Illustrative image (Photo: VNA) HCMCity (VNS/VNA) - Nguyen Anh Duc, general director of Saigon Co.op, saidthe rate of cashless payment at its system, including Co.opmart, Co.opXtra,Co.op Food, and Co.op Smile, has increased sharply since last year from 3-5percent to nearly 21 percent now.
Ittargets a 30 percent ratio within four to five years.
SaigonCo.op has been collaborating with other companies to deploy a series of newpayment services and applications based on tech platforms that offer moreconvenience and privileges to customers shopping at its over 800stores, according to Duc.
Manyfactors have caused this surge in cashless payment like the impact ofcommunications, which has eliminated the “strangeness” consumers used to feelabout cashless payments, and the COVID-19 pandemic, which acted as a catalystin rapidly increasing the use of cashless methods.
Anotherimportant factor has been the improved infrastructure for connecting retailersand payment service providers and legal mechanisms to protect people makingcashless payments, and users' increasing trust in the confidentiality andsafety of digital payment.
Accordingto the State Bank of Vietnam’s payment department, more and more people pay fordaily essentials, air tickets, insurance, and others using cards, e-wallets orinternet banking.
Inthe first four months of the year, payment by cards increased by 15.7 percent year-on-year, internet payments by45.7 percent and mobile payments by 166.1 percent.
Paymenttrends in the economy have shifted towards non-cash modes, while the rate ofelectronic payments for public services is increasing.
Tran Vinh Tuyen, Vice Chairman of the municipal People’s Committee, said,“[Enabling] cashless payment for education and healthcare has yielded positiveresults.
“Studentsat about 80 percent of city schools no longer pay their tuition fees incash since 400 public schools have started collecting tuition via banktransfer.
“Halfof the city’s healthcare se♕rvices allow patients to pay fees cashlessly.”
“Thecity is on course to build a smart city, so building a cashless society isamong its main goals,” Tuyen said.
Toboost cashless payment in the city, on the occasion of Cashless Day on June 16the State Bank of Vietnam affixed the “cashless payment” label at Co.opmart Cong Quynh in District 1, many stalls at An Dong Market in District 5 and a petrol stationbelonging to Saigon Fuel JSC on Cach Mang Thang Tam Street in District 3.
Sacombank,in co-operation with Visa and Nextpay, has installed mPOS card swipe machinesat many booths at An DongMarket and plans to next install machines at other markets in District 5.
Further boosting cashless payment
Thenon-cash payment rate has increased in the city, but is still belowexpectations, according to banks and authorities.
Tuyen said many public facilities have yet to go cashless.
Thecity will continue to direct departmentsand agencies to promote non-cash payments for public services, he said.
Thecity has sent an urgent request to the Ministry of Finance to provide guidanceon specific financial mechanisms to allow administrative and non-bus𝓰inessorganisations to pay service charges to banks and e-wallets.
