The State Bank of Vietnam (SBV) said it is nearing completion of the Project on Development of Non-Cash Payments for the 2021-2025 period. The banking industry also promotes connection with the Ministry of Public Security to take advantage of the citizen database to support the implementation of electronic payment applications. This is one of many activities of the state agency to promote non-cash payments in the upcoming period.

According to data from the State Bank of Vietnam, to date, the whole country has over 79 payment service providers deploying payments via the Internet and 44 payment organizations via mobile phones.

In the first four months of 2021, electronic payments via the Internet, mobile phones, QR Code achieved remarkable results, attracting a large number of customers to use. Compared to the first four months of 2020, payment transactions via the Internet increased by 65.9% in volume and 31.2% in value; transactions via mobile phone channel increased by 86.3% in volume and 123.1% in value, respectively; transactions via QR Code channel increased by 95.7% in volume, 181.5% in value respectively.

Pham Tien Dung, Director of the Payment Department under the SBV, said that in June, the agency focused on perfecting the legal framework to meet the requirements for new business models and products and services based on technology. In particular, focusing on implementing new regulations on non-cash payments and developing a Decree on Controlled Testing Mechanism for Financial Technology (Fintech) activities in the banking sector.

The State Bank is coordinating with ministries and branches to finalize and submit to the Prime Minister for promulgation the Project on Development of Non-Cash Payments for the 2021-2025 period, synchronously implementing the solutions mentioned in the Project; coordinating with relevant ministries and sectors to pilot the use of telecommunications accounts to pay for goods and services of small value (Mobile-money).

Simultaneously, implementing the Plan for digital transformation of the banking industry by 2025, with a vision to 2030 in order to help banks and payment intermediary organizations provide safe, secure and convenient payment products and services to meet the increasing demands of customers in the digital era; strengthen the assurance of security and safety of the information technology system in the banking industry; protect the legitimate interests of customers; promote financial communication and education in order to improve knowledge, skills, and accessibility to financial and banking services to the public, contributing to promoting non-cash payments and financial inclusion.

Regarding digital customer identification (eKyc) – “gateway” to carry out digital transformation of the banking industry, according to Mr. Dung, Circular No. 16/2020/TT-NHNN (effective from 5/3/2021) supplement regulations and guidelines on opening payment accounts by electronic method, ensuring consistency in the implementation process. Since its implementation, about 340 thousand new bank accounts have been opened with eKyc.

Kylie Nguyen