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Mobile payments increased by more than 125% in value

24/12/2020

Connecting with other digital ecosystems on information technology platforms has resulted in a remarkable growth in the number and value of banking transactions through digital channels of many Vietnamese banks.

Providing information at the press conference on banking performance in 2020 and orientations for 2021, Mr. Pham Tien Dung - Director of Payment Department (State Bank) said that payment activities this year have recorded strong growth.

As of the end of October 2020, the number of payment transactions via mobile phones reached more than 918.8 million transactions with a value of nearly VND 9.6 million billion (an increase of 123.9% in volume and 125.4% in value over the same period in 2019); the number of payment transactions via the Internet reached nearly 374 million transactions with a value of more than 22.2 million billion (an increase of 8.3% in volume and 25.5% in transaction value over the same period in 2019).

The total number of transactions via the interbank electronic payment system reached more than 119 million items, worth nearly VND 84.3 million (an increase of 7.3% in value over the same period in 2019). The electronic financial switching and clearing system processed 960.95 million items with nearly VND 8 million billion (an increase of 75.19% in quantity and 110.92% in value over the same period in 2019).

Also according to Mr. Dung, the automatic electronic clearing system for retail transactions was officially put into operation from the beginning of July 2020 and the banking system has completed connection to National Public Service Portal allowing the online payment of fees, charges, taxes and other financial obligations by a variety of payment methods.

Mr. Dung emphasized that the year 2020 has seen many credit institutions actively apply modern technology such as cloud computing, data analysis, big data, robotic process automation, artificial intelligence/machine learning, Blockchain, eKYC, etc. in professional activities and providing products and services to improve operational efficiency and increase customer experience. Connecting with other digital ecosystems on information technology platforms has resulted in a remarkable growth in the number and value of banking transactions through digital channels of many Vietnamese banks.

As for interbank money transfer fees via 24/7 NAPAS system, 100% of banks have participated in implementing the policy of fee exemption/reduction for customers for small value transactions (from 2 million dong or less). Accordingly, about 63% of customers' payment transactions via NAPAS are with fees exempted or reduced. It is estimated that the total amount of payment service fees that banks will exempt or reduce for customers by the end of 2020 after 2 fee reductions is about VND 1,004 billion.

At the same time, 100% of credit institutions provide free of charge services for electronic payment transactions, public service transactions; money transfer to support Covid-19 prevention and control and salt drought, and for payment services for beneficiaries under Resolution No. 42 and Decision No. 15 of the Prime Minister.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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