The 7 banks involved in the scheme are Vietcombank, Vietinbank, BIDV, Agribank, Sacombank, TPBank and ABBank.
Deputy Governor of the State Bank of Vietnam Nguyen Kim Anh said the switch from magnetic strip cards to chip cards is one of the key solutions to promote non-cash payment.
He noted that this is also an inevitable trend in the region and the world in the context of rising hi-tech crimes.
Vietnam currently has about 76 million cards issued by 48 banks. The chip cards are believed to help reduce risks on card-related crimes and increase payment safety for customers.
The SBV plans to have at least 30 percent of active cards in the country meeting the domestic chip card standards by the end of 2020. The number will rise to 60 percent by the end of 2021 and 100 percent by the end of 2022. VNA/VNN
Commercial banks in Vietnam will initially replace some 21 million magnetic ATM cards with chip cards beginning May 28, as the State Bank of Vietnam (SBV) has ordered issuing banks to convert their 75 million ATM cards to new chip cards.
Both domestic and foreign banks are offering preferential programmes to lure more credit card holders to compete for a larger market and a piece of the high profits generated by the credit card segment.
The National Payment Corporation of Viet Nam (NAPAS) has announced a fee reduction for its local switching system services with an aim to encourage banks replacing their current magnetic strip ATM cards with chip cards ahead of schedule.