Siam Commercial Bank (SCB) is offering credit card-based QR code payment at local noodle franchise shop Chysee Mee Kiew, providing a credit line of up to 45 days -- unusual among most QR code e-payments, which draw from savings accounts.
The bank launched the service at 378 Chysee Mee Kiew shops, mostly in Bangkok and surrounding areas. It expects to expand QR code payments to 2,000 noodle franchises during the first half of this year, out of 4,300 shops total, said Pimjai Tongmee, executive vice-president for sales and delivery.
The bank expects its digital payment service will cover 10% of total transactions at the noodle shops, although it will take time for customers to change their spending behaviour, she said.
SCB, the country's second largest lender by total assets and No.2 in digital banking, aims to expand the number of merchants receiving QR code payment to 2 million by the end of the year, with 100,000 which offering credit card e-payments.
The bank has launched the service at 378 Chysee Mee Kiew shops.
Last year, SCB had 1.3 million merchants offering QR code payments, of which 18,000 receive QR code credit cards.
The bank does 2 million monthly transactions a month worth 2 billion baht. It aims to grow total volume to 6 million transactions per month worth 6 billion baht by the end of the year.
This year, SCB plans to primarily expand QR code payments to businesses conducting lower-value transactions in the food and beverage category.
"We aim to expand to 30 franchise brands this year from one brand now, and focus on the street food segment with small ticket sizes beginning from 30-40 baht per transaction," Ms Pimjai said.
Thailand's street food business had a total market value of 20 billion baht in 2017 and is expected to grow to 340 billion baht by 2020. Chysee Mee Kiew represents a 20% market share in terms of street food franchise businesses. It plans to expand the business into regional markets including Cambodia, Laos, and Myanmar this year.
SCB also provides total digital payment solutions to Chysee Mee Kiew, covering the company's total supply chain including franchisees. The bank hopes to increase mobile banking users to 12 million by the end of the year.