Public Pushback Forces Rethink of ATM Fees in Thailand
May 11, 2023
The Thai banking industry has been obliged to reconsider its approach to cash access following a public backlash against plans to introduce new ATM charges.
Following steers from the Bank of Thailand to promote cashless payments, Krungthai Bank (KTB) was the first to announce fees for cardless ATM withdrawals. A wave of complaints that became especially intense across social media prompted them to cancel the plan just a day later.
Bangkok Post cites an anonymous source within the banking industry saying other major banks had been planning to introduce fees, but have frozen their plans following the adverse reaction to KTB’s announcement. Arthid Nanthawithaya of Siam Commercial Bank holding company SCB X says banks will likely await guidance from the central bank.
There are still a lot of complaints about a fee for cash transactions. This suggests a strong conviction among consumers. As a result, banks will review the issue and not take any immediate action.
For now, Thailand continues to see high levels of cash use. The 2023 FIS Global Payments Report shows banknotes and coins are by far the most-used payment method, accounting for 56 percent of transactions. The next most popular option is digital wallets, used for 23 percent of transactions, and credit cards, used for 11 percent.
Given the successful outcome of protests against the introduction of new ATM fees, there is hope that—with further efforts from Thai citizens to make it clear they value the option to use cash—the central bank may reconsider its cashless stance and bolster support for cash and payment choice.