National ePayment Strategy Presented by Ms. Saowanee Suwannacheep Assistant Governor, Bank of Thaila

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National e-Payment Strategy Presented
by Ms. Saowanee Suwannacheep Assistant
Governor, Bank of ThailandConference on
Electronic Commerce Strategies for Development

November 21, 2002
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Topics Covered

• Existing e-Payment in Thailand
• Current Problems and Barriers
• BOTs Actions to cope with Problems
• Key Success Factors

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I. Existing e-Payment in Thailand
Core e-payment Systems BAHTNET, Media Clearing
Other Payment Products ORFT, Trade Hub, B2B
e-Pay, Internet Banking, Telephone Banking,
Mobile Banking
Customers
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Bank of Thailand Payment Services
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Bank of Thailand Payment Services
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II. Current Problems and Barriers

• 1. Inconvenience access to new technologies and
  the internet
• 2. Payment systems provided by BOT ( BAHTNET,
  Media Clearing) are yet to be linked to cross
  border.
• 3. Lack of open network structure in inter-bank
  connections (except BAHTNET, Media Clearing)
• 4. The usage of modern security infrastructure
  and technology is not widespread.
• 5. Public lack of profound technology know how
  and can not afford to employ such technology.

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Limitation of making inter-bank transactions
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III. BOTs Actions to Cope with the Problems
1. Joining regional and international initiatives
on payment issues - APEC, EMEAP, SEACEN,
BIS 2. Restructuring IT systems and Data Linkage
between BOT and FI -BOTs IT strategy, FI
DMS, Inter-bank Payment Systems Development
toward E-FITS
4. Charting the payment strategic directions for
2002-2004 (Payment 2004 Project) as a road map
for safe, sound, and efficient payment systems in
Thailand which will greatly support e-payment.
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PAYMENT 2004

Implementation Plan

AGENDA 1 Industry Payment Body
AGENDA 3 Payment Legislation
AGENDA 2 National Payment Data
AGENDA 4 Infrastructure and Standards
AGENDA 5 Cross Border Connection
http//www.bot.or.th
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Agenda 1 Industry Payment Body
Recommendation
Strategic Directions

• Establish Thailand Payments Association in
  consultation with the market

• Key driver is the need for co-operation and
  co-ordination in the payment market

Lead Institution

• Thai Bankers Association
• Related institutions BOT, FBA, CAT, private
  companies

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Industry Payment Body

• I. Regulatory Issue
• Set rules, procedures and standards on payment
  issues to ensure efficiency, safety and fair
  competition in payment systems.

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Collaboration of BOT Industry Payment Body
Industry Payment Body Scope Micro Level
BOT Scope Macro Level

• Facilitate the setting up
• and operating of new
• payment systems,
• method and technologies
• under BOTs direction.

Payment Policy
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Agenda 2 National Payment Data
Recommendation
Strategic Directions

• Conduct an annual survey of national payment data
  led by the central bank in close co-operation
  with industry

• Key driver is the market need for payment data to
  support decision-making and policy-making
• Assessment of current payment market in Thailand
• Compile and maintain industry payment statistics
• Support central bank policy making in payment
  systems
• Forecast future payment trends

Lead Institution

• Bank of Thailand
• Related institutions TBA, FBA, CAT, private
  companies

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Agenda 3 Payment Legislation
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Agenda 4 Infrastructure and Standards
Recommendations
Strategic Directions

• Develop a common payment platform based on
  interoperable standards

• Key driver is the need to develop a common
  payment platform based on interoperable standards
  to reduce duplicative payment infrastructure
  investments and to support the growth of
  e-commerce
• Develop a complete Straight Through Processing
  (STP) in payment circle

Lead Institution

• NECTEC
• Related institutions BOT, TBA, FBA, private
  companies

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Inter-bank Transaction Conceptual Model
Payment Provider
Central Bank
Bank
ITMX
Consumer
Gateway
Bank Host
Merchant Host
Corporate
B2B2C2G
Media Clearing
Gateway
ITMX
Mobile
Taxpayer
Inter-bank Transaction Management Exchange
Gateway
Inter-bank Settlement
EBPP
Govt Agency
BAHTNET
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• CLS
• ASEAN Regional Payment Gateway Initiative

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New Service for Foreign Exchange Market
Eligible Currencies
2003 SGD, SEK, NOK, DKK 2004 HKD, ZAR,
KRW
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ASEANPay Vision

• To provide a Regional Payment Gateway for
• efficient, secure cost-effective
• clearing settlement of
• all cross-border payments in ASEAN

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IV. Key Success Factors

• Recognition of each stakeholders new roles
• Utmost collaboration among key stakeholders
• - BOT and Industry Payment Body
• - Banks and Non-banks under the umbrella
  of
• Industry Payment Body (Turn
  competition into collaboration)
• BOTs leading roles in promoting, supporting
• and facilitating in any aspects deemed
  appropriate
• and necessary.

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Q A
Thank You