The bank’s credit card spending in the first half of this year grew by only 6-7 per cent compared to 10 per cent for the same period of last year, according to Shoke Na Ranong, the executive vice president and manager of the credit card division of Bangkok Bank.

The card spending might improve in the second half of the year if the economy improves, he said, perhaps by as much as 10 per cent.

However, even if the second-half card spending expands against the slowing spending from the first half, it could result in full-year growth of between only 8 per cent and 9 per cent, falling short of this year’s target of 12 per cent growth.

Shoke added that economic slowdown is causing the growth rate of credit card spending to be unsteady. Consumers have been more careful of their spending since the beginning of the year, resulting in low first-half growth at 6-7 per cent. The bank is monitoring consumer confidence to see if it rebounds after the new government’s installation.

He said that the bank’s issuance of new credit cards this year was expected to be 200,000 cards, compared to 350,000 card in the previous year.

This suggestion came shortly after the government announced its new Cabinet, which the tobacco giant hopes will consider innovative “smoke-free products” for smokers, who otherwise would continue smoking, in its determination to build a smoke-free society.

Thailand has banned the import, sale and servicing of e-cigarettes since 2014, with violators facing arrest and a jail sentence. Philip Morris’s smoke-free products could also be included in this banned category.

Gerald Margolis, managing director of Philip Morris Thailand, said the company wanted to call on the government to make way for a discussion that is backed by findings about the impact of smoking and encourage policymakers to review scientific evidence indicating that smoke-free products are a safer alternative to cigarettes and could significantly reduce risks once smokers switch completely to e-cigarettes.

“With current developments in technology and science, it’s a great opportunity that we could get away from some ideological dialogues that we have had in the past and have more talks about fact and science instead to help create a smoke-free future in Thailand,” said Margolis during a group interview on Monday.

Philip Morris International, along with its sister organisation in Thailand, is working to create a smoke-free environment by planning to completely discontinue the production and distribution of combustible cigarettes and replace it with smoke-free products as soon as possible, according to Margolis.

Since 2008, Philip Morris has invested more than Bt1.8 trillion to develop smoke-free products or “heat-not-burn” cigarettes that remain well below the point of combustion when lit.

Scientific research has found that the primary source of harm from smoking comes from harmful chemicals in the smoke from a burning cigarette, not the nicotine that is consumed.

Aerosol from Philip Morris smoke-free product, left and centre, versus tar from smoke from a cigarette, right.

Hence, Philip Morris developed smoke-free cigarettes under the idea that if the combustion process is eliminated, then the risks can be reduced.

“If you smoke, the best thing to do is to quit. If you don’t smoke you should not start. And of course if you don’t quit, the better alternative will be to switch to better alternatives [that are less harmful],” he said, emphasising the company’s push for a smoke-free future.

In the past, the tobacco firm held regular discussions with the Commerce Ministry and Excise Department to share its scientific results and studies on alternative products, but it never held face-to-face meetings with public health agencies.

Margolis said moves to cut down on tobacco-related harm and promote smoke-free products was mostly successful in countries where scientific findings were shared with and embraced by public health agencies, and companies like Philip Morris were allowed to share related information with consumers so they could learn about the products and their benefits.

For instance, Public Health England launched a campaign telling smokers in the UK that vaping is not as harmful as smoking, while New Zealand government launched a website educating people on e-cigarettes and a campaign encouraging smokers to switch to vaping.

During the interview, Margolis also presented independent findings from some international health organisations which found that smoke-free products can significantly reduce health risks.

Recently, the US Food and Drug Administration confirmed that the Philip Morris “heat-not-burn” cigarettes were appropriate for the protection of public health and has authorised its sale in the United States.

Ban making little difference

Margolis said the nearly 11 million smokers in Thailand deserve a legitimate right to access these smoke-free products so we can make every day a “no-smoking day”.

He also pointed out that despite strict measures, the number of smokers has hardly changed – in 2015 it was 19.9 per cent, which dropped to just 19.1 per cent in 2017.

Under the National Tobacco Control Plan, Thailand aims to reduce the number of smokers to 16.7 per cent within this year.

Margolis said he really hopes the new government will review its ban on e-cigarettes and other alternative products, citing new Public Health Minister Anutin Charnvirakul’s progressive election campaign to promote cannabis farming or a “cannabis liberalisation policy”.

“It would be very ironic if you can smoke marijuana, but smokers are given no access to other alternatives to cigarettes,” Margolis said.

Since 2008, Philip Morris has invested more than Bt1.8 trillion to develop smoke-free products

In a move towards lifting a ban on e-cigarettes and legalising it as a “controlled” instead of “banned” substance, the Commerce Ministry’s Department of Foreign Trade late last year tasked the Tobacco Control Research and Knowledge Management Centre with studying legal hurdles affecting the implementation of the ban.

Opponents, especially officials from the Public Health Ministry, insist that e-cigarettes remain prohibited, saying the devices are hazardous to health and could encourage young people to start smoking.

Margolis, however, defended this by saying cigarette alternatives were specifically designed for adult smokers, adding that the design, flavour and packaging are in no way attractive to youth, non-smokers or even former smokers.

Pre- and post-market studies on all of Philip Morris’s alternative cigarettes being sold in 48 countries also found that the youth are not attracted to these products.

He said a study conducted by a third party in Japan, where Philip Morris’s smoke-free products can be sold, showed that actual usage of the product by young people was less than 0.1 per cent.

“At Philip Morris, we are strongly against young people having access to any tobacco products, be it cigarettes or heat-not-burn cigarettes or e-cigarettes. Because of that, we advocate, obey and usually go beyond the wall in terms of marketing code. And for this new category, it’s no different,” he said.

The 1 GBPs internet capacity can support multiple connections and devices on a simultaneous basis. It can facilitate the download of a 2-hour-long HD movie in only 36 seconds, a 4K movie of the same length in 4 minutes, 150 images files in 3 seconds, 25 files of 120 MB songs in 1 second and a 1.5 GB online game in 12 second.

The service will eventually cover all regions in the countries after the initial launch in Bangkok, Chiangmai Mai, Phuket and Khon Kaen provinces.

He said existing TrueOnline customers could also upgrade their internet packages to 1 GBPs from July 23 to December 31, 2019.

The firm would spend Bt60 million in promotional and marketing activities to drive demand.

“The new internet package comes with a special router, bundled with advance technology and innovative solutions ,” Tanapoom said.

The firm currently has 3.5 million household subscribers of its existing internet packages, he said, adding that he expected around 30 per cent of new customers will subscribe to the 1 GBPs packages. TrueOnline sees a 11 per cent growth in revenue this year from more than Bt12 million last year.

According to Slingshot, many organisations around the world are creating a “wellness culture” within their companies. Harvard University says enterprises with this culture have more advantages in terms of business growth. So in responding to high demand, Slingshot says, it has launched the first-of-its-kind “Leading Well, the Leadership Wellness” programme – a course that focuses on the sustainable growth of leaders, teams and organisations.

The company has teamed up with Aro Ha Wellness Retreats, a renowned wellness lifestyle centre and the winner of the World’s 10 Best Wellness Retreats of 2019, guaranteed by 17 international awards. The programme targets groups of leaders, senior executives, HR chiefs and SME business owners, and hopes to become the front-runner wellness leadership consultant in Thailand, confident that the firm will witness growth of 30 per cent this year.

Slingshot chief executive officer Sutisophan Chuaywongyart said the human resources development consultancy business is changing rapidly.

“As a consultancy firm, Slingshot Group has been a provider of leadership and organisational development for 15 years. The company has provided consultation to more than 100,500 leaders and has helped them move successfully through transition periods. This year, the company has launched its new leadership wellness programme, the first company to do so in Thailand,” she said.

“The programme is expected to help the company grow by 30 per cent this year as current leaders are starting to take an interest in their wellbeing. According to statistics, the health market is one of the businesses that grows faster than the overall world economy. However, most of the market seems to be focusing on beauty and anti-ageing (25 per cent), followed by healthy food and the weight loss business (16 per cent) and the health-tourism business (15 per cent). For leaders’ wellbeing within the workplace the focus is just 1 per cent. With this insight, Slingshot Group decided to penetrate this new market to spread the word and raise awareness,” Sutisophan said.

Harvard University has said that organisations emphasising on employees’ health and wellbeing have an advantage in this era. Companies in the Americas, Europe, Australia and New Zealand have turned their attention to a culture of wellness as well. The study by the MDA Leadership Consulting Institute combined with forecasts of future science found that the new role of future leaders is to create a culture of wellness, which is one of the strategies that can enable organisations to achieve sustainable success. Therefore, it is a trend that cannot be missed. In order to successfully lead the wellness culture, leaders must act as role models and adopt a healthy lifestyle to create sustainable success, Slingshot said.

Slingshot is now gearing up to provide consultation to high-level leaders, who are the essential part in driving company policies and leading the organization.

According to the company, many firms are experiencing rapid change, causing leaders to face various obstacles that directly affect their performance. The research regarding leaders and stress found that: 66 per cent of leaders believe they have been stressed for more than five years; 88 per cent say work is the main cause of stress, especially in their leadership roles; 60 per cent think companies do not provide enough tools or methods to help them cope with stress; and 80 per cent believe that having a coach or a group of friends can help them manage stress and lead a healthy lifestyle.

Manthana Raksachad, managing director of Core Business, Slingshot Group, said that according to research from Aro Ha Wellness Retreats, after being coached for six days by the institute, 16 per cent of the leaders who participated in the programme have had a better quality of life and are happier a month after joining the course. Based on the results of the study, 13 per cent of the programme’s participants made an impact at work, while 22 per cent could feel an improvement in terms of physical health. In addition, the research mentioned that stress affects one’s decision-making ability by enabling the use of emotions rather than making a decision based on information, which could lead to wrong and costly decisions for any business.

Based on information from the United States, people who try to create a wellness lifestyle for themselves have an 80 per cent chance of failure. Therefore, the majority of people are looking for consultants to coach them and help them create a healthy lifestyle.

The first programme launched by Slingshot is a leadership development course for executives who want to have a lifestyle of wellness over a period of 12 months. The highlight of the programme is the coaching of leaders in order to change their attitudes. The course also expects the executives to create a policy of wellness within their companies and apply the model to create a strong organisation.

“The programme covers all six areas of wellness, as it is more than just possessing good physical health,” Manthana said. “They are emotional wellness, physical wellness, spiritual wellness, intellectual wellness, social wellness and environmental wellness. The highlight is the emphasis on creating an organisational wellness culture through leaders to bring about sustainable behavioural change. We give the formula to leaders and guide them through activities, a first-hand experience which will create real and long-lasting changes.”

Slingshot says wellness leaders can expect to see results in two aspects – an increase of efficiency within the organisation resulting from an improvement in the leaders’ performance, and better physical and mental health, which helps decrease business risks that stem from a leader’s illness, or even death from stress and health problems. For example, a London Business School study says companies that were named the most desirable places to work in have a 50 per cent higher share value than others.

Slingshot expects 100 top-level executives to join its wellness programme by 2020.

The Cross-border QR Payment system

“The cross-border QR code is a convenient and secure way to pay, not just in the cardholders’ country of origin but whenever they go overseas. It helps expand the QR payment landscape, which is currently confined to domestic use, by leveraging on an interoperable infrastructure,” says Au Chong Wei – Head of Innovative Product, UnionPay International Southeast Asia.

He added that UnionPay Cross-Border QR payment is interoperable. Consumers can make payment conveniently to 10.8 million merchants that accept UnionPay QR payment, about 300,000 of which are outside Mainland China.

“The acceptance is expanding rapidly beyond the Chinese market to cover 30 countries and regions, including Thailand, Singapore, Hong Kong and other countries in East Asia, Southeast Asia and Middle East,” Au added.

UnionPay Cross-Border QR solution also provides an after-sales channel for users when it comes to disputes. It can also be implemented with contactless payment solution to allow users to access a combined contactless and QR acceptance network. Most importantly, it allows integration with existing proprietary QR solutions such as PromptPay.

Currently, there are 23 UnionPay enabled e-wallets in 11 markets that can make payment via UnionPay Cross-Border QR code. There are also over 20 e-wallets projects in the pipeline globally.

Au added that Thai consumers who own a smartphone will have greater access to quick, easy, secure and convenient payment solutions within Thailand and abroad via QR Code. They simply need a smartphone to pay at a wide variety of merchants, without having to worry about not having the exact amount of notes and coins to pay for the products and services. They can also enjoy the convenience of not having to carry multiple cards and cash in their wallet.

There are two modes of QR Code Payment: Merchant Presented and Customer Presented.

For Merchant Presented, consumers simply need to either scan the QR Code, and key in amount and pin to complete the payment. This is an initial trend and currently more prevalent in Thailand.

For Customer Presented solution involving the cross border payment, UnionPay is the only card scheme offering this mode in the global market. Consumers can present the generated QR code for the merchant to scan and receive the notification. It is now popular in China, especially among large-scale merchants because merchants have more control, but it comes with higher cost of infrastructure.

The company expects to see more of this Customer Presented in Thailand. Thai cardholders can use this Customer Presented service via Krungthai NEXT application.

Zheng Pingfu, Thailand Country Manager, UnionPay International, said that In Thailand, the company has worked on the implementation of cross-border QR Code payment with Bangkok Bank and Krungthai Bank.

BBL’s BeWallet application supports Merchant Presented solution globally, while Krungthai NEXT supports the Customer Presented solution in Thailand and Mainland China.

The Open-loop Transit Payment system

For the Open-loop Transit Payment system, it allows commuters to pay for transit just as they would for any other purchase made with their UnionPay contactless debit or credit card.

Instead of having to periodically top-up their transit cards in which the stored funds are largely restricted to transit, commuters can arrive in a city from another city or country and travel using their bank issued cards in their wallets, Au said.

“This not only remove the hassle of having to purchase a transit card, but also the hassle of getting a refund when they leave the city,” he added.

Currently, Thai customers with contactless UnionPay cards (i.e. Krungthai Travel UnionPay Debit Card and KTC UnionPay Credit Card) can use their cards to access:

• Buses in about 900 cities/towns in Mainland China

• Underground in 16 major cities in Mainland China

• Kaohsiung Metro (KRTC) in Taiwan

• Aeroexpress Train in Moscow

• KLIA Transit, airport links in Kuala Lumpur

“Besides Mainland China, Taiwan, Russia and Malaysia, we are engaging with related government bodies to implement the Open-loop Transit Payment system in several other key markets, especially those with already enabled contactless transit payment,” Au added.

Zheng said that Thai consumers in general have a positive outlook towards a cashless society. According to findings from The Future of Payments Study conducted by UnionPay International and Nielsen with 400 mobile payment users in Thailand aged between 18 and 65, seven in 10 respondents (71 per cent) would like for the country to go cashless, and six in 10 (61 per cent) are “confident” about living in a completely cashless society.

Coupled with the increasing smartphone penetration in Thailand, there is huge opportunity for payments innovation.

The Bangkok public transportation is also currently undergoing expansion and the city itself is expanding every day. This presents a great opportunity to enhance the system and provide the best commuting experience, including transit payment, to city dwellers.

“We look forward to a closer collaboration with all relevant partners in Thailand including transport providers, merchants, financial institutions and regulatory bodies to bring about more convenient payment solutions to consumers and merchants,” Zheng said.

Au added that as a global payment brand accepted at over 55 million merchants and with over 7.5 billion cards issued worldwide, UnionPay is trusted by consumers and businesses alike.

“We are in a unique position in providing win-win payment services that benefit all stakeholders in the industry,” Au said.

The portfolio is an opportunity for long-term investment in companies involved in the mobile, wearable and digital payments sector, including those offering blockchain solutions. The Future Payments portfolio combines both stocks and cryptoassets, presenting a diversified strategy across both asset classes.

“The future of money is constantly evolving into a complex global network. Challenger companies and technologies are entering this space, turning the industry on its head and prompting traditional players to redefine how the world pays for its goods and labour,” said Yoni Assia, chief executive and co-founder of eToro.

“We’re offering retail investors a chance to tap into the payments industry through a diversified portfolio across two different asset classes – stocks and crypto – making this portfolio unique.”

Jasper Lee, Managing Director of eToro Asia, said: “Asia is an important market for eToro and we are committed to growing our user base in the region. Our latest portfolio includes the likes of Alibaba and Tencent, big name stocks that will resonate with retail investors here.”

The portfolio provides exposure to global stocks including Wirecard, Alibaba, Tencent, Bankia SA and Baidu, as well as such cryptoassets as Bitcoin, XRP and Dash. The decision to include cryptos is based on the belief that the payments industry will likely be one of the first to properly adopt blockchain solutions. The companies making up the equity allocation of the portfolio are chosen based on their commitment to innovation within the payments sector, as well as challenger brands that seek to disrupt the industry.

“The way people choose to invest is changing. People want to invest in ideas and technologies that they believe in. Our CopyPortfolios are about making it as easy as possible for ordinary investors to access thematic investing,” Assia added:

FuturePayments is the latest in eToro’s expanding list of thematic portfolios, which include portfolios providing exposure to renewable energy, big tech, cryptoassets, gaming companies, banks, genome engineering and the cannabis industry.