Visa, VNPAY Advance Contactless Payments with SoftPOS Partnership

9:45:18 AM | 6/28/2024

Visa, a world leader in digital payments, is collaborating with VNPAY, a financial services company providing electronic payment solutions in Vietnam, to enhance contactless payment via VNPAY SoftPOS. VNPAY SoftPOS, an NFC-enabled contactless payment solution, transforms Android 10 and above smartphones into POS devices enabling "tap to pay" transactions for merchants in Vietnam.

The innovative collaboration between Visa and VNPAY extends contactless payment acceptance for merchants, who can now use smartphones to process transactions from Visa contactless cards, Apple Pay, Google Pay and Samsung Pay. The move aligns with Vietnam's growing preference for contactless payments, with a 39% adoption rate as of Oct 2023, as per Visa's Consumer Payment Attitudes study, exemplified by a significant 70% contactless transactions penetration made on Visa cards as of May 2024.

VNPAY SoftPOS is for its integration into VNPAY Merchant, a comprehensive business development and sales management app. By converting phones into card payment devices, it enhances the shopping experience and reduces equipment costs for merchants. This technology has gained popularity across numerous sectors including supermarkets, retail stores, and taxis, and in countries such as China, Japan, India, the US, Canada, Germany, UK, and France.

Furthermore, VNPAY is ready to offer a comprehensive and prompt reporting system to support businesses in managing cash flows from various payment methods. This enables continuous updates on transaction statuses anytime, anywhere, helping merchants determine development strategies for their points of sale.

Visa’s SMB Research 2023 of 350 SMEs found that almost 75% of Vietnamese SMEs accept digital payments, and 42% accept card payments, prompted by their simplicity, sales impact, and security compared to bank transfers. SMEs also appreciate fee transparency, robust security, easy integration, and offline payment options in areas with low connectivity. The integration of SoftPOS meets these needs for SMEs and supports their growth ambitions. Over 80% of surveyed SMEs acknowledged the positive impact of card acceptance on revenue, while 84% saw increased turnover from card payments.

In Vietnam, VNPAY SoftPOS is the first solution to obtain PCI-CPoC version 1.0 certification from the Payment Card Industry Security Standards Council (PCI SSC). It also holds EMVCo Level 2 certification in line with Visa standards, to ensure user security and information safety.

Ms. Đặng Tuyết Dung, Visa Country Manager for Vietnam and Laos, said: "Our partnership with VNPAY reflects Visa's commitment to innovation. This technology enhances the customer experience and minimizes equipment costs for merchants and is aligned with the growing preference for contactless payments in Vietnam, At Visa, we remain dedicated to expanding acceptance and providing SMEs with digital payment solutions that meet the growing demand for contactless transactions from both businesses and consumers."

Mr. Niraan De Silva, CEO of VNLIFE cum Vice Chairman of VNPAY, said: “Our collaboration with Visa marks a significant milestone in our mission to innovate and provide top-tier payment solutions for merchants in Vietnam. This technology not only simplifies transactions but also reduces costs and enhances security for businesses of all sizes. At VNPAY, we are committed to driving digital transformation and supporting the growth of our merchants by offering cutting-edge, reliable, and convenient payment solutions.”

T.H (Vietnam Business Forum)