Foreign exchange rate volatility has encouraged Thai travellers to increase their transactions on YouTrip, Southeast Asia’s leading multi-currency digital payment platform, as they prepare for the upcoming travel season.
According to Juthasree Kuvinichkul, a founding partner of YouTrip Thailand, foreign exchange transactions on YouTrip in Thailand have been surging during the second half of the year compared with the first half.
The rise is attributed to the high season for travel and currency fluctuations, she said.
Ms Juthasree declined to disclose the exact number of transactions for the period.
As of September, YouTrip Thailand reported its user base tripled since the end of 2022, with spending via the YouTrip card increasing fivefold.
In Thailand, YouTrip, a Singapore-based fintech firm, has partnered with Kasikornbank to offer travel card services.
The Federal Reserve’s recent policy rate cut of 50 basis points, which was larger than expected, weakened the US dollar against the baht.
The monetary policy direction of major central banks, including the Bank of Japan, have also contributed to foreign exchange volatility.
The yen recently fell to a 38-year low against the dollar, while declining sharply against the baht.
“The yen’s dramatic drop against the baht on Sept 27 drove Thai users to buy the yen on YouTrip, with baht/yen transactions increasing tenfold on that day,” she said.
“Thai travellers are stocking up on yen in preparation for Japan’s upcoming high travel season.”
On Sept 27, the yen depreciated to a historic low of around ¥4.39 per baht.
Japan remains a favourite destination among Thais, and the yen is one of the most actively traded currencies on the YouTrip platform, alongside the dollar, pound, euro and yuan.
In September this year, around 45,500 Thai tourists visited Japan, with about 15,000 spending via YouTrip cards on their purchases there.
Convenience, security, no fees, and exclusive privileges are the key factors driving Thais to choose the YouTrip travel card when spending overseas, according to Ms Juthasree.
While credit cards remain the most popular payment method among Thais when travelling overseas, spending via YouTrip cards continues to grow, according to the company.
YouTrip plans to launch a cardless digital payment option in Thailand by the end of the year to provide greater convenience for users, she said.
In Singapore, the majority of YouTrip users have already shifted from credit cards to the YouTrip travel card for overseas payments, reflecting the country’s digital-savvy consumers, noted the company.
YouTrip implemented the financial service in Singapore as its inaugural market in 2018, then launched service in Thailand in 2019. The company plans to next introduce the service in Malaysia and is in the process of expanding to other regional markets.
