Paytm founder Vijay Shekhar Sharma. Photo credit: Wikipedia.
CAT Telecom has entered a joint venture agreement with two South Korean telecom companies to provide e-payment gateways and e-business services.
Tree Pay Thailand Co — a 50:30:20 venture of CAT Telecom, SK Telecom and NHN KCP, a payment gateway service provider — has a registered capital of 200 million baht.
“The partnership will capitalise on the burgeoning e-payment market and tap into lucrative business opportunities stemming from Thailand 4.0,” said CAT president Sanpachai Huvananda.
“We continue to build a sustainable growth framework,” he said.
Tree Pay plans to increase its registered capital to 300 million baht by September.
“We will provide both e-commerce payment and offline credit card payment gateway services to support the government’s goal of a cashless society,” Col Sanpachai said.
Suvicha Natlita, chief executive of Tree Pay Thailand, said the company will focus on providing digital payment gateways for business-to-business.
He said NHN KCP has a 50% share in South Korea’s digital payment gateway market where the volume of e-payment transactions is 7-8 times higher than in Thailand.
Thailand’s digital payment transaction is expected to be valued at 80 billion baht in 2016.
“Tree Pay expects to grab at least a 20% market share within the next three years,” Mr Suvicha said.
CAT has also collaborated with SK Telecom to build a smart city platform based on the Internet of Things (IoT) to turn Phuket into a smart city under the government’s plan to build Phuket Smart City Innovation Park.
SK Telecom will install and connect IoT systems while CAT will oversee service and operations.
Inhyok Cha, executive vice-president for SK Telecom's IoT business division, said Thailand is an important country for SK Telecom's overseas business, particularly for IoT.
He admitted that SK Telecom had previously been interested in entering the Thai mobile market through an acquisition, but the company has no intention of doing so currently as Thailand's mobile market has already reached maturity.
SK Telecom is now turning to IoT in Thailand's high potential, thanks to the development of the country's digital economy and various digital-driven initiatives.