Thailand co-pay scheme hits 11.236 billion baht in five days

A record start for Thailand co-pay push

Thailand’s revived co-payment program, known locally as Khon La Khrueng and branded in this round as Let’s Go Halves Plus, has sprinted out of the gate. Spending reached 11.236 billion baht within five days of launch, according to the Finance Ministry, with consumers paying 5.689 billion baht and the state covering 5.546 billion baht through point-of-sale subsidies. Nearly 800,000 shops have been approved nationwide, underscoring the scheme’s reach across cities, towns, and rural communities. The program runs daily from 6 a.m. to 11 p.m. through December 31.

Momentum built quickly. On the first day, spending hit 1.9 billion baht. Over the first three days, accumulated outlays rose to 6.37 billion baht, with spending peaking on Friday, October 31, at 2.31 billion baht. During those early days, 9.44 million users made purchases across 667,624 stores, generating 43.33 million transactions. By then, 14.55 million people had already used their benefits, equivalent to roughly 72.7 percent of the 20 million entitlements.

How the co-payment works

The mechanism is straightforward. The government credits the G-Wallet inside the Paotang mobile app with 2,400 baht for registered taxpayers and 2,000 baht for non-taxpayers (age 16 and above). Each user can spend up to 400 baht per day at participating merchants, split evenly: 200 baht paid by the shopper and 200 baht covered by the state. The subsidy appears instantly at checkout, which makes the discount tangible and easy to understand.

Eligible spending spans everyday needs and local services. Purchases can include food and drinks, blue flag shops that sell low price staples, general retail, and service providers such as spas, massage, hair and nail salons, and public transport. The program bars purchases of lottery tickets, alcoholic beverages, cigarettes, gift cards and cash cards, prohibited items, and advance payment for future services. These rules aim to channel public support to regular consumption and local businesses.

Users must be physically present at the shop and pay by scanning the store’s QR code in the Paotang app. The spending window is 6 a.m. to 11 p.m. Food delivery will also be enabled this round, with Grab, Lineman, Shopee, and Robinhood slated to integrate from November 7, letting users order meals through approved platforms while still receiving the co-pay.

Registration and merchant onboarding: demand outpaced supply

Public interest was intense from the start. Registration for 20 million slots filled within ten hours on the opening day. To keep benefits active, registrants must make their first payment by November 11, after which unused rights are reallocated to others. The program is designed for broad access, and users do not need to hit the daily ceiling to keep participating on subsequent days.

Merchant participation has scaled quickly. Around 500,000 shops were approved at launch, including roughly 100,000 merchants returning from prior phases, with another 100,000 awaiting approval. The government has urged grocery shops, market vendors, massage and spa operators, motorcycle taxi drivers, taxi drivers, and other transport providers to join so consumers can use their subsidy on routine services. Officials have been dispatched to help small operators complete registration, and merchant sign-ups remain open until December 19. The administration has also sought to calm concerns about tax scrutiny to bring more micro businesses into the network.

Where the money is flowing

Early spending patterns point to everyday essentials and neighborhood businesses. On the first day of this phase, spending was led by blue flag shops at 709 million baht, followed by food and drink outlets at 697 million baht, general shops at 474 million baht, service shops at 10 million baht, OTOP vendors at 8 million baht, and public transport at 3 million baht. OTOP stands for One Tambon One Product, a program that promotes locally made goods.

Spending was most concentrated in these provinces on day one:

• Bangkok
• Chonburi
• Nakhon Ratchasima
• Samut Prakan
• Pathum Thani
• Nonthaburi
• Songkhla
• Nakhon Si Thammarat
• Chiang Mai
• Khon Kaen

What it means for small businesses and households

The co-payment design steers spending toward street vendors, family shops, and local service providers. It gives shoppers an immediate price cut, which encourages purchases at neighborhood groceries, wet markets, and food stalls, while also sending fares to taxi and motorcycle taxi drivers and sales to salons and massage clinics. A daily ceiling spreads activity across many days and helps money circulate through communities rather than spike in a single burst.

The Ministry of Finance expects this round to inject at least 88 billion baht into the grassroots economy before year end. Business groups anticipate a larger ripple, with leaders from the Thai SME Confederation estimating that about 200 billion baht could move through the economy as the funds pass from shops to suppliers, processors, and upstream farmers. Such multipliers happen when retail sales translate into orders for warehouses, factories, and producers.

The program has also coincided with an improvement in sentiment indicators. The Future Consumer Confidence Index rose in recent readings, while the Thai Chamber of Commerce’s survey reported an uptick in consumer confidence for the first time in months. Investor confidence assessments have emphasized the role of government stimulus measures, with the co-payment scheme frequently cited as a support for spending in the final quarter.

Why shoppers respond to the co-pay incentive

The scheme applies simple behavioral cues that encourage spending without handing out cash directly. People tend to value immediate gains, treat windfalls differently from regular income, and dislike missing out on benefits. The design taps these instincts in a practical way, and it does so through a digital payment rail that is easy to use and easy to audit.

• Present bias. The discount arrives at the moment of purchase, which makes the reward immediate. A 300 baht item suddenly costs 150 baht out of pocket, and the pain of paying drops on the spot.
• Mental accounting. Users often see the subsidy as bonus money and are more willing to spend it. That nudges people to use their daily right rather than save for later.
• Loss aversion and framing. A 50 percent co-pay feels like a gain. Missing the benefit by the end date feels like a loss, which motivates people to use their allowance.
• Nudges and choice architecture. Clear rules and a list of eligible merchants make the decision simple. The design also directs funds toward small and medium businesses and domestic services.
• Scarcity and salience. A fixed window through December 31 and a limited number of rights create urgency. The 50 percent figure is visible and easy to understand.

Because purchases go through the Paotang app, the government can monitor transaction patterns and adjust future policy based on how people actually spend. That data capacity is one reason co-payment has become a preferred tool for time bound stimulus.

Guardrails, restrictions, and enforcement

Clear boundaries are central to the program. The subsidy cannot be used for lottery tickets, alcoholic beverages, cigarettes, gift cards or cash cards, and other prohibited items. It also cannot be used to prepay for future services. Users generally need to be present at the shop and scan the merchant’s QR code in the Paotang app to pay. Food delivery orders will be a controlled exception once the linked platforms go live.

Participating businesses face compliance checks. Massage and spa operators must ensure that the location in the Thoong Ngern merchant app matches the address on their business license. Authorities have warned that shops caught overcharging, claiming cash without a real sale, or selling prohibited items will face legal penalties. The Finance Ministry says it will reclaim funds from shops that violate rules and pursue legal action where warranted. The digital trail helps investigators detect red flags.

How this round fits with past phases and policy choices

Khon La Khrueng is familiar to Thai households. The scheme ran in five phases between 2020 and 2022 during the pandemic, using a combined budget of roughly 234.5 billion baht. It helped soften living costs and kept small businesses afloat during a difficult time. The government kept the technical infrastructure intact, including the Paotang app for consumers and the Thoong Ngern app for merchants, which made a fresh rollout easier.

The current administration revived the scheme as a Quick Big Win measure to support spending in the final quarter of the year. This phase covers 20 million entitlements with a program budget of 44 billion baht, and it expands coverage to food delivery platforms. Policymakers have often weighed co-payment against direct cash transfers. Co-payment tends to direct money to domestic shops and services and reduces leakage to imports. Researchers have suggested tweaks such as minimum spending thresholds and tighter use-by dates to speed up utilization. For this round, officials have opted for a daily cap, a fixed program window through December 31, and a simple 50 percent subsidy at the point of sale.

What to Know

• Spending reached 11.236 billion baht in five days, with consumers paying 5.689 billion and the state covering 5.546 billion.
• Nearly 799,205 shops were approved nationwide by day five, and merchant registration remains open until December 19.
• The program runs daily from 6 a.m. to 11 p.m. and ends on December 31.
• Users receive 2,400 baht in credits if they file income tax and 2,000 baht if they do not file, with a daily cap of 400 baht split 50-50.
• Registration filled 20 million slots in 10 hours; first purchase must be made by November 11 to keep rights active.
• Food delivery via Grab, Lineman, Shopee, and Robinhood is scheduled to start on November 7.
• Allowed purchases include food and drink, blue flag shops, general retail, select services, and public transport; prohibited categories include lottery, alcohol, cigarettes, gift cards, cash cards, and advance services.
• First day spending breakdown: blue flag shops 709 million baht, food and drinks 697 million, general shops 474 million, services 10 million, OTOP 8 million, public transport 3 million.
• The Ministry of Finance expects at least 88 billion baht in cash circulation from this round by year end.
• Authorities will reclaim funds and pursue legal action against shops that overcharge, fake sales, or sell prohibited items, with transaction data used to spot abuse.