Thanachart Bank (TBank) announced on Wednesday that the bank will waive installation charges and lower fees for small merchants that provide electronic data capture terminals.
The bank’s decision to lower fees and waive installation fees is an effort to promote EDC terminals and lure in more customers.
TBank’s small and medium-sized enterprise package includes the installation charge exemption and lower fees. The package includes a variety of services to qualifying businesses for loans, insurance, deposits and transactional banking.
Installation of EDC systems can cost several thousands of baht, which puts a strain on smaller merchants that want to offer terminals to their customers. Fee ranges are between 1.5% and 2% of the total transaction cost.
The bank is mulling over the idea of adjusting its internal definition of a small merchant. Small merchants are defined as merchants that have annual sales of up to 600 million baht. The new definition would lower this figure down to 20 million baht.
Banks have provided 300,000 EDC terminals across the country. A plan by the government’s e-payment scheme will install an additional 500,000 EDC systems in the first phase alone. Small merchants are a key factor to the adaptation of the new e-payment system, according to analysts.
The government aims to transition Thailand from a cash-based country to a card-based country.
TBank is the sixth largest lender in Thailand and currently maintains 2% market share of EDC terminals for debit cards. The bank’s goal is to maintain 5% market share of EDC systems in the country by the end of the year.