#Japan #Shibuya #RemitAid #international payments #Thai Baht

RemitAid Enhances Payment Solutions for Thai Market

RemitAid, a technology company based in Shibuya, Tokyo, is taking a significant step in enhancing international payments with its latest offering: support for the Thai Baht (THB) through its service "Rakuyasu Payment Transfer." The mission behind this expansion is to create new pathways for international payments using cutting-edge technology.

With this update, businesses utilizing RemitAid's services can now accept payments in Thai Baht and can guide their local partners to take advantage of a domestic account in Thailand. This innovation makes it easier for overseas clients to pay as if they were making a transfer within their own country, mitigating the issues that Japanese companies traditionally face—such as high transfer fees, uncertain arrival timings, and cumbersome payment confirmations—in international transactions.

Overview of the Thai Baht Addition

"Rakuyasu Payment Transfer" allows Japanese companies to receive payments from overseas partners without needing to establish local subsidiaries or branches. The recent service enhancement allows businesses to issue local accounts for their Thai counterparts, facilitating payments in Thai Baht.

Previously, international bank transfers were often laden with various fees—including exchange rates and intermediary bank fees—alongside the complexities of paperwork for both senders and receivers, which could lead to frustration and potential delays. Leveraging local accounts simplifies this process, allowing overseas clients to treat payments similarly to domestic transactions, which in turn simplifies the management of incoming payments for Japanese companies.

The significance of this development cannot be understated, especially for businesses that continuously export to Thailand or engage with local agents and corporate clients. Reducing the burden associated with payment arrangements, confirmations, and collections can lead to more stable operations and better cash flow management for these companies. RemitAid is committed to providing an environment where Japanese businesses can more easily engage in trade with Thailand through this addition.

Importance of Thailand for Japanese Firms

Thailand has long been a crucial market for Japanese businesses across manufacturing, logistics, and sales. According to Japan's Ministry of Foreign Affairs, the projected export value from Japan to Thailand for 2024 stands at approximately 4.02 trillion yen, while imports from Thailand to Japan are expected to reach 3.73 trillion yen. The total trade volume between Japan and Thailand is estimated to reach 7.8 trillion yen.

The number of Japanese firms operating in Thailand has risen to over 6,083, highlighting its role as a vital partner in the development of the Mekong region. As per the Japan External Trade Organization (JETRO), Japan is ranked as the second-largest import partner and the third-largest export partner for Thailand in 2024, indicating a sustained, strong trade demand between the two nations.

Particularly in the food sector, demand for Japanese agricultural and food products in Thailand is expanding. JETRO data suggests that by 2025, the export value of agricultural and food products from Japan to Thailand is expected to be around 73.5 billion yen, marking a significant increase of 17.1% year-on-year. Thus, the ease of payment transactions with Thailand remains a pivotal operational challenge for a wide range of businesses in manufacturing, food, e-commerce, and wholesale.

Feedback from Stakeholders

Takuji Kojima, CEO of Concierge Co., Ltd., provides insights into the challenges of international trade, particularly towards Southeast Asia. His company exports used apparel to the region, and he emphasizes the burden of payment confirmation and transfer fees which can complicate business operations. Kojima notes that options like "Rakuyasu Payment Transfer" improve ease of use for local buyers, alleviating time and cost associated with repositioning payments.

He reports potential savings of around 30,000 yen in a transaction worth 1.15 million yen when comparing bank rates, which has delighted local customers. "Fewer payment-related anxieties allow firms to focus more on core transactions," he remarks, viewing the service as a robust ally in expanding overseas operations.

Yudai Ogawa, CEO of RemitAid, underscores the long-standing importance of Thailand for Japanese companies across various industries. With the additional capability for domestic account setups labelling it easier for Thai businesses to make payments, he believes this newfound structure will empower Japanese firms with lower costs and faster payment receipts. Looking forward, RemitAid is dedicated to enhancing the ability for Japanese firms to engage confidently in international trade.

Insights and Future Directions

In conjunction with the Thai market's expansion, Yudai Ogawa has released a discussion piece on his official note discussing perceptions from business leaders engaged in Thai trade. By addressing differences in trading practices and payment methods over bowls of Tom Yum Kung and Pad Thai, Ogawa aims to offer perspectives and hints for companies aspiring to venture into the Thai market.

RemitAid's future outlook includes continuing to refine and broaden the currency options and available countries for "Rakuyasu Payment Transfer," ultimately seeking to simplify the payment landscape for Japanese providers engaged in international transactions. This improvement encompasses more efficient transaction processes, stakeholder management, and enhanced compatibility with accounting and operational systems moving forward.

About RemitAid

RemitAid is a pioneering company focused on transforming international payment practices for Japanese businesses. Its head office is located in Shibuya, Tokyo, and it aims to mitigate the challenges faced by companies in reconciling international transactions while ensuring a convenient and cost-effective framework for successful global operations.