The Government has urged the use of non-cash payments and the deployment of Mobile Money as a solution. The service is still awaiting licensing.
The pilot program on providing the Mobile Money service is expected to increase non-cash transactions, especially in remote areas. To improve users' experience, fintechs should work with network operators, experts say.
With Mobile Money, people in mountainous areas or islands can remit money and make payments for goods and services through SMS on their mobile phones.
Mobile Money on a trial basis will create a precedent for applying the sandbox mechanism to other services and new professions to appear in digital society.
Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.
Non-cash payments continue to boom in Vietnam this year as the country has seen a surge in banking transactions and mobile payments in the first four months of the year, according to an official from the State Bank of Vietnam (SBV).
Many eateries have stopped serving offline and shifted to selling online during the Covid-19 pandemic.
If Tiki and Sendo successfully carry out the merger, the Vietnamese e-commerce market will be the playing field for three major players. Two of them, Lazada and Shopee, are foreign invested.
The State Bank of Vietnam (SBV) plans to set no limit on foreign ownership in fintechs.
A deputy governor of the State Bank of Vietnam has advised residents to limit the use of cash for payments and make more online transactions instead to prevent the spread of the Wuhan coronavirus, the local media reported.
The government decree on non-cash payment, once promulgated, will pave the way for mobile money to develop in Vietnam.
As of present, just 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34).
E-wallet firm MoMo launched a cashback programme on November 3 with value of up to 100,000 VND (4.30 USD) per transaction and for four transactions daily at most.