News Column

KBank launches 'Paywave Sticker' credit card innovation, targeting 200,000 cardholders in 2014

June 6, 2014



ENP Newswire - 06 June 2014

Release date- 04062014 - KASIKORNBANK has introduced a credit card innovation 'Paywave sticker' which allows quick transactions with no signature required.

Given the card's responsiveness to the changing lifestyles of the younger generations, the Bank expects to sign up 200,000 cardholders and will incorporate the functionality of a travel card by 2015.

Mr. Chatchai Payuhanaveechai, Executive Vice President of KASIKORNBANK, revealed that financial transactions made via electronic channels have been on a steady rise. This trend is more obvious with 'micropayment' involving a small sum of money. It is poised for growth as consumers are increasingly developing a habit of doing things impulsively while more and more younger people are refraining from carrying cash.

KBank - as a leader in digital banking; with the highest number of VISA payWave credit cardholders - has prepared to introduce the K-Wave NFC Sticker Credit Card, a further development of the K-Wave credit card series using near field communication (NFC) technology. This novel credit card, the first of its kind in the kingdom, is a sticker card, allowing cardholders to decrease the amount of money they carry. By sticking it on mobile phones or other portable devices, and simply tapping on the payment terminal at any stores accepting VISA payWave worldwide, a transaction is completed with no cardholder signature required.

Safety-wise, holders of the K-Wave NFC Sticker Credit Card can set up their own credit limits, with the minimum amount of 5,000 Baht. Each payment must not exceed 1,500 Baht if made without a corroborative signature. Meanwhile, accidental payments are extremely unlikely as payments are unsuccessful unless the cardholder taps the sticker within a distance of 10 centimeters from the payment terminal. As well as that, this card - with an implanted EMV chip which prevents card skimming - is certified by VISA safety standard. K-Wave NFC Sticker Credit Card applicants will be exempt from application fee and annual fee for the first year and will also be able to enjoy a collection of reward points.

The Bank has a target issuance of 200,000 K-Wave NFC Sticker Credit Cards and K-Wave Credit Cards, with total spending projected at 2.7 billion Baht for 2014. By the end of this year, the number of stores accepting NFC credit card series is expected to increase to 10,000 nationwide from over 5,000 stores at present; and by the end of June, the Bank estimates that KBank payment accepting machines would be installed at some 3,500 retail outlets. Attention will be paid to businesses where most transactions are made in micropayments. The Bank has also come up with plans to combine an additional functionality as a travel card into the K-Wave NFC Sticker Credit Cards, allowing cardholders to use the card for their daily transportation payments, such as to pay for express way tolls and trips made on the BTS and MRT. This rather innovative facility is planned to be implemented by the end of 2015.

Mr. Chatchai added that development of the K-Wave NFC Sticker Credit Card has proved to be the Bank's number one position in the digital banking market. With this innovative service to accommodate rapid growth of micropayments, both cardholders and accepting retail outlets enjoy a simplified payment experience. Our new service is especially advantageous to businesses providing products and services that require faster transactions and involve only a small amount of money, e.g., restaurants, bars, cafe, minimarts and cinemas. Our K-Wave Credit Card innovation also supports government's policy. It helps curtail the public need for cash, reducing the Bank of Thailand's burden to produce banknotes and at the same time saving people from crimes instigated by carrying large amounts of cash.

At present, the number of credit cards incorporating NFC technology in Thailand, either issued by commercial banks or other corporations, stands at around 100,000. KBank alone has already issued 80,000 K-Wave Credit Cards. By the end of this year, the number of NFC cards is expected to increase to around 300,000.

Looking at an outlook for credit card loans, the NPL as of the end of 1Q14 made up 2.72 percent of total credit; whereas KBank's credit card NPL during the same period stood at 1.72 percent, which was lower than that of the market. At 2014 yearend, the Bank intends to issue another 715,000 credit cards, with a total customer base of 3.6 million, rising by 16 percent from the end of 2013. Total card spending is projected at 344 billion Baht, representing a 31-percent growth. An estimate for adjusted outstanding loans at the end of this year is 72 billion Baht, swelling within a band of 11-12 percent.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters