Vietnamese shoppers prefer cashless payments

Transactions via mobile devices recorded a year-on-year surge of 198% in volume and 210% in value last year.

Vietnamese shoppers prefer using cashless payment as e-payments via internet in 2019 jumped 64% in number of transactions and 37% in value compared to 2018, according to the latest report from the State Bank of Vietnam (SBV).

 Transactions via mobile devices are increasing. Photo: Tinhte

Statistics from the SBV showed that cashless payments grew robustly in 2019, of which, mobile payments recorded a year-on-year surge of 198% in volume and 210% in value. 

In 2018, the inter-banking e-payment system safely processed transactions worth VND73,000 trillion (US$3.13 trillion), averaging US$13 billion transacted per day and up 25% year-on-year, while the transaction value through mobile payment grew 169.5% year-on-year.

According to the SBV, there are currently 127 providers of payment services via internet and mobile devices. As of May, 34 non-bank organizations have been granted licenses to provide intermediary payment services.

In particular, the transaction structure through National Payment Joint Stock Company (NAPAS) system has a strong shift from ATM transactions to inter-bank switching. The proportion of ATM transactions accounted for 62% in 2018 and 42% in 2019, while the share of inter-bank payment transactions increased to 48% in 2019 from 26% in 2018.

 Source: SBV. Chart: Nhat Minh

In the first three months of 2020, the total transaction value through the inter-bank e-payment system surged by 21% against the same period last year.

From April 1 to 20, average transaction value through the system grew 8.85% inter-annually despite the social distancing order. To deal with the spread of the Covid-19 pandemic, many banks and telecom carriers in Vietnam have integrated e-stores and grocery chains into their payment platforms to help Vietnamese people shop online while staying at home.

 

The local shoppers are also using online payment platforms for bills and public services payment. Particularly, 27 banks and 10 intermediary payment service providers have coordinated with each other to collect electricity bill payment for EVN. So far, bill amount collected by the corporation through banks accounted for nearly 90% of the total revenue.

Thirty hospitals in some cities and provinces have deployed electronic fee payment. So far, non-cash fee payment transactions in some hospitals have reached 35%.

In the first three months this year, total transactions through NAPAS system increased 81.3% in volume and 145.3% in value compared to the same period of 2019.

Local consumers and businesses have also benefited from the SBV’s policy on reducing fees for money transfers, which aims to support local companies to overcome difficulties caused by the Covid-19 pandemic and encourage cashless payments.

Statistics from NAPAS showed that 39 out of its 45 banking members have cut fees for customers by 90% and some offered zero charges for fast inter-bank fund transfers of sums worth less than VND2 million (US$85) from February. The program will be valid until the end of this year. Hanoitimes

Nhat Minh-Thao Nguyen

Cashless ecosystem now on the cards

Cashless ecosystem now on the cards

As Vietnam heads towards a cashless economy and mobile technology is becoming ubiquitous, the adoption of mobile money next month is predicted to lure local and foreign firms into joining the game.

Vietnamese take increasingly to cashless payments

Vietnamese take increasingly to cashless payments

Non-cash payments have increased sharply, especially through mobile devices and the internet, according to the State Bank of Vietnam.

 
 

Other News

.
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
BUSINESSicon  03/07/2020 

Chubb Life Vietnam has been recognized as one of the “Best Companies to Work for in Asia 2020” by HR Asia, the continent’s leading publication for Human Resources professionals.

Predatory debt collectors hustling on borrowed time
Predatory debt collectors hustling on borrowed time
BUSINESSicon  02/07/2020 

Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.

RCEP benefits on horizon for ASEAN
RCEP benefits on horizon for ASEAN
FEATUREicon  02/07/2020 

With the Regional Comprehensive Economic Partnership scheduled to be signed this November, doors will soon open to attract more investment and swell Vietnam’s trade with international partners.

An abundance of advantages to diversify ops into Vietnam
An abundance of advantages to diversify ops into Vietnam
BUSINESSicon  02/07/2020 

Amidst the new wave of foreign investment and relocation after the pandemic, director general of the Foreign Investment Agency Do Nhat Hoang explained Vietnam’s outstanding advantages and how it can seize arising opportunities.

Vietnam closes in on tech app tax avoiders
Vietnam closes in on tech app tax avoiders
BUSINESSicon  02/07/2020 

Apple and Google are once again under fire over tax avoidance in Vietnam, with none of their revenues from their app markets being retained in the country. However, a new law could soon enable local authorities to take their cut.

Drugmakers fight to attain approval
Drugmakers fight to attain approval
BUSINESSicon  02/07/2020 

Switzerland’s drug maker Novartis Pharma Services AG has announced a GMP qualification for Lek Pharmaceuticals d.d. within the scope of certification for medicines in Vietnam,

PouYuen lays off thousands  due to Covid-19 difficulties
PouYuen lays off thousands due to Covid-19 difficulties
BUSINESSicon  02/07/2020 

More than 6,000 workers of the Taiwanese company, PouYuen, in HCM City have been laid off due to the company's business difficulties during the Covid-19 pandemic.

Fitch Solutions revises up Viet Nam’s 2020 GDP growth
Fitch Solutions revises up Viet Nam’s 2020 GDP growth
BUSINESSicon  02/07/2020 

Fitch Solutions have revised up its 2020 real GDP growth forecast for Viet Nam slightly to 3.0 per cent, from 2.8 per cent previously.

Zalo Bank not licensed by SBV and MoIT
Zalo Bank not licensed by SBV and MoIT
BUSINESSicon  02/07/2020 

The State Bank of Vietnam (SBV) and the Ministry of Industry and Trade have affirmed that they have not licensed Zalo Bank to provide online built-in financial services.

EVFTA to come into effect in a month
EVFTA to come into effect in a month
BUSINESSicon  02/07/2020 

The EVFTA will abolish 65 per cent of the duties on EU exports to its developing partner, with the remainder phased out over a 10-year period.

Footwear sector to improve supply chain to take advantage of EVFTA
Footwear sector to improve supply chain to take advantage of EVFTA
BUSINESSicon  02/07/2020 

Vietnam’s leather and footwear industry should improve its supply chain performance to take advantage of the milestone trade deal that Vietnam has signed with the EU and to recover from the effects of the COVID-19 crisis, 

World Bank Vietnam has new head
World Bank Vietnam has new head
BUSINESSicon  02/07/2020 

From July 1, Ms. Carolyn Turk will work at the World Bank (WB) Hanoi office as its country director in Vietnam, according to the office.

China maintains position as Vietnam's largest import market
China maintains position as Vietnam's largest import market
VIDEOicon  02/07/2020 

Despite the first half of the year seeing Vietnamese export turnover to China only reaching a mere US$34.8 billion, China retained its place as the country’s largest import market, according to the General Statistics Office.

VN's rice exports bounce back after one-month interruption
VN's rice exports bounce back after one-month interruption
BUSINESSicon  03/07/2020 

While exports of many products have plunged because of Covid-19, rice exports are growing, with prices of some products reaching an 8-year high.

Will demand for corporate bonds become weaker because of a new law?
Will demand for corporate bonds become weaker because of a new law?
BUSINESSicon  02/07/2020 

Under the amended Enterprise Law ratified by the National Assembly on June 17, nonprofessional investors are prohibited from trading corporate bonds issued in private offerings from January 1, 2021.

Retail industry to face being "swallowed" once EVFTA comes into force
Retail industry to face being "swallowed" once EVFTA comes into force
BUSINESSicon  02/07/2020 

With the implementation of the EU-Vietnam Free Trade Agreement looming, besides providing opportunities, the Vietnamese retail market is anticipated to face numerous challenges, 

Vietnam sees greater budget transparency
Vietnam sees greater budget transparency
BUSINESSicon  01/07/2020 

Vietnam’s Open Budget Index (OBI) increased rapidly in 2019 compared to 2018, according to a survey released on July 1.

Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
BUSINESSicon  01/07/2020 

The Vietnamese Government has made bold and reasonable decisions to fight against the COVID-19 pandemic and be proactive with comprehensive initiatives for economic recovery.

Administrative reforms would help unlock EVFTA's potential: EuroCham
Administrative reforms would help unlock EVFTA's potential: EuroCham
BUSINESSicon  01/07/2020 

 Administrative procedure reform is the key to unlocking the full potential of the Europe-Viet Nam Free Trade Agreement (EVFTA), said participants at a conference on Tuesday.

Nation’s economic forecast leads way
Nation’s economic forecast leads way
BUSINESSicon  01/07/2020 

With its success in fighting COVID-19, Vietnam has continued to be the best performer in Southeast Asia, laying a firm foundation for the country to attract more investment and spur on production.

 
 
 
Leave your comment on an article

OR QUICK LOGIN