Electronic payments for online transactions remained modest comparedwith cash-on-delivery payments, according to a recent report of theMinistry of Industry and Trade on e-commerce in Vietnam.
In spiteof this, the e-commerce payment system is an important base for thedevelopment of e-commerce, which has great potential in Vietnam,ministry officials stressed.
According to the report, e-paymentsfor online orders accounted for a mere 19 percent of transactions usingthe 72 million ATM cards in circulation in the country.
DeputyIndustry and Trade Minister Tran Tuan Anh attributed the low percentageto consumers' skepticism over the quality of products being sold online.
A survey of the E-commerce and Information Technology Agency ononline shopping showed that 77 percent of consumers viewed the qualityof products introduced on websites as lacking. Exactly 38 percent ofrespondents described delivery services as poor and 20 percent believedonline prices were not competitive.
According to Nguyen PhatVinh Loi, head of Banknet.vn's HCM City office, only 50 percent of 72million ATM cards in circulation were being used and of these, onlyabout three million ATM cards were registered for online bankingtransactions.
He said the systems for electronic payment and e-commerce remained risky and made consumers feel insecure.
PhamTien Dung, chairman of Banknet.vn, said numerous cards, including ATMcards, were currently not widely accepted. In addition, when problemsoccur during the payment process, customers might find it difficult tofind someone who can solve their problem.
According to Bui QuangTien, director of the State Bank of Vietnam (SBV) payment department,electronic payment methods must be diversified along with thedevelopment of traditional payment methods to support the development ofe-commerce in Vietnam.
Experts said e-commerce had a greatpotential for development in Vietnam because of the growing demand foronline shopping. Figures showed that online retail turnover in 2013reached 2.2 billion USD and was expected to reach 4 billion USD nextyear and double digits in 2020.
Recently, the SBV established aninterbank electronic payment system, connecting 66 members under theSBV and 463 branches of 94 credit institutions, to meet growing paymentdemand and create conditions for the development of e-commerce.
Companiessaid electronic payment via mobile phones should also be givenattention as the number of smartphone users was rapidly increasing.
LastAugust, the SBV allowed the top five banks to implement mobile pointsof sale (mPOS), which would be more convenient to customers.
Underthe Government's 2011-15 non-cash payment development plan, cashpayments will be cut from 14 percent of all transations in Vietnam in2011 to less than 11 percent by the end of 2015.
The plan alsofocused on the development of card payments services, with the aim ofdeveloping 250,000 points of sale (POS) which would accept about 200million card payments per year by 2015.-VNA
In spiteof this, the e-commerce payment system is an important base for thedevelopment of e-commerce, which has great potential in Vietnam,ministry officials stressed.
According to the report, e-paymentsfor online orders accounted for a mere 19 percent of transactions usingthe 72 million ATM cards in circulation in the country.
DeputyIndustry and Trade Minister Tran Tuan Anh attributed the low percentageto consumers' skepticism over the quality of products being sold online.
A survey of the E-commerce and Information Technology Agency ononline shopping showed that 77 percent of consumers viewed the qualityof products introduced on websites as lacking. Exactly 38 percent ofrespondents described delivery services as poor and 20 percent believedonline prices were not competitive.
According to Nguyen PhatVinh Loi, head of Banknet.vn's HCM City office, only 50 percent of 72million ATM cards in circulation were being used and of these, onlyabout three million ATM cards were registered for online bankingtransactions.
He said the systems for electronic payment and e-commerce remained risky and made consumers feel insecure.
PhamTien Dung, chairman of Banknet.vn, said numerous cards, including ATMcards, were currently not widely accepted. In addition, when problemsoccur during the payment process, customers might find it difficult tofind someone who can solve their problem.
According to Bui QuangTien, director of the State Bank of Vietnam (SBV) payment department,electronic payment methods must be diversified along with thedevelopment of traditional payment methods to support the development ofe-commerce in Vietnam.
Experts said e-commerce had a greatpotential for development in Vietnam because of the growing demand foronline shopping. Figures showed that online retail turnover in 2013reached 2.2 billion USD and was expected to reach 4 billion USD nextyear and double digits in 2020.
Recently, the SBV established aninterbank electronic payment system, connecting 66 members under theSBV and 463 branches of 94 credit institutions, to meet growing paymentdemand and create conditions for the development of e-commerce.
Companiessaid electronic payment via mobile phones should also be givenattention as the number of smartphone users was rapidly increasing.
LastAugust, the SBV allowed the top five banks to implement mobile pointsof sale (mPOS), which would be more convenient to customers.
Underthe Government's 2011-15 non-cash payment development plan, cashpayments will be cut from 14 percent of all transations in Vietnam in2011 to less than 11 percent by the end of 2015.
The plan alsofocused on the development of card payments services, with the aim ofdeveloping 250,000 points of sale (POS) which would accept about 200million card payments per year by 2015.-VNA
