Vietnam’s dong goes cashless

06:00 | 12/05/2022 Economy

(VEN) - Cashless payments have become popular in many countries in recent years, greatly benefiting individuals and institutions, and offering banks an opportunity to accelerate the digital transformation process.

vietnams dong goes cashless
Cashless payments gain ground throughout the world

Strong growth

Banks have devised many solutions to develop retail banking services on digital platforms, such as mobile banking, internet banking and QR codes. With digital solutions, customers do not need to go directly to transaction offices, but are able to use the bank’s products and services. They can also make quick and convenient payments.

According to the State Bank of Vietnam (SBV), as of now, more than 1.8 million accounts and 1.5 million cards have been opened by the electronic Know Your Customers (eKYC) system. In addition, cashless payments through e-channels have grown strongly in the past five years, with transactions via mobile devices increasing by 50-80 percent a year and via the internet increasing by 35-40 percent a year. The percentage of adults with payment accounts at banks has reached 66 percent.

In 2021, transactions via the internet and mobile devices increased by 48.8 percent and 76.2 percent in number and 32.6 percent and 87.5 percent in value, respectively, while those via QR codes increased by more than 200 percent compared to the previous year.

According to the National Payment Corporation of Vietnam (NAPAS), the unit has completed connecting payment infrastructure to 48 localities as well as 15 ministries, agencies and public service providers to provide online payment services for five groups on the National Public Service Portal, including social insurance, real estate tax, traffic violation fines, court fees, and other fees and charges. Payment methods implemented by NAPAS include chip cards issued by banks, bank account numbers and VietQR codes launched by NAPAS in cooperation with NCB and Nam A Bank.

The cashless norm

Global consumption habits have changed drastically since the outbreak of the COVID-19 pandemic, with digital technologies often replacing face-to-face contact.

Le Anh Dung, deputy director of the SBV’s Payment Department, said nearly one million new accounts have been opened to use Mobile Money services within a short time of implementation. To make cashless payments a norm, the SBV has developed legal regulations to facilitate the deployment of payment services based on advanced technologies.

Commercial banks are encouraged to invest in technology infrastructure, conduct payment connection to the National Public Service Portal and other services in the economy, establish a digital ecosystem and provide safe and convenient payment products and services in order to improve customer experience.

Banks are also required to strengthen information safety and security to create peace of mind for users.

Le Van Tuyen, deputy director of the SBV’s Payment Department, said a project on the development of cashless payments in Vietnam in the 2021-2025 period aims to make cashless payments a norm in urban areas and expand their coverage in rural areas.

Ngoc Thao