PromptPay and TrueMoney are two popular digital payment platforms in Thailand. While both services aim to facilitate digital transactions and support cashless payments, they are distinct in terms of functionality, underlying systems, and usage scenarios. Here’s a breakdown of their differences and similarities:
1. Overview of Each Platform
PromptPay
PromptPay, introduced by the Thai government as part of its national e-payment system in 2017, is a real-time payment platform developed by the Bank of Thailand. It’s designed to encourage cashless transactions and streamline government disbursements, such as subsidies and tax refunds. PromptPay enables instant bank transfers using a recipient’s phone number, national ID, or a specific PromptPay ID linked to a bank account, making transactions easy without needing to know the recipient’s bank details.
TrueMoney
TrueMoney, a private sector e-wallet service from Ascend Group, launched in 2003, has grown into one of Thailand’s most popular e-wallet platforms. While it started as a way to recharge prepaid phone credits for True Corporation customers, TrueMoney evolved into a full-fledged e-wallet, enabling users to pay bills, make purchases, and transfer funds. TrueMoney’s growth has been bolstered by its integration with TrueMove H, one of Thailand’s leading telecom providers, allowing for a strong base of users and merchants that support the platform.
2. Key Functional Differences
Payment and Transfer System
- PromptPay: This is a bank-based transfer system where users can link their bank accounts and transfer funds via a mobile phone number, national ID, or company ID. PromptPay works across multiple banks, making it widely interoperable. Transfers are processed directly between bank accounts, supported by Thailand’s interbank network, which means users need a bank account to use PromptPay.
- TrueMoney: TrueMoney operates primarily as a prepaid e-wallet. Users load funds into their TrueMoney account and then use the e-wallet for transactions. It doesn’t require a traditional bank account to function, allowing unbanked or underbanked users to participate in digital payments. Money can be added to TrueMoney through various methods, including ATMs, cash deposit machines, convenience stores, and TrueMoney agents.
Usage Scenarios
- PromptPay: Typically used for peer-to-peer (P2P) transfers, PromptPay is especially useful for bank-to-bank transfers, paying utility bills, government disbursements, and receiving tax refunds. It’s more popular for personal and small business transactions because of its wide bank integration.
- TrueMoney: TrueMoney is widely used for a broader range of transactions. It is popular for making payments at stores, online shopping, topping up mobile credits, and paying for public services like transportation. TrueMoney also has extensive ties with online gaming and digital content services, making it popular for younger audiences or those who prefer a prepaid model.
Government Support and Financial Integration
- PromptPay: As a government-backed initiative, PromptPay integrates with various public sector services. It’s the primary channel for government benefits, refunds, and subsidies, making it the preferred choice for individuals receiving government payments.
- TrueMoney: Although TrueMoney is not a government initiative, it partners with private businesses, retail chains, and local services, providing flexibility for consumer and retail payments. It’s more focused on private transactions rather than public sector use.
3. Technical Architecture and Security
System Security
- PromptPay: Being a government-backed platform operated by the Bank of Thailand, PromptPay adheres to stringent banking regulations and security standards. Transactions are conducted directly between banks over the National Interbank Transaction Management and Exchange (ITMX) network, providing a high level of security and reliability. Moreover, PromptPay transactions are traceable, and users are subject to the security policies of their individual banks, including two-factor authentication.
- TrueMoney: TrueMoney’s security protocols are also strong, with compliance with local and international standards. However, since it’s an e-wallet, it operates differently than a bank system, focusing on mobile security and encryption. Users access their e-wallets via a PIN or biometric login, and the system includes fraud detection and account protection features, but it operates on a separate layer from banks.
Transaction Speed
- PromptPay: Given its real-time transfer infrastructure across banks, PromptPay allows for almost instantaneous transactions. This is particularly useful for time-sensitive payments, where immediate funds are essential.
- TrueMoney: Transactions on TrueMoney are generally quick but may depend on the type of payment or transfer and can sometimes have a slight delay, especially if the transaction involves third-party services or international transfers.
4. Fee Structures and Costs
- PromptPay: Most transactions on PromptPay are free, especially for lower-value transfers (typically below 5,000 THB). Bank fees may apply for higher amounts or specific types of interbank transactions. However, for most consumers, PromptPay is a cost-effective way to transfer money due to these reduced fees.
- TrueMoney: While many services on TrueMoney are free, especially domestic transactions, some fees apply for certain types of top-ups, bill payments, or transactions with third-party platforms. TrueMoney users are often subject to fees when cashing out or transferring to bank accounts, though promotions and loyalty programs can offset these fees.
5. User Accessibility and Interface
Registration and Access
- PromptPay: To register for PromptPay, users need a Thai bank account. They then link their bank account to their mobile number, national ID, or company tax ID. Once set up, users access PromptPay via their bank’s app or ATM network. While it’s convenient for banked users, those without bank accounts cannot access PromptPay.
- TrueMoney: TrueMoney has a lower entry barrier, as it does not require a bank account. Users simply need to download the TrueMoney app and load funds via TrueMoney kiosks, ATMs, convenience stores, or by linking a bank account if available. This inclusivity makes it popular among younger users, tourists, and individuals without access to traditional banking services.
User Experience
- PromptPay: Since PromptPay is integrated into various banking apps, the user experience can vary based on the bank. However, PromptPay is generally straightforward, with quick transfer options, balance inquiries, and transaction histories accessible through banking apps or ATMs.
- TrueMoney: TrueMoney’s dedicated app offers a wide range of services, with a user-friendly interface that’s optimized for a younger demographic. The app integrates shopping, entertainment, and service payments, creating a mini-ecosystem of accessible features within a single interface.
6. Market Reach and Popularity
- PromptPay: PromptPay’s integration with banks across Thailand gives it a significant reach. It is used widely for government payments and by individuals and businesses who need a reliable, cost-effective way to transfer money. It’s especially popular among those who prefer bank transactions or who are eligible for government subsidies.
- TrueMoney: TrueMoney has established a strong presence not only in Thailand but also in other Southeast Asian countries. Its popularity is fueled by its accessibility and its alignment with the True Corporation brand. It’s widely accepted across retail stores, online shopping platforms, and even smaller vendors, making it popular for daily expenditures and entertainment-related transactions.
7. International and Cross-Border Compatibility
- PromptPay: Primarily designed for domestic use, PromptPay’s cross-border capabilities are limited. However, Thailand has been working with neighboring countries like Singapore and Malaysia to establish cross-border payment systems compatible with PromptPay, enhancing future potential.
- TrueMoney: TrueMoney offers more cross-border functionality, especially within Southeast Asia, where TrueMoney has established partnerships and regional services. It enables users to make payments or transfers in neighboring countries like Cambodia, Myanmar, and Vietnam, making it a more versatile option for cross-border activities.
8. Advantages and Limitations
Advantages
- PromptPay:
- Government-backed and regulated, providing a sense of security and legitimacy.
- Instant, free or low-cost bank transfers.
- Ideal for P2P transfers and government-related payments.
- TrueMoney:
- No bank account is required, making it accessible to a broader demographic.
- Versatile use in retail, online, and cross-border payments.
- User-friendly app and wide merchant acceptance, especially in entertainment and retail.
Limitations
- PromptPay:
- Requires a bank account, which can be limiting for unbanked populations.
- Primarily focused on domestic payments, with limited cross-border options.
- TrueMoney:
- Fees may apply for certain transactions, like cashing out.
- May not be suitable for larger transactions or those requiring bank-level security.
Conclusion
PromptPay and TrueMoney serve overlapping but distinct needs in Thailand’s payment ecosystem. PromptPay is ideal for users looking for a cost-effective, government-backed option primarily for bank-to-bank transfers, government subsidies, and other regulated payments. TrueMoney, on the other hand, excels as a flexible, prepaid e-wallet that caters to daily expenditures, entertainment, and even cross-border payments. The choice between these two platforms depends on the user’s needs: PromptPay for bank-linked transactions and public sector integration, and TrueMoney for flexibility, unbanked accessibility, and a broader range of digital payment options.
