Home International News E-commerce emerges as mainstream payment in Thailand amid COVID-19 crisis, finds GlobalData

E-commerce emerges as mainstream payment in Thailand amid COVID-19 crisis, finds GlobalData

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E-commerce has been on a sustained growth for the last few years in Thailand. While Thailand is among the few countries globally that has been successful in combating , the lockdown measures such as restricting the opening of businesses and retail stores have fast-tracked e-commerce growth, according to , a leading data and analytics company.

An analysis of GlobalData’s E-Commerce Analytics reveals that the e-commerce market in Thailand is well-developed, registering a compound annual growth rate (CAGR) of 12.2 percent between 2016 and 2020 to reach THB1.1 trillion in 2020. A large young population, rise in Internet and smartphone penetration, coupled with growing consumer confidence in online payments are attributed to the growth.

The ongoing COVID-19 outbreak is turning online shopping into a new normal in Thailand. The value of e-commerce transactions is expected to grow at 14.8 percent in 2020, the highest since 2017. Fears over contracting COVID-19 and the subsequent social distancing measures taken by government are expected to contribute to the uptick in online shopping.

, Lead Banking and Payments Analyst at GlobalData, comments: “The COVID-19 pandemic had a major impact on the Thailand economy. While it has resulted in a decline in consumer spending, on other hand, it has paved the way for e-commerce growth sharply. Thai consumers’ familiarity and comfort in using digital payments enabled a smooth shift from offline to online channel.”

The pandemic has also resulted in a rise in the adoption of e-commerce by retailers. E-commerce company , which hosts roughly 200,000 merchants on its platform, added 26,000 new merchants in March 2020 alone. To promote e-commerce, Thailand is taking steps to bring offline local merchants to the online channel. In May 2020, Thailand’s Commerce Ministry collaborated with online platforms including , Lazada, and to enable farmers to sell fruit online.

Sharma concludes: “COVID-19 has forced consumers to shop online like never before. In fact, during the pandemic online shopping was no longer alternative channel, but a means of survival. Meanwhile, the benefits associated with online shopping such as easy and convenience will position e-commerce as a preferred mode for purchases in the future.”