Cashless payments surge by over 63 per cent

Vietnam saw an impressive 8.5 per cent increase in February, marking a significant boost in the country's economic outlook for the early months of 2024. (Photo: VNA)

Hanoi – Non-cash payment transactions increased by 63.3 per cent in volume and 41.45 per cent in value in January, compared to the same period last year, the State Bank of Vietnam (SBV) has announced.

According to the central bank, internet banking transactions surged by 57.85 per cent in volume and 32.43 per cent in value. Mobile banking transactions increased by 68.54 per cent in volume and 41.12 per cent in value. Notably, QR code payments skyrocketed by 892.95 per cent in volume and 1,062.01 per cent in value.

Meanwhile, the amount and value of point-of-sale (POS) transactions rose by 16.87 per cent and 13.65 per cent, respectively. The figures for transactions via automated teller machines (ATM) went down by 15.14 per cent and 18.76 per cent, respectively.

These results illustrate a clear trend towards transitioning from cash to cashless payments.

Towards digitalisation in banking operations, the SBV has encouraged credit institutions to implement digital transformation and collaborate with various sectors to develop and expand the digital ecosystem, which focuses on customer-centric product and service offerings with seamless and personalised transaction experiences.

Many basic banking services have been completely digitalised, including deposits, bank accounts opening and using, e-wallets, and money transfers. Many Vietnamese banks now have over 90 per cent of their transactions conducted via digital channels.

By the end of 2023, about 40 banks and foreign bank branches had opened 35 million accounts via the eKYC (electronic Know Your Customer) process. The number of individual payment accounts reached over 182.88 million last year, up 21.8 per cent compared to the same period in 2022, with indicators of non-cash payments growing well.

Cashless payments in e-commerce to account for 50 per cent by 2025 The Ministry of Industry and Trade (MoIT) has set a target to increase the cashless payment ratio in e-commerce, especially e-payments through payment intermediaries or applications, to 50 per cent by 2025.

Cashless society ambitions offered a helping hand Vietnam is swiftly revolutionising its financial sector by phasing out outdated card technologies, embracing non-cash solutions, and enacting laws to enhance security.