Thai banks to waive digital transaction fees amidst heated e-wallet competition

However, the move is estimated to slash profits by up to 5%.

Reuters reports that Thailand’s four largest banks are opting to waive digital transaction fees in an effort to rein in customers turning to alternative methods of money transfer.

Bangkok Bank, Kasikorn Bank, Siam Commercial Bank (SCB), and Krungthai Bank said that they would drop charges by April 2018 for digital transactions with other banks, money transfers across banking zones, bill payments, and cash withdrawals.

This comes as consumers are increasingly turning to a slew of digital alternatives including government-backed PromptPay, TrueMoney offered by telco firm True Corporation Pcl, and startup Omise for their money transfer needs.

Also read: Thailand's digital banking shift to boost banks' revenue

“We aim to respond to our customers’ needs,” said SCB’s first senior vice president, digital banking division, Tana Pothikamjorn.

However, the move is projected to slash profits by as much as 5% and hurt the market value of banks in the process.

Here’s more from Reuters.