Vietnam ready for mobile payment

Monday, 2019-03-11 10:29:47
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Mobile payment is expected to benefit both consumers and businesses.
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NDO - Mobile payment is becoming more and more popular thanks to its undeniable benefits, such as quickness, convenience, high security and continually updated features.

It is also an effective solution in the government’s push for the development of non-cash payment methods. With large financial resources and a strong technological foundation, Vietnamese carriers are now ready to roll out mobile payment services as soon as they are granted licenses.

Mobile payment is growing rapidly around the world, characterised by its speed and convenience. This method is not only easy to implement in cities but can also be quick to expand to rural and remote areas, offering substantive benefits to both consumers and businesses.

With its proven feasibility and efficiency, especially in countries where the banking system’s coverage remains limited, mobile payment is growing popular and has become an inevitable trend in many countries. In some countries, mobile payment has become a major payment channel for the people, greatly facilitating businesses and small transactions.

In Vietnam the government has introduced a number of policies to encourage non-cash payment methods. Thanks to that, several electronic wallets have been launched, providing convenience in paying utility bills and shopping, though their impacts remain limited.

As new technologies are sweeping Vietnam, the country faces the requirement to carry out transformations into a digital economy. This includes the promotion of digital financial services in general and mobile payment in particular to lay the foundation for the development of other fields.

As the agency in charge of information and communications technology, the Ministry of Information and Communications (MIC) has proposed that the government allow money transfer and shopping via mobile accounts, making mobile payment more accessible and boosting economic growth.

At a recent meeting with the MIC, Prime Minister Nguyen Xuan Phuc approved this proposal and permitted the trial of using mobile accounts to pay for small-value transactions.

Deputy PM Vuong Dinh Hue has also affirmed that only 30-40% of the Vietnamese population have bank accounts, which mainly concentrate in urban areas, while the number of mobile subscribers has exceeded the total population and the telecoms network covers entire the country.

As such the use of mobile accounts for payment will bring about many benefits and address many social problems.

Since 2008 when policies to promote non-cash payment methods were introduced, VNPT has been one of the pioneers with its EPAY electronic wallet. Recently, VNPT released VNPT Pay, an intermediary payment app expected to change Vietnamese consumers’ habit of using cash. The app is a platform for consumers to make a wide range of transactions such as phone and cable TV bills, air and train tickets, electricity and water bills, insurance and cinema tickets, and so on.

Mobile payment is a fast, feasible and effective solution to realising the government’s push for digital financial services and VNPT is financially and technologically ready to implement the service as soon as it is permitted.

The benefits of mobile payment are indisputable, but the method also presents a number of problems concerning national security and cybercrime.

But Vietnamese carriers are confident that they can find a way to manage the money flowing through the mobile network in order to ensure the interests of both consumers and regulators.