Initial investment such as dedicated terminals and internet connections is required

• It takes several days to a week for sales to be deposited
  
  

Circumstances on the user side:

• Strict card screening and an insufficiently developed credit score system

• Psychological resistance to debt

• Concerns about information leaks and fraud damage
  
  

In this way, a triple hardship of cost, credit, and peace of mindseems to be hindering the penetration of credit cards in Thailand.

📱 Reasons why QR payment became mainstream

Amidst this, the national standard “PromptPay” emerged, led by the Bank of Thailand. This became a turning point that accelerated Thailand's shift to a cashless society all at once.

🔹 What is PromptPay?

• Linked to mobile phone numbers or national IDs and bank accounts

• Fees are almost zero

• Payments are reflected instantly and available 24/7, 365 days a year

• Integrated into all banking apps and standardized for the entire nation
  

In other words, PromptPay was developed as a piece of financial 'public infrastructure' that anyone can easily use.

🏛️ Background 1: State-led digital economy strategy

In 2016, the Thai government launched a national project called 'Thailand 4.0' to promote the sophistication of its industrial structure and economy.

• Standardization of QR code payments (PromptPay)
  

• Introduction of digital IDs and smart citizen cards
  

• Providing financial access to rural areas
  

• Support measures for small and medium-sized stores and street vendors
  
  As a result, the wave of cashless payments has spread not only to urban areas but even to street stalls in rural regions.

💼 Background 2: An evolutionary model that 'warped' from a cash society

While Japan and Europe went through three stages—'cash to credit card to QR'—Thailand skipped a step, moving directly from 'cash to QR.'
This is due to the following circumstances:

• Credit card penetration was originally low
  

• There are many people in the middle class and below, and a credit-based society was underdeveloped
  

• Widespread adoption of smartphones (especially low-cost Android devices)
  

• An economic structure dominated by small-scale businesses and family-run operations
  

In Thailand, perhaps there was neither the time nor the cost to cultivate a credit-based society.

📊 Background 3: The “peace of mind” and household budget management provided by instant payments

For Thailand's middle class and younger generation, managing daily expenses is extremely important.

• Payments are completed on the spot, and the amount spent is immediately visualized
  

• Unauthorized use can be detected immediately
  

• Easy integration with household account apps
  

• Small transfers between family and friends are also easy
  
  

To meet these needs, QR payments seem to have been accepted as the “optimal solution” that balances functionality and peace of mind.

🔐 Background 4: The “bank account opening barrier” that blocks foreigners

On the other hand, for travelers and foreign residents, there is the reality that “even if I want to use PromptPay, I can't.” This is because a Thai bank account is essential for its use, and opening one is a process with a very high hurdle.

• Requirement to present a long-term stay visa or work permit
  

• Linguistic interaction with staff and Thai-language documents
  

• Local rules that differ by bank and branch
  

These procedures symbolize institutional inefficiency and bureaucracy, highlighting the disparity between those on the “inside” and “outside” of the system.

🧭 Reflections on this theme

While Thailand is a highly advanced QR payment society, it holds a structure where only those "within the system" can enjoy its benefits.

Even with convenient and sophisticated technology, considering "who it is designed for" reveals a completely different landscape.
Thailand's payment culture is a site where economic evolution, social hierarchy, systems, and daily life intersect, and it serves as a valuable mirror for re-examining what "cashless" really means.

🏷️

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