A visitor at HDBank booth at the Cashless Town Festival organised as part of Cashless Day 2023 last weekend in HCM City (Photo: VNA) Speaking 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 isthe key to unlocking the full potential of cashless payments.”
“By sharing data and collaborating across the ecosystem, we can create a moreconvenient and secure payment experience for customers, while also drivingfinancial 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 forall,’ he said.
Pham Anh Tuan, director of the SBV’s Payment Department, said: “Wehave set a goal of making cashless payments account for half of alltransactions by 2025.
“We will prioritise the establishment of a more comprehensive, accessible, andsecure payment infrastructure across the country to make digital payment apreferred mode of transactions for all,” he added.
With an already strongly developed payment infrastructure, Vietnamsees average payments of 40 billion USD per day, according to Tuan.
The central bank is drafting a new decree to create a legal framework topromote non-cash payments.
He stressed the important role of emerging technologies such as artificialintelligence (AI) and blockchain in improving data connectivity and enhancingthe customer experience.
These technologies also help automate payment processes, reducing fraud anderrors, and ‘personalise the payment experience and offer targeted benefits andincentives 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 astransactions above 10 million VND requiring payment via banks, to boostcashless payments.
The city’s agencies such as healthcare, education, insurance, andtransportation had conducted cashless transactions, he said.
The city had issued a data strategy, including incentives to encouragecashless payments.
It would continue to work with business associations and industries to promotecashless payments through widespread publicity, he added.
According to an SBV report, more than 75% of adults across the countrycurrently have a bank account.
Interbank electronic payment transactions increased by 52.8% year-on-year interms of volume in the first four months, it said.
Payment via QR code had the most impressive growth with an increase of more than161% in quantity and 36.6% in value.
Cash withdrawals at ATMs continued to decline, falling by 3.5% in quantity and5.5% in value.
The seminar was organised as part of Cashless Day 2023,attracting over 200 participants, including business owners, governmentofficials, and representatives from the banking and fintech industries.
In addition, the Cashless Town Festival was organised from June 16-18 aspart of Cashless Day 2023, attracting a diverse collection of merchants, consumersand tech enthusiasts.
It offered various promotion programmes for shoppers and showcased a wide rangeof cashless payment solutions, including mobile wallets and QR code payments./.
VNA
