Banks pick up the trend, cashless payment thrives

The COVID-19 epidemic has accelerated the transition of people's non-cash payment behavior. This shift has continued to be maintained after the pandemic, and has grown even more as banks have grasped the trend, actively deployed modern services and technologies, with many incentive programs.

Exploding new and modern payment services

According to the Statistics of the Payment Department - State Bank of Vietnam (SBV): In 2022, non-cash payment services and means, especially new and modern payment services.

The indicators of commerce continued to grow strongly, the implementation of electronic payment services via the Internet and mobile phones has achieved impressive results, attracting a large number of service customers as well as as the number and value of transactions increased. In the first 11 months of 2022 compared to the first 11 months of 2021, E-commerce transactions increased by 85.6% in quantity and 31.39% in value; via Internet channel increased 89.36% in quantity and 40.55% in value; via mobile phone channel increased by 116.1% in volume and 92.3% in value; via QR code method increased 182.5% in quantity and 210.6% in value...

Dinh Van Chien - Deputy General Director cum Head of Personal Banking Division of Tien Phong Bank (TPBank) said that TPBank chose to launch a collection of 5 personal features. including: Payment by face (Facepay), easy money transfer such as chat (Chatpay), payment by voice (Voicepay), account using Nickname, customizable widgets interface according to preferences (MeZone)... on TPBank's app.

This bank has cooperated with the National Payment Corporation of Vietnam (NAPAS) to successfully integrate the automatic clearing system - Automated Clearing House in fast interbank money transfer at the delivery counter. translated and integrated into TPBank app. This feature helps customers to perform real-time fast money transfer, phone number identification, automatic payment of public services such as fees, taxes, payment request services, etc., smoothly 24/7. , save time and be notified immediately of the results...

TPBank builds e-banking applications eBankX for individual customers, eBankBiz for corporate customers. On all these platforms, TPBank applies supporting technologies for users such as: Successfully applying T'Aio virtual assistant (chatbot) with AI artificial intelligence and Machine Learning technology, assistant Chatbot virtual manager on digital communication channels has supported to answer up to 80% of customer requests with 24/7 standing mechanism and immediate response...

Mr. Phung Duy Khuong, Permanent Deputy General Director in charge of the Southern region, cum Head of Personal Banking Division (VPBank) said: Responding to the Government's policy on shopping malls in recent years, VPBank has pushed strengthen investment activities and develop digital banking, deploy many modern digital banking applications. Specifically, the VPBank NEO digital banking application is a Super App of VPBank that fully meets the needs of customers, from depositing, paying, opening credit cards and borrowing 100% digitally. The number of transactions via VPBank NEO in 2022 increased sharply. Along with that, the rate of online term deposit mobilization on this digital platform reached 71%, an increase of 15% compared to the end of 2021.

And Mr. Nguyen Minh Tam, Deputy General Director of Sacombank shared: Sacombank recognized and anticipated this trend very early and has invested heavily in technical infrastructure to provide modern and beneficial products and services. practical benefits for individual customers and businesses (enterprises). For example, there are online authentication technology (eKYC), account opening, non-physical card opening 100% online in just a few steps, touch payment technology by phone, ... or Tap to technology phone – mobile contactless payment acceptance technology that allows merchants to use a mobile phone or tablet as a POS device for contactless payments.

Perfecting the ecosystem, expanding coverage to remote areas

Emphasizing the importance of the legal framework, Mr. Phung Duy Khuong, Deputy General Director of VPBank said: VPBank in particular needs to further improve the ecosystem of digital financial products, services and solutions. Therefore, VPBank's representative recommended the state management agency to promulgate appropriate mechanisms, policies and legal corridors, so that banks can deploy online financial products, services and solutions. conveniently online. It is necessary to consider the recognition of digital signatures for home loan transactions, car purchases, or legalization of online identification (eKYC) and video calls, in case of disputes and litigation between the two parties.

From the perspective of the Banking Association, Mr. Nguyen Minh Tam, Vice Chairman of the Card Branch, Banking Association (concurrently Deputy General Director of Sacombank) said: "Although the method of TM has achieved great achievements, but This boom is still mainly concentrated in urban areas. Meanwhile, in rural and remote areas with many potentials are still open, more than 90% of transactions here are still money transactions. There are no ATMs to withdraw money when needed, no machines to accept cards for transactions, not many banks invest heavily in card-accepting infrastructure because of high costs and low profit margins. Vietnam's population reaches nearly 100 million people, but the percentage of POS and mPOS machines is only over 400,000.

Rural areas, remote areas with many potentials are still open, more than 90% of transactions here are still cash transactions and people do not have ATMs to withdraw money when needed, no machines to accept cards. to transaction

This figure shows that the development of the network of card acceptance is very limited, serving only 30% of the actual demand compared to the total demand of the country up to 1.2 million devices. In addition, changing the habit of using cash is also difficult, when people are still doubting the safety of new technologies because of the increasing and sophisticated fraud in electronic payments. than. According to research by Mastercard, nearly 80% of users are willing to use new payment technology if they feel they are safe.

According to research results of Visa card organization, Vietnamese users have had a clear change in payment habits, specifically 76% of users have used e-wallets and 82% have used cards. 50% have started using cards more often, while 64% have increased their usage of contactless payments. According to statistics from the Vietnam Bankers Association, the total number of cards in circulation reached nearly 130 million cards by the end of June 2022, an increase of nearly 20% over the same period, of which the growth rate of new cards reached 50 million. %.

In order to promote the CTM in Vietnam, Mr. Nguyen Minh Tam said that joining hands is extremely necessary. Banks and financial companies need to pay more attention to investment and expansion of card acceptance networks in rural and remote areas so that people have places to use; build more activities to experience new payment methods, attractive promotions to attract the attention and attention of the community. Banks and financial companies also need to diversify methods of cooperation, build an open banking ecosystem, serve multi-channel user needs.

Public administrative units need to be more drastic in the application of cashless payment technology, willing to share fees to create motivation for banks in developing the payment ecosystem.

"It is important that the banking industry continue to promote communication of the benefits and safety of the CBA, and at the same time improve the legal framework and risk control mechanism, especially the issuance of guiding documents. Sharing industry data, Open API standards to open up a new future for the banking industry is the Open Banking ecosystem," emphasized Mr. Nguyen Minh Tam.