Vietnam to build ‘integrated payment ecosystem’ to promote cashless payments
With emerging technologies such as AI and blockchain, Vietnam has the ability to leverage data connectivity to create ‘an integrated payment ecosystem’ to promote cashless payments, experts said at a recent meeting in HCM City.
At a seminar held as part of Cashless Day 2023, Pham Tien Dung, deputy governor of the State Bank of Vietnam (SBV), said, “Data connectivity is the key to unlocking the full potential of cashless payments.”
“By sharing data and collaborating across the ecosystem, we can create a more convenient and secure payment experience for customers, while also driving financial inclusion and economic growth,” he said.
The SBV aims to invest in infrastructure and foster innovation to create an ‘inclusive payment ecosystem that is accessible, convenient, and secure for all,’ he said.
Pham Anh Tuan, director of the SBV’s Payment Department, said, “We have set a goal of making cashless payments account for half of all transactions by 2025.
“We will prioritise the establishment of a more comprehensive, accessible, and secure payment infrastructure across the country to make digital payment a preferred mode of transactions for all,” he added.
With an already strongly developed payment infrastructure, Vietnam sees average payments of US$40 billion per day, according to Tuan.
The central bank is drafting a new decree to create a legal framework to promote non-cash payments.
He stressed the important role of emerging technologies such as artificial intelligence (AI) and blockchain in improving data connectivity and enhancing the customer experience.
These technologies also help automate payment processes, reducing fraud and errors, and ‘personalise the payment experience and offer targeted benefits and incentives to consumers,’ he noted.
Phan Van Mai, chairman of the People’s Committee, speaking at the seminar, said, “Digital payment is not just an option but a necessity for the future.”
Mai proposed specific regulations to accelerate cashless payments, such as transactions above VND10 million requiring payment via banks, to boost cashless payments.
The city’s agencies such as healthcare, education, insurance, and transportation had conducted cashless transactions, he said.
The city had issued a data strategy, including incentives to encourage cashless payments.
It would continue to work with business associations and industries to promote cashless payments through widespread publicity, he added.
According to an SBV report, more than 75% of adults across the country currently have a bank account.
Interbank electronic payment transactions increased by 52.8% year-on-year in terms of volume in the first four months, it said.
Payment via QR code had the most impressive growth with an increase of more than 161% in quantity and 36.6% in value.
Cash withdrawals at ATMs continued to decline, falling by 3.5% in quantity and 5.5% in value.
The seminar was organised as part of Cashless Day 2023, attracting over 200 participants, including business owners, government officials, and representatives from the banking and fintech industries.
In addition, the Cashless Town Festival was organised from June 16-18 as part of Cashless Day 2023, attracting a diverse collection of merchants, consumers and tech enthusiasts.
It offered various promotion programmes for shoppers and showcased a wide range of cashless payment solutions, including mobile wallets and QR code payments.