Bottlenecks need to be removed to promote cashless payments: experts

Many customers have switched to online shopping (Photo: VietnamPlus)

Hanoi (VNA) – There have been signs of reduction in the habit of using cash among people, but the switching to cashless payments remains slow, according to the State Bank of Vietnam (SBV).

At a forum on the implementation of Decision 2545/QD-TTg on the promotion of cashless payments in enterprises held by the Vietnam Chamber of Commerce and Industry (VCCI), participants agreed that after four years of enforcing the decision, e-payment and the e-payment ecosystem have seen positive progress.

Payments through mobile banking service rises nearly 180 percent

VCCI Chairman Vu Tien Loc said that the COVID-19 pandemic has affected all aspects of the socio-economic life. However, the pandemic has also forced people to be faster in digital transformation, changing the strategies in business, products and distribution.

He noted that the pandemic has entered the second stage without a promised time of full control, thus people have no other choice than changing faster and becoming ready and preparing the foundation for sustainable business to adapt to the pandemic.

Meanwhile, banking specialist Nguyen Tri Hieu held that Vietnam has entered a period that cannot neglect cashless payments. Amidst the increasingly serious developments of the COVID-19 pandemic, the world has experienced an unprecedented health crisis, he noted.

However, Hieu pointed out that the circumstance is also a chance to switch the traditional economy with the use of cash and great interference of human into a period thatpeople cannot continue to take part in every production and business processes but use advanced technology. This is also an opportunity for Vietnam to change, Hieu stressed.

Le Anh Dung, Deputy Director of the SBV’s Payment Department, said that the inter-banking payment system of the central bank is operating smoothly and safely with the integration of many new services such as foreign currency exchange and settlement.

In the first six months of 2020, the system processed 69.2 million transactions worth about 50 quadrillion VND, up 14.9 percent in value compared to the same period in 2019. The bank’s automated clearing house also dealt with 498 million transactions with total value of 3.9 quadrillion VND, a year-on-year rise of 72.4 percent in the number of transactions and 102.8 percent in value.

The ATM and POS systems maintained stable operations. By the end of June 2020, the country has more than 19,570 ATMs and 266,310 POS, up 4.4 percent and 2.5 percent over the same period last year, respectively.

According to Dung, the opening and using of private accounts have increased to 93.7 million by the end of June this year, contributing to attracting capital from the society and creating favourable conditions for the expanding of cashless payment services.

So far, 75 suppliers of payment services have launched payment service a through the Internet, while 45 others have allowed the payment through mobile phones.

The number of transactions through the Internet was more than 200 million with total value of 12.9 quadrillion VND, representing a year-on-year rise of 36 percent, while those through mobile phone reached 472 million with total value of 4.9 quadrillion VND.

An overview of the forum on promoting cashless payments in enterprises (Photo: VietnamPlus)

Difficulties remain

Along with the achievements, SBV representatives revealed that despite changes in the habit of using cash for payment, the switching to cashless paymentsamong peopleremains slow.

Many consumers have still hesitated in approaching new technology and payment tools due to worry about security and safety.

Besides, criminals related to e-payment have increased with more sophisticated tricks using high technologies.

Dinh Thanh Son, Deputy General Director of Viettel Post, said that the company has applied cashless payments since 2016 when 95 percent of its customers paid with cash.

By applying many solutions to encourage cashless payments, such as discount of 20-30 percent of delivery fees for customers using cashless payments, so far, the number of customers using e-payments has increased to 30 percent.

However, Son pointed out that the biggest difficulty in the field is fee for e-payment. He also proposed the use of only one QR Code for different e-wallets to make the process easier.

VCCI Chairman Loc held that the infrastructure and technical equipment serving cashless payments in Vietnam have yet to be effective to match the potential.

Meanwhile, participants showed hope that by 2025, about 80 percent of the population will have their own bank accounts, while cash payment only accounts for 40 percent of total transactions in Vietnam./.