Unpacking the instalment trend

For companies such as Lazada, Temu and Shopee, declining sales pose an even greater threat, forcing them to expand their market share by all possible means — through giveaways, discounts, and a wide range of incentives to defend their positions, he said.

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MORE OPTIONS

In Thailand, many restaurants accept a wide range of digital payments through electronic data capture machines, allowing customers to pay via credit and debit cards, QR PromptPay, or bank-issued QR codes. These transactions are subject to processing fees set by banks.

In recent years, payment options have expanded to include e-wallets such as ShopeePay, with some restaurants joining the SPayLater programme, which lets customers pay for meals in instalments. Participating chains include Shinkanzen Sushi, Suki Teenoi and Ohkajhu.

Thaniwan Kulmongkol, president of the Thai Restaurant Association, said the economic slowdown reduced people’s spending money. While many restaurants already accept credit cards, BNPL services give customers added flexibility, allowing them to manage higher meal costs during tough financial times.

Nattamon Pisankitvanich, managing director of BNN Restaurant Group, said most of her customers prefer Prompt-Pay QR code payment, though Shopee-Pay is also available.

She said BNPL is simply another payment method for customers.

Ms Nattamon recalled one customer who said he could have paid the full bill, but chose an instalment plan instead, accepting the small interest charge.

“Because the interest was only a few baht, the customer felt paying in instalments was a practical choice,’ she said.

INDUSTRY PERSPECTIVES

According to Supphavit Hongamornsin, country head at Monee Thailand, operator of the SPayLater service under Sea Thailand (formerly SeaMoney Thailand), BNPL adoption has grown steadily, especially among younger people just entering the workforce.

The flexible payment model is increasingly popular for both consumer goods and services, he said.