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The State Bank and enterprises join hands to promote cashless payments

15/06/2020

According to the State Bank of Vietnam (SBV), in the first months of 2020, under the direction of the Government, the SBV, together with the relevant ministries, branches and agencies, promptly implemented a number of solutions simultaneously, thus creating clear changes in cashless payment development.

In particular, in the context of the recent Covid-19 pandemic, convenient payment products and services together with many incentive programs and practical support have created favorable conditions and encouraged people and businesses to use non-cash payment service, thereby contributing to limiting exposure and preventing the spread of the disease under the direction of the Government.

Mr. Pham Tien Dung - Director of SBV Payment Department said that the Fourth industrial revolution has been strongly applied in payment field; Security, safety issues in payment are always of concern.

As a result, cashless payment activities have grown strongly: In the first four months of 2020, domestic payment via bank cards increased by 26.2% in volume and 15.7% in value; Internet payment increased by 3.2% in volume and 45.7% in value; payment via mobile phone channels increased by 189% in volume and 166.1% in value over the same period in 2019.

The trend of payment in the economy has shifted towards using more non-cash payments. Electronic payment in the public service sector has been focused and strengthened. Notably, in the first months of 2020, although affected by Covid-19 pandemic, payment activities still showed a significant growth compared to the same period last year.

In the first four months of 2020, the interbank electronic payment system (IBPS) operated stably, safely and smoothly. The total value of transactions through the IBPS increased by 18.30% over the same period in 2019. Transactions through the financial switching and electronic clearing and settlement services increased by 73.36% in volume and increased 129.47% in value compared to the same period in 2019.

Especially, during the time of social isolation under Directive No. 16/CT-TTg, the payment requirements of the people and society were still fully met, online banking services and ATMs operated continuously and smoothly. Implementing the task assigned at Directive No. 11/CT-TTg, the State Bank of Vietnam has given timely instructions under its authority on exemption and reduction of payment service fees for customers to support people and businesses affected by Covid-19.

It is estimated that the total amount of payment service fees that banks exempt or reduce for customers by the end of 2020 after two fee reductions is about VND 1,004 billion (of which the first reduction is VND 517 billion and the second reduction is VND 487 billion).

In particular, most of the achievements of the fourth industrial revolution have been strongly applied in the field of payment. Security and safety in payment are always of concern, customers are placed at the center in the supply of products and services, ensuring legal rights.

 

Kylie Nguyen

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