The government's plan to completely install 560,000 credit and debit card-swiping terminals by the first quarter of next year could be delayed, says a senior Bank of Thailand official.
If the full installation of electronic data capture (EDC) terminals cannot be done as scheduled, it might lag on the government's efforts to make Thailand less reliant on cash and facilitate the country's digital economy transition.
"The Bank of Thailand has already asked two banking consortiums to come up with an adjusted plan to help install all 560,000 EDC devices as scheduled," said Siritida Panomwon Na Ayudhya, assistant governor of the central bank's payment systems policy and financial technology group.
One consortium comprises Bangkok Bank and Kasikornbank, while another -- Thai Alliance Payment System -- consists of five banks: Siam Commercial Bank, Krungthai Bank, Bank of Ayudhya, Thanachart Bank and TMB Bank.
Thus far, only a small number of EDC terminals have been installed. EDC terminal expansion is a part of the national e-payment scheme.
Around 140,000 or 25% of the total were scheduled to be installed by the end of April, but only 65,000 were put in place.
"The installation delays may partially be explained by the fact that the scheme is not yet well-known among merchants," said Ms Siritida.
"We have talked with the two consortiums about changing their plans by marketing more and raising awareness, while the government will also help," she said.
According to the Bank of Thailand's plan, 50% of the 560,000 machines should be installed by the end of July, 75% by November and the rest by the end of March next year, said Mrs Siritida.
The Finance Ministry recently said some merchants might be wary of installing EDC terminals because it could add onto their tax burdens, as all transactions will be fed through the Revenue Department, which should allow it to know if businesses are understating their tax payments.
Meanwhile, Mathee Supapongse, deputy governor overseeing monetary stability at the central bank, said the narrowing interest rate gap between Thailand and the US will not necessarily trigger capital outflows as it is not the only factor considered by foreign investors.
"The effect of the interest rate gap on capital flows is hard to predict as investors also consider other risk factors when moving their capital between markets," he said. "The theory that the increase in the Fed's policy rate will trigger capital outflows might not fully apply to the current situation."
