14:06 | 14/05/2019 Finance - Banking
(VEN) - Contactless payment is becoming increasingly popular in Vietnam, in addition to contact payments and QR codes, attracting consumers with its convenience and high safety.
Streamlined and safe
Contactless payment is a secure method for consumers to purchase products and services via debit, credit or smartcards, by using radio frequency identification (RFID) technology or near-field communication (NFC). Contactless payments allow people to make cashless transactions in a streamlined and prompt fashion simply by waving their cards or smartphones and other mobile devices over a reader at the point of sale (POS) terminal. Since contactless payments do not require a signature or a PIN, transaction values are limited - in Vietnam they are capped at VND400,000.
Although in early stages of development in Vietnam, contactless payments are now available at retailers such as Aeon Citimart, KFC and CGV in Ho Chi Minh City and Hanoi.
More and more Vietnamese consumers are getting a better understanding of the benefits, security and convenience of non-cash payments in their daily transactions. According to the Visa Consumer Payment Attitudes Report, more than half of Vietnamese consumers know about contactless payments. Among them, 30 percent have used this means of transaction, while two-thirds are interested in trying it in the future.
Contactless technology has many advantages, such as faster transaction information processing, helping banks integrate many utility applications for customers in one card, increasing security in the process of use and minimizing the risk of criminal offenses (skimming).
Aware of the role and importance of non-cash payment, the prime minister issued Decision 2545/QD-TTg dated December 30, 2016 on development of non-cash payment in Vietnam during the 2016-2020 period, with a target of reducing the ratio of cash transactions to below 10 percent.
Some commercial banks have studied and cooperated to implement new technological solutions in payments on mobile devices, such as biometric authentication, QR codes, tokenization of card information, and contactless payments.
The contactless card was launched in Vietnam in 2013, when Eximbank cooperated with MasterCard to issue the MasterCard PayPass card. However, consumers have only become familiar with this technology since 2017, when a series of commercial banks such as Vietcombank, Sacombank, Techcombank, and Viet Capital Bank issued contactless cards.
So far, Sacombank has cooperated with foreign organizations such as Visa, MasterCard, and JCB to implement contactless technology on many international card lines. Vietcombank has also deployed this technology for its cards. In March 2019, the Saigon Joint Stock Commercial Bank (SCB) launched the SCB beYOU international payment card, with a variety of payment methods. Vietnamese people or foreigners residing in Vietnam can receive the card without proving their income.
This will be a year of great changes in payment methods, with the State Bank of Vietnam issuing a set of standards
for domestic chip cards and a basic set of standards for technical specifications of QR codes. Commercial banks will
also upgrade card acceptance points for the use of contactless cards.