Non-cash payments have recorded positive changes
The pandemic is gradually changing the cash payment habit of consumers. Accordingly, electronic payment activities also recorded positive changes.
The data of the State Bank of Vietnam (SBV) shows that the average transaction value via the interbank electronic payment system in the first 20 days of April 2020 increased by 8.85% over the same period last year.
Cumulative figures of the first three months of the year show the value of transactions via Interbank electronic payment system increased by more than 21%, the total number of transactions via financial switching and electronic clearing systems increased by 81.32% in volume and 145.32% in value compared to the same period in 2019.
During the period of social distancing under the Prime Minister's Directive No. 16/ CT-TTg, the payment requirements of the people and society were fully met, online banking and ATM services operated continuously and smoothly.
According to the SBV, as of the end of 2019, transactions via the Internet channel increased by 64% in volume and 37% in value; transactions via mobile phone channels increased by 198% and 210% respectively in volume and in value compared to the same period in 2018.
According to the State Bank of Vietnam, the payment trend in the economy has shifted towards using more non-cash payment instruments.
Specifically, the proportion of ATM transactions in 2018 through Napas accounted for 62%, in 2019 decreased to 42%, while the proportion of interbank payment transactions in 2018 was 26%, in 2019 increased to 48%, demonstrating a change in the habit from withdrawals via ATMs for daily spending in cash to non-cash payments via electronic banking channels.
Electronic payments for public services are also of focus. As of the end of 2019, about 50 banks completed the electronic tax payment connection with the tax authorities and customs authorities in 63 provinces and cities; 95% of customs revenues are made via banks; 99% of businesses register for electronic tax payment.
In order to encourage non-cash payments in consumers, especially in the context that the Covid-19 pandemic has not been completely under control, banks are expected to reduce about VND 1,000 billion in payment service fees and many other incentives.
To date, there are about 78 organizations implementing Internet payment services and 49 organizations providing mobile payment services.
At the same time, as of May 2020, 34 non-bank organizations have been licensed by the State Bank of Vietnam to provide intermediary payment services.
With the potential of the market and the rising trend of contactless payments, this is a great opportunity for intermediary payment companies.
As of May 2020, 34 non-bank organizations have been licensed by the SBV to provide intermediary payment services. To date, there are about 78 organizations implementing payment services via the Internet and 49 organizations providing mobile payment services.
- The State Bank of Vietnam continued to reduce policy interest rates
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes