Cashless payments are here to stay | Business

A buyer uses VietQR, a cashless payment method developed by Napas. (Photo courtesy of Napas)

Hanoi (VNS/VNA) – Cashless payments have become the norm in many countries in recent years, bringing great benefits to individuals in the payment process.

The remark was made by newspaper editor Tien Phong Le Xuan Son during a webinar on digital payments on April 13.

Son pointed to the pandemic as a key factor driving non-cash payments in Vietnam over the past two years.

Banks have turned to these payment methods and have had great success.

To further promote digital transformation in the banking systemhe called for an enabling environment and the right technology infrastructure to encourage more customers to change their payment habits.

“Cashless payments are new payment methods. Unfortunately, the majority of Vietnamese people still do not have access to technology,” he said.

Le Van Tuyen, deputy director of the payment department of the State Bank of Vietnam, revealed that the government project on cashless payments in Vietnam between 2021 and 2025 has four major objectives.

Initially, the project aims to non-cash payments a standard in urban areas and extend their coverage in rural areas.

Second, it seeks to develop a safe cashless payment infrastructure with various amenities and facilities to meet the growing demand from businesses and individuals.

Third, it strives to improve the security and transparency of cashless payments, allowing authorities to better monitor economic transactions in the country.

Finally, it aims to achieve the growth targets set for non-cash payments in the short term, including 50% of transactions on e-commerce platforms via cashless payments and economic transactions via smartphones growing 50 to 80% per year.

Nguyen Quang Minh, deputy general manager of National Payment Services Corp. (Napas), noted that his company has developed various financial solutions to promote cashless payments in Vietnam.

In particular, it introduced multi-purpose smart cards compatible with applications in different fields, including health and insurance, allowing cardholders to easily make payments in these fields.

However, he also admitted that current payment acceptance networks are insufficient to meet the demand of a market of almost 100 million people.

“For this reason, Napas, banks and financial intermediaries will cooperate to expand payment acceptance networks in the near future,” he added.

Pham Thi Mai Anh, director of Military Bank’s Digital Banking Service Center, said her bank was the first to cooperate with Napas in rolling out QR code payments, including VietQR.

“We continue to promote VietQR to sellers in local markets to expand its coverage,” she added.

The director also revealed that her bank’s virtual cards would target young people, who are driving the growth of digital payments.

Hoang Xuan Que, director of the Institute of Finance and Banking at National Economic University, pointed out that non-cash payments are an inevitable global trend and Vietnam is no exception.

In the near future, cashless payments will evolve at a faster rate thanks to better technological infrastructure and cheaper smartphones.

“Many Vietnamese families have opted for cashless payments to pay their bills and their children’s school fees. This indicates that it is time to scale up non-cash payments in the country,” he added.

The director also predicted that 100% of undergraduate students will switch to smart cards in the near future and their payment habits will affect their families, attracting more customers to the new payment methods./.


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