How will mobile money affect e-wallets?

Non-cash payment activities have developed strongly in recent years with many payment services such as digital banks and e-wallets.

A new trend is payment services on mobile devices, which is called mobile money. — Photo vietnamplus.vn

A new trend of developing payment services on mobile devices, called mobile money, is also being implemented.

Many economists have said that competition between e-wallets and mobile money might not happen as each payment method has different goals and market share.

Economist Can Van Luc said customers of each payment method were quite different.

Mobile money will mainly focus on those who already have phone numbers. The customers of this payment method are everywhere including in rural, urban, remote and mountainous areas.

Mobile money and e-wallets have the same purpose of creating a community which uses cashless payment.

However, mobile money helps people using mobile accounts to transfer money and pay goods with small value quickly, so its payments have limited value compared to e-wallets.

On the flipside, economist Nguyen Tri Hieu thinks mobile money will soon compete with e-wallets.

Mobile money was a form similar to e-wallets, he said. With mobile money, people can open an account on a mobile phone for non-cash payment without bank accounts.

The economist assessed that mobile money would be especially helpful in remote areas, where people did not have bank accounts.

The Payment Department under the State Bank of Viet Nam (SBV) said the mobile money pilot project was being built with an estimated payment limit of VND10 million per month (US$430) for an identified account.

 

Meanwhile, in accordance with Circular 23/2019/TT-NHNN, the total limit of transactions via a personal e-wallet of one customer was up to VND100 million per month.

Statistics of the department also showed payments via mobile phone channels including mobile banking and e-wallets as of the end of April increased by 189 per cent in volume and 166.1 per cent in value compared to the same period last year.

By the end of 2018, as many as 90 countries were accepting mobile money with up to 900 million users.

The transaction value reached $1.3 billion a day with an annual growth rate of 20 per cent.

In Asia, the growth rate was 31 per cent. In many countries, half of the population uses mobile money.

In Viet Nam, Prime Minister Nguyen Xuan Phuc recently approved the mobile money pilot project, allowing the use of telecommunication accounts to pay for small-value goods and services.

The State Bank is also seeking comments for a draft decree regulating non-cash payments which would allow mobile money users not to link with bank accounts but be able to top-up or withdraw cash directly at telecommunication stores.

Telecommunication businesses such as Viettel, MobiFone and VNPT have said they were ready to prepare all necessary conditions to provide mobile money services as soon as it was licensed. — VNS

Ministry considers allowing bets via e-wallets, telecommunications accounts

Ministry considers allowing bets via e-wallets, telecommunications accounts

The Ministry of Finance is drafting an amendment to the decree on business of betting on horse racing, greyhound racing and international football, which would allow the payment of bets via e-wallets or mobile accounts.  

E-wallets owners must complete the identity verification before July 7

E-wallets owners must complete the identity verification before July 7

Deputy Governor of the State Bank of Vietnam Dao Minh Tu has said July 7 is the deadline for e-wallet owners to complete the identity verification.

 
 

Other News

.
Vietnam’s bond market posts highest growth in emerging East Asia: ADB
Vietnam’s bond market posts highest growth in emerging East Asia: ADB
BUSINESSicon  07/07/2020 

The local currency (LCY) bond market in Vietnam posted the highest growth in the emerging East Asia region, as authorities took fiscal and monetary policy actions to mitigate the economic fallout from the coronavirus pandemic.

China is largest plywood investor in Vietnam
China is largest plywood investor in Vietnam
BUSINESSicon  07/07/2020 

China has invested in 29 plywood projects worth over US$150 million in Vietnam, becoming the country’s largest plywood investor, according to Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association.

Customs authority discovers multiple cases of origin fraud
Customs authority discovers multiple cases of origin fraud
BUSINESSicon  07/07/2020 

Country of origin fraud cases, wherein Chinese products bear Made-in-Vietnam labels, are on the rise, with Vietnam’s customs authority recently inspecting 76 cases

Thai firm buys two wind power farms in Vietnam
Thai firm buys two wind power farms in Vietnam
BUSINESSicon  07/07/2020 

The move aims to take advantage of low interest rates to build projects with a quick return on investment.

FIEs displeased with government demand to license internal websites
FIEs displeased with government demand to license internal websites
BUSINESSicon  07/07/2020 

The new regulations of the MIC may affect the policies and assets of private businesses and foreign-invested enterprises in Vietnam.

Amended law alters funding landscape
Amended law alters funding landscape
BUSINESSicon  07/07/2020 

The Vietnamese National Assembly has adopted the new Law on Investment, with new rules in favour of foreign investment, including from the US, which is expected to surge in Vietnam in the time to come.

New investment wave starts despite COVID-19
New investment wave starts despite COVID-19
BUSINESSicon  07/07/2020 

The new wave of foreign investment triggered by COVID-19 and US-China trade tensions is becoming more visible as outstanding overseas ventures are expanded.

Stronger money policies might be considered to aid economic growth: SBV
Stronger money policies might be considered to aid economic growth: SBV
BUSINESSicon  07/07/2020 

The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.

Guiding decrees needed to fight with transfer pricing in Vietnam
Guiding decrees needed to fight with transfer pricing in Vietnam
BUSINESSicon  07/07/2020 

Anti-transfer pricing measures were included in the Law on Tax Administration for the first time, but a guiding decree has not yet been written. Experts said this could mean the rules are less effective.

VN corporate bond market to boom in second half
VN corporate bond market to boom in second half
BUSINESSicon  07/07/2020 

Companies are looking to raise debts from bond issuance before the amended Law on Securities takes effect next January.

Moving from former adversaries to trusting and valued partners
Moving from former adversaries to trusting and valued partners
BUSINESSicon  07/07/2020 

Through candid dialogue, mutual respect, and a strong commitment to succeed by the leadership of both countries, Vietnam and the United States created a comprehensive partnership that identifies areas for both countries to work together.

EVFTA expected to give a lift to real estate sector
EVFTA expected to give a lift to real estate sector
BUSINESSicon  06/07/2020 

Many segments of the real estate market are soon expected to benefit from the EU-Vietnam Free Trade Agreement, which takes effect in August.

Whether Apple to build nest in Vietnam?
Whether Apple to build nest in Vietnam?
BUSINESSicon  07/07/2020 

Foxconn’s rush expansion in Vietnam raise nosy that whether Apple will choose the country as the place to build nest.

American groups make progress across Vietnam
American groups make progress across Vietnam
BUSINESSicon  06/07/2020 

Vietnam, as one of the fastest-growing economies in the ASEAN bloc, is becoming more appealing to American investors.

A dynamic and powerful ASEAN from the German perspective
A dynamic and powerful ASEAN from the German perspective
BUSINESSicon  06/07/2020 

Possessing key features that represent a snapshot of one of the most diverse, fastest-growing, and competitive regions, the ASEAN is an attractive economic region for not only German enterprises but also other European ones to invest in. 

Delving into specifics of amended business laws
Delving into specifics of amended business laws
BUSINESSicon  06/07/2020 

Businesses and investors are expected to access new positive changes when the amended Law on Investment and the amended Law on Enterprises take effect from January 1 next year.

Rays of sunshine in aviation clouds
Rays of sunshine in aviation clouds
BUSINESSicon  06/07/2020 

Amid serious impacts of COVID-19, there are hopeful points for the aviation sector on the back of the EU-Vietnam Free Trade Agreement.

Trade kickstart with distinctive solutions
Trade kickstart with distinctive solutions
BUSINESSicon  06/07/2020 

Vietnam is boosting its diplomatic activities in hope of attracting more investment and expanding its trade in the global market, with many of the country’s major partners about to open their doors to the world again.

EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
EuroCham proposes Gov’t to cut 50 per cent of registration fee for imported cars
BUSINESSicon  06/07/2020 

The European Chamber of Commerce in Vietnam (EuroCham) proposed the Government to apply the 50 percent registration fee reduction to all automotive assembly firms, importers and dealers of new vehicles.

Shares to correct amid lack of positive news
Shares to correct amid lack of positive news
BUSINESSicon  06/07/2020 

The benchmark VN-Index on the Ho Ch Minh Stock Exchange (HoSE) gained 0.62 per cent to close Friday at 847.61 points.

 
 
 
Leave your comment on an article

OR QUICK LOGIN