Hanoi (VNA) – The State Bank of Vietnam (SBV) is working to completethe legal corridor and build rational mechanisms to boost cashless payments,which helps prevent corruption, money laundering, and tax invasion.

Cashless payments are on the rise

According to head of the SBV’s payment department Pham Tien Dung, Vietnam hasleapfrogged Singapore and Malaysia in electronic payments.

Meanwhile, the Global Consumer Insights Survey 2019 by PwC, conducted in 27territories and countries worldwide, have shown that the growth in the numberof people making mobile payments in Vietnamese stores is at its fastest. Thecountry’s mobile payments increased from 37 percent last year to 61 percent ofdigital payments in 2019.

The SBV said that in thisyear’s first quarter, the inter-bank system handles more than 37 milliontransactions worth nearly 21 quadrillion VND (898.42 billion USD), up 23 percentin the number of transactions and 17 percent in value, respectively from thesame time last year.

Commercial banks have worked to integrate more functions onpayments, enabling their customers to pay for all kinds of bills through theirbank accounts. To date, there are 75 banks offering internet payment services,and 41 others providing mobile payment.

By the end of 2018, there were 18,587 ATMs, and 243,123 POSs across thecountry. Most of the machines are installed at shopping malls, supermarkets,convenience stores, restaurants, and hotels. Cashless payment services arebeing expanded to the public service sector via clinics, hospitals, andschools.

Cash still a preference

Experts have said that driving Vietnam towards an era of cashless paymentis not an easy task, with local people’s habit of using cash, as well as poorinfrastructure and connections between service suppliers and businesses billedas the main barriers.

Deputy General Director of Vietcombank Dao Minh Tuan said that among the 60percent of the Vietnamese nationals who are allowed to open bank accounts, 80percent of them prefer cash payments. Although more people shop online now, thecash on delivery (COD) method is still more widely favoured.

In addition, according to Tuan, many companies are reluctant to accept newpayment modes while there is a shortage of policies and mechanisms to encouragecashless payments.

Technology standards, policy needed

Tuan suggested that along with developing technology standards to implement cashlesspayments, building a tax preference policy for businesses would work to ensurethe country goes cashless.

Dung said that the SBV will expand the application of modern payment methodslike QR code, Tokenisation, mobile payment, and contactless payment, amongothers.–VNA