Cashless payments record strong growth

The number of non-cash payments in Vietnam has steeply risen so far this year (Illustrative photo: netnews.vn)

The information was revealed by the Ministry of Planning and Investment during a conference on the implementation of the Government’s Resolution 02/NQ-CP on improving the business climate and raising the national competitiveness.

Cashless payment is among the significant issues stated in Resolution 02 issued earlier this year.

Total transactions via the banks’ e-payment system increased 23.23 percent in number and 17.63 percent in value against the same period last year.

As of March 31, online payments expanded 65.81 percent in number and 13.46 percent in value year-on-year.

Notably, in the period, mobile payment witnessed a year-on-year surge of 97.75 percent and 232 percent in number and value, respectively.

The growth of the number of people making mobile payments in stores in Vietnam is the fastest, according to the Global Consumer Insights Survey 2019 conducted in 27 territories and countries worldwide by PwC.

The country's mobile payments increased to 61 percent of digital payments in 2019 from 37 percent in the previous year.

To date, as many as 50 banks have joined hands with tax and customs agencies to collect taxes online, in all localities across the country. Meanwhile, electricity bills can be collected via 27 banks and 10 payment service providers.

Data of the State Bank of Vietnam (SBV) show that the country has nearly 18,300 ATMs and more than 289,000 points of sale. Up to 76 banks provide internet banking services and 44 have mobile payment services. There are 24 electronic wallet providers.

According to the SBV’s Payment Department, non-cash payments are becoming a trend in Vietnam and the use of cash is falling. By the end of the third quarter of 2018, the volume and value of transactions via ATM increased by 12 percent and 16 percent respectively against the end of 2017. The rates of payments via POS were also high at 42 percent and 29 percent, respectively.

Vietnam has been promoting electronic payments since 2008. Only about 40 percent of the country’s 95 million people have bank accounts, mostly in urban areas, while there are around 120 million mobile phone subscriptions.