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Banking & Finance

Forum promotes non-cash payments

Released at: 16:51, 31/05/2019

Forum promotes non-cash payments

Photo: Ngoc Lan

Banking Vietnam 2019 held on May 30 in Hanoi.

by Ngoc Lan

The development of Vietnam’s banking system in recent years has created conditions for more and more customers to access banking services, so increasing the use of banking and financial services, especially non-cash payment services, which play an important role in reducing cash use in the economy, Mr. Nguyen Kim Anh, Deputy Governor of the State Bank of Vietnam (SBV), told the Banking Vietnam 2019 forum held on May 30 in Hanoi.

According to SBV figures, 2018 was a remarkable year in electronic payment development in Vietnam, with internet payments and mobile payments recording impressive growth in terms of transaction value, of 19.5 per cent and 169.5 per cent, respectively, compared to 2017. PwC, one of the four leading auditing companies in the world, ranked Vietnam as the fastest-growing market for mobile payments in 2018.

Many banks and payment deposit organizations in Vietnam have also applied advanced solutions and technologies to reduce costs, enhance safety and security for products and services, and increase the customer experience, such as biometric authentication (fingerprint, face), payments based on fast response codes (QR codes), safe and convenient payments via encryption of card information (Tokenization), and contactless payments.

Payment by QR code is also called one touch payment, and is of much interest to organizations promoting payments via mobile phones. There are now 16 banks providing the payment service and 30,000 points accepting QR code payments.

Transactions by ATM in the first quarter of 2019 reached 232.8 million, worth VND676.55 billion ($29 million), an increase of some 13 per cent over the same period last year. Transactions via POS also grew impressively, by 50 per cent compared to the previous quarter, reaching 55.8 million transactions worth VND132.922 billion ($5.7 million).

To promote comprehensive financing and develop electronic payments in the near future, Mr. Anh said due regard needs to be given to the trend of digitizing banking services, which places customers as the center and changes from limited interaction in offline environments to an online trading environment, so that customers can access and use banking services seamlessly on a variety of mobile devices, anytime, anywhere.

Banking Vietnam 2019 had seminars and exhibitions introducing new achievements in digital technology and the application of digital technology in banking operations, aimed at expanding access to banking services and improving the availability and utility of banking services in Vietnam.

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