Mr. Pattanapong Tansomboon, First Senior Vice President of KBank, said Lao PDR has exhibited continually high economic growth, but access to financial services has remained difficult. Only 26 percent of Lao population has bank accounts, due to a limited number of bank branches and ATMs, and complicated account opening processes. However, more than 91 percent of Laotians use mobile phones and 90 percent of the total get access to the internet via their mobile phones.
By leveraging the digital banking leadership in Thailand, KBank aims at capitalizing on digital service provision in Lao PDR. The "QR KBank" has been developed as an e-wallet application to offer greater convenience to Lao customers. Even without a bank account, the app can be used for mobile top-up and funds transfer, as well as QR Code payment. With this smart wallet in their mobile phones, customers no longer need to carry a large amount of cash.
In addition, KBank has launched "QR KBank Shop" application designed for small merchants. The application allows users to accept payment via the QR KBank function with enhanced security, reduced cost and minimized risk from cash management with no cash exchange. The application also provides daily sales summary which allows for increased efficiency in business planning.
In collaboration with Nong Chan Market or "Talat Khua Din", KBank will debut the QR KBank – an e-wallet service on December 11, 2018 with the launch of "Convenient for Seller, Easy for Buyer: Pay with QR KBank" campaign. The first of its kind in Lao PDR, the application will make Nong Chan Market the prototype of cashless market. By 2019, transactions via QR KBank are expected to reach some 2 million, or more than LAK36 billion or approx. THB115 million.
Mr. Visith SENGDARA, Chief Executive Officer, LIENG HENG COMMERCIAL MANAGEMENT CO.,LTD, which manages the Nong Chan Market, added that the Nong Chan Market is considered as an important trading center in Vientiane. It has constantly been ungraded as a modern market over the years and is now a popular shopping venue for both Vientiane residents and those from other provinces, including restaurant, hotel, retail and wholesale business owners. The market has become a famous attraction among international tourists. Boasting over 700 stores, the Nong Chan Market attracts over 2,000 shoppers/day and the amount of their spending here totals over LAK3 billion /month. The introduction of QR KBank and QR KBank Shop at the market will offer convenience for both merchants and customers in terms of greater flexibility and security.
KBank is planning to use QR KBank and QR KBank Shop to upgrade the payment system via digital channels of business partners in early 2019, while also looking at the feasibility of introducing new service features on QR KBank to meet the needs of Laotians, including mobile phone top-up, together with expanding payment points and funds transfer channels, aimed at offering convenience to customers.
In addition to the above-mentioned services, KBank in Lao PDR offers saving, loan and trade finance products to retail and corporate customers by focusing on Thai and local customers (Lao PDR) with robust business performance and steady growth.
The launch of QR KBank in Lao PDR marks the first and remarkable step of Thai banks in introducing technology to upgrade and expand the scope of banking services in the AEC+3 in tune with the needs of customers in the digital age through mobile platform. In the future, KBank plans to apply the knowledge learned from QR KBank in Lao PDR, which is regarded as KBank business model for other CLMVI countries, to add value to mobile banking service, thus reaffirming its leading position in the AEC+3 by being the true digital banking pioneer in the region.