Cashless Payments Set to Further Grow

9:39:21 AM | 6/24/2021

Statistics from the State Bank of Vietnam (SBV) show that cashless payments are increasing at a dizzying pace in both quantity and value, despite the complicated developments of the COVID-19 pandemic.

According to the SBV, by the end of April 2021, as many as 79 payment service providers made payment via the internet and 44 via mobile network. The whole market currently has more than 271,000 POS and more than 19,000 ATMs.

Cashless payment booming

Also at the end of April compared to the same period in 2020, transaction through the internet increased by 65.9% in quantity and 31.2% in value; through mobile phones increased by 86.3% in volume and 123.1% in value; through QR code increased by 95.7% in quantity and 181.5% in value.

To achieve the above results, the Payment Department (SBV) said that in addition to completing the legal framework, the banking industry especially prioritizes investment in technical infrastructure and technology for interbank electronic payment, financial switching and electronic clearing, ATM, POS. As a result, these systems, in addition to keeping a good growth rate, also improve risk management and security in transactions.

On that basis, banks and payment intermediaries and fintechs have applied many breakthrough technologies to their business operations to offer modern, friendly and convenient products and services to customers such as eKYC, QR code, contactless payment.

Simultaneously, they also gradually build a centralized, standardized and integrated digital infrastructure to create a spreading digital ecosystem such as a mobile banking ecosystem connected to public services, finance, telecommunications, electricity, and transportation and medical service.

Currently, the SBV has directed the National Payment Corporation of Vietnam (NAPAS) to provide financial switching to allow direct payment connection through the National Public Service Portal for all credit institutions/payment intermediaries in need. As a result, payment via banks for public services has expanded in terms of the number of services deployed, the scale of processing and the quality of services.

For example, on June 15, 2021, in order to establish a common VietQR standard and open a transaction limit of VND500 million/transaction, Napas and 14 member banks held a ceremony to announce the VietQR brand identity and Napas247 fast money transfer service by QR code.

Mr. Vu Thanh Trung, Director of Digital Banking Division of Military Commercial Joint Stock Bank (MB), said that Napas247 fast money transfer service by QR code gave customers completely new experiences, superior to those using regular money transfers.

"The transfer/payment thus becomes simpler and more convenient. Customers do not have to remember account numbers, reduce operations as well as avoid mistyping accounts leading to wrong transfers, helping to reduce risks for customers," Mr. Trung said.

According to Mr. Trung, MB's strategy in developing QR services is aimed at all customers. In particular, the group of customers who are shop owners that have not used technology for payments are of special interest to the bank.

All-in-one payment in Hanoi

Hanoi is the economic center of the country. Recently, Hanoi has just issued a plan to promote cashless payments in the area in 2021.

The goal of the plan is to promote cashless payments, digital transformation in banking activities, innovate and upgrade information technology infrastructure, expand the digital ecosystem to develop products and banking services.

The plan aims at monitoring payment systems to ensure safe and efficient operation; supervising the provision of intermediary payment services to ensure compliance with legal regulations; enhancing security and safety in electronic payments and card payments.

Simultaneously, the plan aims at promoting programs of exemption and reduction of electronic payment service fees to directly support users, especially online payment fees for public administrative services, contributing to the implementation of the socio-economic development plan in 2021 of the city; contributing to building e-government, creating a basis for the application of level 4 online public administrative services; improving the quality and operational efficiency of public administrative and non-business units to better serve people and businesses in the area.

In addition, Hanoi will also promote the development and application of modern, easy-to-use payment and money transfer methods and models, creating favorable conditions for customers, especially in tax collection, payment, and fixed bill payment (electricity bill, water bill, school fees, telecommunications bills), hospital fees, salary payments and social insurance allowances suitable to conditions in rural, remote and isolated areas in Hanoi.

According to Ms. Le Thuy Sen, Director of the Communications Department (SBV), promoting cashless payment is one of the solutions for the Government and the State Bank to accelerate the National Financial Inclusion Strategy.

Ms. Le Thuy Sen said: "Cashless payment is a way to blur geographical space, age limit and livelihood limit. As a result, all classes of society can access financial services faster, safer and more effectively."

Source: Vietnam Business Forum