High transaction fees, concerns over security and the habit of using cash have hindered local consumers from making noncash payments, Nguoi Lao Dong newspaper reported, citing banking experts.

A customer is making a noncash payment at a restaurant in HCMC

At a seminar on noncash payments held by the State Bank of Vietnam (SB

V) and Tuoi Tre newspaper today, January 15, SBV Deputy Governor Nguyen Kim Anh said the promotion of noncash payments is indispensable due to their considerable benefits for consumers. With noncash payments, transactions are conducted quickly and conveniently.

Last year, 137.6 million online transactions were conducted. As many as 76 banks have offered Internet Banking services and 41 have mobile payment services, Anh added.

According to Pham Tien Dung, director of SBV’s Payment Department, as of September last year, the country had 18,170 automatic teller machines (ATMs) and 294,500 points of sale. More than 101 million bank cards have been issued.

By mid-2018, the country had over 43 million bank account holders, accounting for more than 60% of Vietnamese people aged 15 and up.

Nevertheless, noncash payments remain unpopular, especially in rural areas. Facilities for noncash payments are mainly invested in cities, Dung noted.

At the seminar, representatives of banks and enterprises shared the view that consumers do not want to pay transaction fees.

To deal with these hindrances, the central bank will promote modern noncash payments for public services.

Regarding the security of online transactions, Le Manh Hung, director of the Information Technology Department under SBV, pointed out that many credit institutions have applied international standards for security.

To ensure the safety of online transactions and convenience for customers, multiple banks have launched new verification methods, using customers’ fingerprints, voice and digital signatures or quick response codes.

In addition, SBV will apply international standards to assess the security at local banks and intermediaries and will encourage them to swiftly apply solutions on security to online payments as well as replace ATM magnetic cards with chip-based ones.

Commercial banks must also equip e-transaction supervision systems, establish criteria to identify whether transactions are legal and develop cybersecurity centers to prevent fraud and cyber attacks, Hung added.

SGT