Cashless services explode in Vietnam
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Vietnam’s central bank says the value of cashless transactions more than doubled over the first three quarters of 2018. The Department of Payments at the State Bank of Vietnam reported a strong rise in payments over electronic channels between January and September, compared to the same period last year. Accordingly, the value of online payments rose by 18.3 percent, while transactions over mobile apps and e-wallets rose by 126 percent and 161 percent respectively.
The number of transactions over Internet, mobile and e-wallet channels also rose 33 percent, 30 percent and 28 percent respectively.
“Mobile payment is becoming a new trend with the rise of technologies such as QR codes, contact and contactless payments, and the tokenization of card information,” said Nghiem Thanh Son, deputy director of the department.
The first months of 2018 saw the number of users and the value of transactions through electronic channels such as online, mobile and e-wallets rocket at many banks.
At Sacombank, statistics show that as of October, the number of registrations for online banking reached over 1.3 million accounts and for mobile banking 1.1 million accounts. The total value of transactions per month through both channels exceeded VND108 trillion ($4.63 billion).
For VietinBank, the country’s second largest lender by assets, the number of internet banking users in the first half of this year surged 114 percent over the same period last year to a total of 1.5 million accounts and VND44.26 trillion ($1.90 billion) in total transaction value.
Its mobile banking users also reached 1.5 million, engaging in transactions totalling VND64.35 trillion ($2.76 billion) between January and June.
Over 7 million people are using digital services provided by MBBank. The average transaction value per month reached VND27.4 trillion ($1.17 billion), with digital transactions making up approximately 2.6 million out of 3 million total monthly transactions seen at this bank.
Nguyen Hoang Minh, deputy director of the State Bank’s HCMC branch, noted that the number of online banking customers has seen average annual increase of 20 percent in recent years.
Minh said that in order to continue developing non-cash payment channels, credit institutions should pay attention to linking their cashless systems with the public sector, specifically in areas like health, education, payroll and utilities.
Cashless services should also expand to include online payment options for public services like buses, trains and other smart urban solutions, he said.
Questions & Answers
Q.What specific types of electronic payments saw the most significant growth in value?
What specific types of electronic payments saw the most significant growth in value?
Transactions via mobile apps and e-wallets experienced substantial growth, rising by 126 percent and 161 percent respectively. Online payments also increased, but at a more modest 18.3 percent.
Q.How did the number of users for digital banking services grow at specific banks mentioned?
How did the number of users for digital banking services grow at specific banks mentioned?
VietinBank's internet banking users surged by 114 percent to 1.5 million accounts in the first half of the year. MBBank reported over 7 million people are using its digital services.
Q.What recommendations were made for further developing non-cash payment channels in Vietnam?
What recommendations were made for further developing non-cash payment channels in Vietnam?
Credit institutions should integrate their cashless systems with the public sector, including health, education, payroll, and utilities. Cashless options for public services like buses and trains were also suggested.
Q.Which technology was specifically highlighted as contributing to the trend of mobile payments?
Which technology was specifically highlighted as contributing to the trend of mobile payments?
QR codes, contact and contactless payment methods, and the tokenization of card information were all cited as technologies contributing to the rise of mobile payments as a new trend.
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