No more PayPal transactions in Thailand from 7 March.
Originally located in the United States, PayPal is one of the most famous online payment platform providers in the world. It allows users to pay for goods or services online, sending and receiving money safely.
With over 360 million active users in more than 200 countries, Paypal has been registered as a legal entity in Thailand since 2016. Besides, as the e-commerce industry in Southeast Asia, including Thailand is growing quickly, the company got a real opportunity from this market. (read our article)
1 . What is happening with PayPal Thailand?
Starting March 7, Paypal has made an announcement reporting that existing PayPal accounts registered for freelancers, casual sellers, entrepreneurs and landlords in Thailand will have limited functionality, except for making bank withdrawals. Registration of new accounts for freelancers or occasional sellers will not be available until further notice.
Here are the official announcement made by Papypal:
For consumers:
“As of March 7, 2022, consumers in Thailand with an existing PayPal account will no longer be able to use their PayPal wallet to make online purchases and make or receive payments until further notice. They will be able to withdraw any balance from their PayPal wallet to their bank account.”
For contractors, freelancers and vendors:
“Existing PayPal accounts registered for freelancers, occasional sellers and contractors/sole proprietors in Thailand will have limited functionality except for making bank withdrawals.”
2. Why this change?
The company said they are working closely with authorities in Thailand to speed up their recovery and minimize disruptions for customers. In fact, PayPal is confused by Thailand’s moves to reshape its regulatory framework in order to accelerate its financial technology and transform into a digital economy. Meaning that, to operate in Thailand, the platform must conform to Thai law, especially its laws on anti-money laundering and taxation.
“For many months, we have been working diligently to revive PayPal in Thailand. As a locally licensed payment service provider, we have been gradually updating our products and processes to comply with all applicable Thai laws. We were hoping to start welcoming more Thai customers in the next phase of our relaunch in March,” the company explains. “Unfortunately, we need more time to reach this next phase and to further expand our services in Thailand,” the press release from PayPal stated, based on the article from The Bangkok Post.
3. What impact on the market and how to deal with it?
Having limited functionality on the platform for casual sellers and non-registered business entrepreneurs in Thailand will affect businesses in many aspects. Indeed, due to the pandemic, many people have started doing business and transactions online using Paypal for their transactions payments.
Monsinee Nakapanant, co-president of Ascend Money Co, the operator of TrueMoney Wallet, says the suspension of PayPal will mainly have an impact for those who conduct financial transactions with Western markets such as online sellers, freelancers and consumers. However, in Thailand, there are still services from other operators that can be used instead of PayPal.
It will also lead to an opportunity in the market for Thai mobile operators to step in and offer their services to Thai businesses and self-employed individuals who need to receive international payments.
Therefore, if you were using Paypal as a contractor, freelancer, vendor or consumer, you will still have the possibility to withdraw any balance from your PayPal wallet to your bank account. However, for the other services that will be limited on March 7, you can definitely start looking for an alternative online payment platform. For example, PayDollar is a comprehensive debit payment option for the Asia-Pacific region, available in Thailand. Merchants can use it to collect real-time payments from customers via bank accounts, debit cards, e-wallets, and prepaid products.
Sources:
https://www.bangkokpost.com/business/2260371/paypal-suspension-to-hit-thais-amid-tough-market