Smart cards to dominate market

12:19 | 26/06/2016 Finance - Banking

(VEN) - The Vietnamese card market has achieved impressive figures over 20 years with the issuing of around 82 million of domestic bank cards, while card payment revenues reached nearly VND1,700 trillion by the end of 2015.

Smart cards to dominate market

Strong growth

The Vietnam Bank Card Association (VBCA) currently has 40 members, accounting for 99 percent of card market share. The number of domestic cards accounts for about 90 percent of the total issued cards. By the end of 2015, some 40 among 51 banks issued more than 81.85 million of domestic cards with a focus on debit cards, while eight banks issued 256,825 domestic credit cards. In addition, 32 banks and 37 banks issued international debit and credit cards, while 29 banks issued both of them.

VBCA Chairman Dao Minh Tuan said that total international cards reached more than 9.24 million by December 31, 2015, an increase of 16.23 percent compared to 2014. Card payment revenues also recorded strong growth of 88 percent from VND895.675 trillion in 2011 to nearly VND1,700 trillion last year.

Transactions via automated teller machines (ATM) slightly increased as banks have paid attention to developing point of sale (POS) terminals. Vietnam had 16,573 AMTs and 217,470 POS terminals by the end of 2015, an increase of 23 percent and 181 percent compared to 2011, respectively.

Developing contactless payment systems

Making secure payments and expanding the scale are top targets given out by commercial banks in their development strategies in 2016 and the following years.

Many commercial banks have stepped up the upgrading of features through promoting investment in modern technologies, while persifying card products and services. In particular, banks have paid great attention to developing smart card products such as chip cards based on Europay, MasterCard and Visa (EMV) standard.

The entire market will no longer use magnetic stripe cards, but switch to chip cards based on EMV standard by 2020. The first five banks will apply the transformation on a large scale starting in 2017, contributing to strengthening security, reducing risks and losses arising from frauds. 

 

Duy Minh

Theo ven.vn