BANGKOK – Thailand’s tourism industry has outperformed expectations thanks to digital payments, bringing in more than 1.7 trillion baht over the past year. It is a clear rebound from the pandemic slump, powered mainly by international visitors.
Tourism now makes up close to 9% of Thailand’s GDP, keeping it one of the country’s strongest economic drivers.
Behind the big revenue figure is another major shift. Travellers are moving away from cash, and card spending by foreign visitors has reached a new high of 327 billion baht. That change is reshaping daily travel habits across the country, from how people pay for meals to how they buy essentials.
Thailand continues to draw large numbers of visitors from China, Malaysia, India, South Korea, and Russia. Together, these markets make up nearly half of all arrivals. Hotels and other accommodation still take the largest share of spending at 35%, followed by dining at 23%. Where the real lift is happening, though, is in smaller day-to-day purchases that used to be paid in notes and coins.
Small digital payments are fuelling the digital payment boom
A big part of the surge comes from “small-ticket” transactions, purchases under 500 baht that tourists now pay for with cards and mobile apps. These are the quick, routine buys that happen all day, convenience store snacks, supermarket top-ups, street food, and local market items.
Findings from a joint whitepaper by the Bank of Thailand and Visa show that low-value digital payments now make up a meaningful share of overall spend. In key tourist areas like Bangkok and Phuket, transaction volumes have risen above pre-pandemic levels.
South Korean tourists are a good example. More than 37% of their digital transactions fall under 500 baht, often for everyday items such as drinks and snacks. Malaysian and Indian visitors show a similar pattern, using credit cards for routine buys that once would have been cash-only, while reserving larger spending for hotels, tours, and shopping.
Overall, foreign card payments totalled around 100 million separate transactions, representing about 20% of the value of tourist spending.
Several factors are pushing this change. Most travellers carry smartphones and use wallet apps without thinking twice. Payment acceptance has also improved, with QR codes now common in many tourist zones. Dr Somchai Jitsuchon, an economist at the Thailand Development Research Institute, says travellers now expect easy payment options, and the pandemic sped up digital habits worldwide.
Visitor mix plays a part too. Budget-minded millennials and Gen Z travellers, who make up a large share of arrivals across Asia, often focus on experiences rather than high-end extras. They are more likely to pay 200 baht for pad Thai at a roadside stall by scanning a QR code than spend big on a formal dinner. The spend data suggests tourism income is spreading across more businesses, including smaller vendors that can now accept modern payment types.
Thailand is relying less on cash, but gaps still exist
Cash has been the default for years in Thailand, especially for smaller businesses that worried about fees or didn’t want to deal with card terminals. The latest figures show a clear shift. Digital payments now account for around a fifth of tourist transactions, up sharply compared with earlier years.
For travellers, cashless spending can mean fewer trips to exchange counters and fewer ATM runs. It also reduces the risk of carrying large amounts of cash. For the wider economy, digital payments can improve settlement speed and make income flows easier to track. The Bank of Thailand says this change has helped support tourism income during uncertain periods, including exchange-rate swings and geopolitical pressures.
Still, not every area is keeping up. Many street markets and small family shops in provinces such as Chiang Mai or Krabi may not accept cards. Some visitors then have to switch back to cash, which can frustrate travellers who prefer contactless payments after COVID.
PromptPay, the payment system powering everyday spending
PromptPay sits at the centre of Thailand’s payment network. The Bank of Thailand launched it in 2016 as a real-time payment system. It lets people transfer money using simple identifiers such as a mobile number, citizen ID, or tax ID, instead of sharing bank account details.
Users link their bank accounts through their banking apps, which supports person-to-person transfers, bill payments, and merchant QR code payments, usually with low fees. For tourism, PromptPay can work alongside international cards and wallet services, helping visitors pay local businesses without needing to carry much cash.
PromptPay now processes more than 5.3 billion transactions a year. It runs 24/7, completes payments in seconds, and supports transfers of up to 2 million baht. That range covers everything from a 100-baht tuk-tuk fare to paying a hotel bill. As it is regulated by the Bank of Thailand, it also uses security controls such as real-time checks and encryption.
For small tourism businesses, PromptPay has opened doors. A fruit seller at Bangkok’s Chatuchak Market can display a QR code and take payment straight away. That makes it easier for small operators to serve international customers, not just large chains in city centres.
Bank of Thailand and Visa push wider acceptance among SMEs
To keep this progress going, the Bank of Thailand (BoT) and Visa are working to expand digital payment acceptance, with a strong focus on small and medium-sized enterprises (SMEs). SMEs are central to Thai tourism, including guesthouses, souvenir shops, cafés, and food carts. Many still run on cash because setup costs feel high or the technology feels unfamiliar.
One priority is “Mobile Tap to Phone” technology, which allows a smartphone to act as a card reader. Programmes are also being tailored to different business sizes, so smaller operators can start with low-cost tools and simple onboarding. A Visa spokesperson said the goal is to let every type of vendor take part, whether they are a busy shopfront or a single-stall trader.
Government support is also part of the plan, including subsidies for tools and training sessions. Thailand has also introduced the TouristDigiPay sandbox, which supports crypto-to-baht conversions for tourists. With controls such as a 500,000 baht monthly limit for verified vendors, the project aims to test new options while keeping risk in check.
What comes next for cashless tourism in Thailand
Thailand is targeting more than 35 million arrivals in 2026, and the move to digital payments looks set to continue. If card spending keeps rising, it could add billions more to tourism revenue. The next step is closing the gap between major tourist hubs and smaller towns, so visitors can pay the same way wherever they go.
Cybersecurity risks and economic uncertainty still matter, but the direction is clear. Tourism Minister Sorawong Thienthong said the shift towards digital payments is here to stay, and Thailand is not only rebuilding visitor numbers but also updating how tourism works day to day.
For travellers, the change is simple. Paying is quicker, easier, and often contactless. For Thailand, each small tap or scan adds up, helping businesses of all sizes share in the country’s tourism recovery.
