THAILAND TRENDS AND DEVELOPMENTS Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamada
has further lowered barriers to adoption across demo - graphic groups. Consumer behaviour has shifted accordingly. Con - venience, transaction transparency and budgeting features embedded in digital platforms have encour - aged households and merchants to embrace elec - tronic payments at scale. The COVID-19 pandemic and social media acceler - ated this transition by reinforcing demand for contact - less payment methods. The period witnessed sharp growth in the use of e-wallets, QR payments and online banking services, many of which have remained part of daily life even after mobility restrictions were lifted. E-commerce has been a major beneficiary of these developments. The availability of diverse digital pay - ment options, including “buy now, pay later” services and mobile wallets, has expanded the potential cus - tomer base for online merchants. Improvements in logistics and delivery networks have complemented these financial innovations, allowing e-commerce platforms to offer faster and more reli - able fulfilment. Together, these trends have reshaped consumption patterns and reinforced fintech’s role in the broader digital economy. Central Bank Digital Currency and the Digital Thai Baht The Bank of Thailand’s exploration of a Digital Thai Baht has been among the most closely watched fin - tech developments in recent years. Both wholesale and retail central bank digital currency models have been studied as potential enhancements to Thailand’s economic and payment infrastructure. Retail central bank digital currency (CBDC) experi - mentation culminated in pilot initiatives such as Project Bang Khun Phrom, which tested core func - tionalities without disrupting financial stability. These trials examined top-ups, withdrawals, transfers and merchant payments, as well as programmable fea - tures such as conditional payments and escrow-type arrangements.
The pilot programme also demonstrated that CBDC systems could function as open infrastructure acces - sible to both banks and non-bank financial service providers. Such inclusivity could, in theory, promote competition and innovation across the sector. At the same time, the experiments revealed impor - tant caveats. Retail CBDC provided user experiences similar to existing electronic payment methods, rais - ing questions about what additional value would be required to drive mass adoption. Governance models, legal alignment and inter-agency co-ordination were also identified as critical prerequi - sites for any broader rollout. Fee structures for non- bank participants and the resilience of offline payment capabilities remained areas requiring further refine - ment. Even with these unresolved questions, the Digital Thai Baht initiative underscores Thailand’s willing - ness to explore sovereign digital money proactively. The insights gained from pilot programmes are likely to inform future payment infrastructure projects and broader digital finance policy. Virtual Banks and the Transformation of Financial Intermediation Thailand’s decision to introduce virtual banks marks another structural shift in the financial sector. Led by the Bank of Thailand, the initiative aims to promote financial inclusion, stimulate competition and improve access to credit for underserved groups. Virtual banks are expected to target unbanked and underbanked populations, as well as small and medi - um-sized enterprises that have historically faced diffi - culties obtaining financing from traditional institutions. Digital-first operating models are viewed as a way to lower costs and tailor products to these segments. The licensing framework emerged from consultations beginning in 2022, with application windows opening in 2024. In mid-2025, the Ministry of Finance approved several consortia to proceed with establishing virtu - al banking operations, subject to incorporation and readiness assessments.
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