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เผยแพร่ 14.06.2016 (4 ปีที่ผ่านมา) | แก้ไขล่าสุด 06.06.2020 | อ่าน 2533

National Payment Message Standard (NPMS) in WSIS

Executive Summary

National Payment Message Standard (NPMS) is payment message standard setting deemed to be crucial for future phases of payment systems development. The standard enables businesses and financial institutions to exchange payment data more conveniently by using standardized messages complying with ISO 20022 Financial Services to reduce data handling cost. The NPMS has been continually developed and improved by its stakeholders like Thailand Payment Market Practice Group (TH-PMPG), consisting of commercial banks, financial Institutes, and corporates. However, the adoption period has some challenges since they have to justify the implementation by using their business use cases.

I.Background Information

According to Payment Systems Roadmap 2010 directed by the Bank of Thailand (BOT), BOT plan for strengthening and developing the Thai payment systems to support the economic activities efficiently and securely. Therefore, a policy framework was formulated, and payment message standard setting deemed to be crucial in future phases of payment systems development. Electronic Transactions Development Agency (Public Organization) – ETDA together with Bank of Thailand, commercial banks, government departments, software developers, network operators, and a number of large corporates, developed the National Payment Message Standard (NPMS) to enable businesses and financial institutions to exchange payment data more conveniently by using standardized messages that comply with ISO 20022 Financial Services (Universal financial industry message scheme) to reduce data handling cost. NPMS was firstly promulgated by the Electronic Transactions Commission (ETC) on 2 January 2013 to encourage rather than strictly enforce the standard usage.

II.Goals and Timeframe

The main purpose of developing the National Payment Message Standard or NPMS is to encourage the strengthening and enhancing Thai payment systems in order to advance the economic activities efficiently and securely. NPMS play the essential role that allows:

(1)The Improvement of the efficiency in the exchange of electronic data between corporates and financial institutions.

(2)The ease of data linkage opposed to the current difficulty of using multiple formats.

(3)The Adoption of a common standard will help reducing costs and data management burden.

(4)An Increasing of convenience for users in initiating a transaction.

After the NPMS project was established and completed, there were many projects built upon the NPMS for testing and promoting to advance the Thai payment system. These included the improvement of the compatibility for the current business content and the interoperability with systems and standards to innovate uses of the standard such as Financial Institute -To- Financial Institute payment messages, financial invoice and so on. The timeline is presented below.



-NPMS was initiated by BOT



-Pilot project by BOT was set up to utilized NPMS with 18 financial institutions and corporates



-NPMS (Customer-to-Financial Institute messages – C-to-FI) was enforced by ETC as a national standard

-The Thai Customs Department launched  e-payment based on NPMS

-ETDA signed an MOU with SWIFT for cooperation in the Development of ISO 20022: NPMS



-ETDA set up Thailand Payment Market Practice Group (TH-PMPG)

-NPMS was reviewed to comply with CGI-MP by TH-PMPG



-New version of NPMS was enforced  by ETC

-According to BOT initiative, ETDA and National ITMX (ACH) have worked on Financial Institute -To- Financial Institute payment messages (FI-To-FI) for low-valued transfer

-ETDA, the Federation of Thai Industries and Revenue Department have worked on e-invoice and  e-tax invoice standard

-ETDA issued the recommendation on trade service messages standard  based on UN/CEFACT CII



-NITMX will deploy ISO 20022  FI-to-FI messages for bulk payment

-EIPP and EBPP will be set up according to BOT plan

-ETDA will work on the message standard for EIPP and EBPP

-More government agencies are going to adopt NPMS for their e-payment



-Revenue Department will launch a new service for e-tax invoice and e-Receipt based on UN/CEFACT CII


III.Added value and importance

There were many added values created from the NPMS project. First, in the project, a group, Thailand Payment Market Practice Group (TH-PMPG), was established to develop the NPMS Message. However, the objective of the group goes beyond the NPMS development. Its objective is to achieve better common standards in Thailand’s payment domain. At the beginning, it was a small group of participants. Currently, the group becomes larger and more diverse. Its members are financial institutions, corporates, government agencies, payment system providers, and software vendors. It not only develops and maintains the NPMS message standard, but also promotes the ISO20022 message standard in Thailand. This brings the sustainability of the standard. 

Another value came from the standard itself. When all data is standardized and in the same format, it builds up a part of big data and this big data is a foundation of doing data analysis. All these lead to comprehensive and credible financial economic statistics of Thailand. The data analytics would reveal much information which favor Thai Economics.

In addition, the NPMS could encourage interoperability with existing message standards and other standards like e-Invoice message. It could be used for supporting end-to-end straight-through-processing (STP) payment. The advantages of STP are to speed up the supply chain process and enable businesses and financial institutions to exchange payment data more conveniently.

Furthermore, NPMS is the message based on ISO20022. ISO 20022 is an international widely accepted standard in financial business domains. Thus, with NPMS, the financial transaction could be exchanged across border efficiently and securely and this facilitates trade transactions to be faster and more reliable.

Lastly, the experience of developing the standard could be shared among other countries. The experience could help them develop the standard, which is suitable for their business requirement. The importance of this is to promote the international interoperability on the payment system. One of the events was ISO20022 ASEAN Payment Systems Workshop in seven ASEAN Countries such as Vientiane, Lao PDR. Its purpose was to prepare the ISO 20022 for exchange e-payment system in ASEAN. In this event, the NPMS development team had an opportunity to share their experience for the participants and they would study and apply them.


However, completing the NPMS Message guideline was not the end. There were jobs need to be done. The main challenge was in convincing the corporate users to adopt the message standard. There were some criteria for them to consider before the adoption of the NPMS.

The first one was business justification related to future use of NPMS. NPMS was still new to the market and few financial institutes had experience of using it. Its potential has not been proven yet. However, there are many indicators or drivers illustrating that the NPMS had potential to grow its use over time. For example, NPMS is in a payment Roadmap set by Bank of Thailand, NPMS is enforced by Electronic Transaction Commission, a Government initiative on e-payment project based on NPMS (ISO 20022), and TH-PMPG was established. Moreover, NPMS is based on ISO 20022. It will show its potential of interoperability across border in the future.

Another was the evolution of the project relate to cost and benefit of the project. In the study of cost and benefit analysis, the strengths and weaknesses of alternatives would be revealed to satisfy transactions, activities or functional requirements for a business. There were many benefits described in this article. Yet, investment costs had to be paid before the growth of benefits was returned. The examples of the cost were the cost of migration for interoperating with legacy systems and the cost of maintaining both old and new systems in the transition period.

Furthermore, corporates were confined by proprietary standards and were comfortable with it. The reasons were these proprietary standards had been in the business for long and they fit in the business specification. Thus, it would be hard to decide to migrate to more open standard, but new since NPMS was developed after other proprietary message standards set their roots.

V.Relevance of the project to the respective Action Line

When the NPMS project is done, it would be beneficial to many stakeholders.


NPMS is a widely-accepted and free standard. It means that if corporates adopt the standard, they could freely switch from one commercial bank to another bank without concerning the frustration over changes to the system. Then, when the standard become common, it brings down the maintenance cost and reduces time of payment; internal bank, interbank, and international bank. Lastly, with interoperability between standard, remittance information could be exchanged between trade partners.

Commercial Bank:

NPMS is a community developed standard; It has been developed and maintained by TH-PMPG. The community would provide the sustainability to the standard. It has been continually maintained regarding to the current business content and new requirement. As a result, the bank could reassure variety of products to its customers. Moreover, with interoperability between standard, the bank could possibly exchange payment information such as remittance and tax etc. for its customers as an additional service.

Bank of Thailand (BOT):

Bank of Thailand as a regulator could get comprehensive and credible financial economic statistics of Thailand from the NPMS. It encourages the centralization of the payment processing data. This can lead to big data to support Thailand data analysis.

Public Sector:

The public sector can get the benefits of payment system which help them work more effectively. However, the real value of this is not just in the payment system. For instance, the revenue department could collect tax through the payment system. Moreover, with the system, financial transparency could be disclosed.


NPMS is payment message standard which is crucial for the future phases of Thai payment systems development. It benefits the payment system by reducing cost and giving convenience. It is based on ISO 20022, an international widely accepted standard. It supports interoperability between standards and countries. However, its challenging is on the adoption of it. It became a big change for the financial industry in Thailand. This is the reason why each stakeholders need to make a considerably decision. Thus, to develop the standard and move to the right direction, there are important facilitators like BOT, TH-PMPG and ETDA and this standard could bring a new page of financial industry of Thailand.