The State Bank of Vietnam (SBV) has removed a regulation capping foreign ownership at 49% for local payment intermediaries from a draft decree on noncash transactions.
A woman scans a QR code for payment. A regulation capping foreign ownership at 49% for payment intermediaries has been removed from a draft decree on noncash payments
The draft decree, replacing Decree 101/2012/ND-CP, has received the attention of both local and foreign individuals and organizations, as it includes long-awaited regulations, the local media reported.
However, some have said that the foreign ownership cap, if applied, would negatively affect the attraction of foreign investment to the payment-intermediary sector and the fintech sector as a whole.
In addition, some large payment intermediaries have been approved for foreign ownership of more than 49%, so the proposal may affect the operation of these firms.
According to Nghiem Thanh Son, deputy head of the SBV’s Payment Department, the country currently has 27 e-wallet service providers, but more than 90% of the market share is held by the five largest ones. The five firms have foreign ownerships of 30%-90%.
For example, the foreign ownership in Online Mobile Services JSC, the operator of Momo e-wallet, is 66%, according to the Ministry of Planning and Investment.
The regulation was removed from the draft decree after the SBV consulted with experts and the relevant agencies, studied Vietnam’s international commitments and analyzed the possible impact of the regulation. SGT
An economics expert has said e-wallet firms are breaking out promotions to try and win large chunks of the high potential market in Vietnam.