Illustrative image (Source: VNA) The scheme aims at facilitating bilateral trade, investment,tourism as well as the use of local currencies between the two countries.
This linkage also represents another milestone for the ASEANPayment Connectivity initiative, which aims to connect the payment services ofASEAN countries using new financial technology to help foster financialintegration and sustainable growth in the region.
This service will facilitate cross-border payments of thepeople of both countries. This is especially the case when cross-border travelbecomes the norm again, given that tourist flows between both countries werearound 1.5 million in 2019. With this service, tourists from Thailand can makeQR payments using their mobile phones to pay for goods and services in Vietnamand vice versa.
This will eventuallyhelp stimulate the economies of the two countries and the region as a whole.
SBV Deputy Governor Nguyen Kim Anh said that the launch ofthis pilot project marks a significant accomplishment in the relationshipbetween the central banks and Vietnam and Thailand in general.
It also marks an important milestone in the collaboration ofASEAN central banks in implementing ASEAN’s initiative on payment connectivityusing interoperable QR Codes to deepen regional economic integration and fosterdigital transformation of each economy, he said.
For his part, Ronadol Numnonda, Deputy Governor of the BOT, said that the benefits of this project will come in many forms. It will offerconvenience and security for people travelling between Thailand and Vietnam, leadingto growth in tourism and contributing to the two countries’ progress towards a moredigitalised society, he said.
This project is made possible with the collaboration fromvarious stakeholders from both countries under the joint stewardship of the SBVand the BOT. These include the National Payment Corporation of Vietnam (NAPAS)and the National ITMX (NITMX) as switching operators, as well as Vietnam JointStock Commercial Bank for Industry and Trade (Vietinbank) and Bangkok Bank asthe settlement banks responsible for cross-border settlements for the service.
The service banks which provide this cross-border QR paymentservice to their customers via their mobile banking applications include TienPhong Commercial Joint Stock Bank (TP Bank), The Joint Stock Commercial Bankfor Investment and Development of Vietnam (BIDV), Saigon Thuong Tin CommercialJoint Stock Bank (Sacombank) from Vietnam, and Bangkok Bank from Thailand.
In addition, banks that have expressed their interests tojoin the project as service banks in the near future include The Joint StockCommercial Bank for Foreign Trade of Vietnam (Vietcombank) from Vietnam andBank of Ayudhya, CIMB Thai Bank, Kasikornbank, Krung Thai Bank, and SiamCommercial Bank from Thailand. At this stage, both central banks believe thatthis cross-border QR payment will result in a safer, more efficient andcost-attractive alternative for retail payment by the general public. It willalso serve as a catalyst for many more collaborations on financial innovationsin the coming years.
In the first phase, Thai tourists using Bangkok Bank’smobile banking application can scan this Project’s Viet QR Codes to pay forgoods and services at TP Bank and BIDV’s merchants. Conversely, tourists fromVietnam using TP Bank and Sacombank’s mobile banking applications can scan theThai QR Codes of Bangkok Bank’s merchants in Thailand./.
VNA
