Thais spend freely after digital wallet turns into cash handout

Many use 10,000 baht payment for big purchases or to clear debts

Thai Prime Minister Paetongtarn Shinawatra, left, pushed through the first phase of the government's so-called digital wallet handout championed by her predecessor Srettha Thavisin, right. (Nikkei montage/Source photos by Adryel Talamantes and Hiroki Endo)

FRANCESCA REGALADO, Nikkei staff writer

October 3, 2024 12:31 JST

BANGKOK -- Bangkok taxi driver Witaya Prasertphand is among the many Thais who took advantage of the government's signature digital money stimulus falling well short of its grand ambitions.

The ruling Pheu Thai party had intended that recipients of the 10,000 baht ($305) handouts spend the money on food, nonalcoholic drinks and consumer products bought in accredited stores, and only within their electoral districts. They would be technically barred from using it to pay debts. Currently, Thai household debt is worth more than 90% of GDP.