Digital wallet “super app” to link with bank apps

Digital wallet "super app" to link with bank apps

Digital wallet 'super app' to link with bank apps
Julapun Amornvivat, deputy finance minister, addresses supporters of the modern pocket initiative in October of last year. ( Photo: Somchai Poomlard )

According to Deputy Finance Minister Julapun Amornvivat, the so-called” super software” intended for the 10,000-baht digital wallet plan may work in tune with existing wireless applications for businesses on customers ‘ phones.

The app, he explained, was developed in collaboration with the Ministry of Digital Economy and Society ( DES ) and the Digital Government Development Agency ( DGA ) for use in any digital-based policies. It will use an open-loop option, which allows budget users to make purchases at various stores for the sake of wider availability with easy-to-use guidelines.

According to Mr. Julapun, anyone who wants to get the budget handout is not required to open a bank account with a state-owned financial institution in order to receive the money. The” Tang Rat” game, created by the Interior Ministry and the DGA, is already in use by those who have a disability or pension to check on the payments made, according to Mr. Junlapun. On April 10, the most recent information of the 500-billion-baht electric pocket flyer policy were revealed. It is scheduled to be released in the third quarter.

Mr Julapun said earlier that the program’s income may remain obtained from three options: 152. 7 billion ringgit from the funds for the 2025 governmental year; 175 billion ringgit from the budget’s redistribution for the upcoming fiscal year; and 172. 3 billion baht in the form of a loan from the Bank for Agriculture and Agricultural Cooperatives ( BAAC ).

A product of this size, according to Saknarong Siriporn Na Ratchasima, a former BAAC expert and deputy secretary of the Thai Sang Thai Party, may cause the bank to lose both its inner resources and its ability to generate revenue.

He claimed that the BAAC may need to find a way to pay the financial burden of that continuous debt, including the 230 billion ringgit in losses caused by a rice-pledging program under the previous Yingluck Shinawatra administration.

Last year, the BAAC’s cash remained satisfactory, with enough money in its coffers to support its procedures. The bank claimed that its liquidity risk management complied with the requirements set by the Bank of Thailand ( BoT) ).

With a cash cover ratio of 15, the bank had 287 billion baht of solid assets backing cash. 7 %, which is higher than the required 8 percentage. 50 % stated by the BoT.

If the BAAC were to issue this sizable digital wallet mortgage while the old debts from the rice-pledging structure remained unresolved, its problems may burst and eventually stifle the company’s ability to assist producers, which is what the BAAC is supposed to do, according to Mr. Saknarong.