E-Payment Booms

2:23:10 PM | 18/10/2019

With a series of new useful features such as automatic registration/cancellation of debit card authorization, electronic cash top-up, money transfer to beneficiaries, traffic fare payment, water and electricity bill payment, expanded QR payment application, and balance statement notification, customers’ demands for quick and easy payment have been met.

According to a survey by Appota Company, which researches mobile phone behaviors, among 22 million smartphone users in Vietnam, a user has nearly 10 utility applications on his/her phone on average. In the last three years, application installations reached 72% in urban areas and 53% in rural areas. Mobile applications are becoming increasingly popular in many areas of life such as travel, mobility, banking and finance.

Most banks in Vietnam have developed financial and banking applications for customers. However, due to many factors, technological applications adopted by banks are varied and existing customers have a lot of options. In general, they are keen on convenient and fast utilities and security. To support and meet other customer needs, banking applications are also linked to many service providers.

Mr. Nghiem Thanh Son, Deputy Director of Payment Department, the State Bank of Vietnam (SBV), said, electronic interbank transactions totaled over 104 million transactions valued VND61 trillion (US$2.6 billion) in the first eight months of 2019, representing an increase of 19.57% in volume and 26.66% in value over the same period of 2018.

Personal account openings and uses kept growing. By the end of July 2019, about 83.3 million personal accounts were opened, 14.9% more than a year ago.

The number and value of domestic bank card-based payment kept rising, reaching more than 158 million transactions valued VND410 trillion in the first seven months of 2019, up 15.8% and 15.6% year on year, respectively.

Also in the January-July period, internet-based financial transactions totaled more than 226 million transactions worth about VND10,900 trillion (US$, up 51.8% and 18.3% year on year, respectively.

Mobile financial transactions reached nearly 202 million transactions valued over VND2,090 trillion in the reviewed period, up 104.9% and 155.3% year on year, respectively, thus maintaining the 3-digit growth achieved in previous years.

Technical and technological infrastructure for non-cash payment, especially electronic payment, continued to be expanded. By the end of July 2019, Vietnam had 18,841 ATMs and 262,733 POSs installed.

Mr. Son added that the SBV has adopted some policies to promote noncash payment. In particular, the central bank completed and carried out regulations on electronic payment; effectively applied the noncash payment development project for the 2016-2020 period and the project to promote banking payment for public services such as electricity, water, tuition, and social security. In addition, the central bank continued to upgrade the payment infrastructure and complete the interbank electronic payment system with new professional modules; directed early deployment and operation of an automatic clearing payment system for 24/7 automated clearing house (ACH), and connected with other industries and sectors in order to provide secure payment products and services.

In the coming time, the central bank will issue decrees and circulars to replace and amend existing rules on intermediary payment services and payment activities. All are aimed at limiting cash, facilitating noncash payment development, and creating a legal corridor to ensure safety, security, confidentiality and convenience for both service users and suppliers.

Quynh Anh