Credit cards for corporates facilitating cashless adoption

Credit cards for corporates facilitating cashless adoption - photo freepik.com

Southern-based lender Viet Capital Bank worked with JCB International Co., Ltd., the international operations subsidiary of Japan’s leading credit card provider JCB, to launch the Viet Capital Bank JCB corporate credit card in late April. Viet Capital became the first Vietnamese bank to issue the card, which strengthens the long-term strategic relationship for the pair.

Cardholders can access JCB’s acceptance network with about 35 million merchants around the world and receive special privileges at selected merchants and customer services at JCB PLAZA, an overseas service counter.

Kazuma Shukuin, chief representative of JCB International’s Ho Chi Minh City branch said, “We are pleased to have Viet Capital Bank as our first Vietnamese bank for issuing the JCB Platinum Corporate Credit Card. Starting in late 2019, Viet Capital has been contributing significantly to our business, and the cooperation is now stepping forward for corporate client. This is an exciting step of our expansion for this potential customer segment.”

Vowing to provide unparalleled experiences for customers and partners, the only international payment brand based in Japan has expanded its footprint in Vietnam’s market by cooperating with a number of local lenders such as Vietcombank, VietinBank, Techcombank, ACB, and Sacombank.

Ngo Quang Trung, CEO of Viet Capital Bank, highlighted, “The collaboration with JCB is a significant measure in our strategic plan to become a multifunctional retail bank that is modernised and customer-oriented, especially for individual customers and small- and medium-sized enterprises (SMEs). The launch of the credit card distinctive builds on numerous features in the bank markets for such customers.”

Viet Capital Bank is not the only lender exploring this convenient approach to assist this promising sector. Some other lenders have also quickly adopted new ways of paying without physical contact for their corporate clients.

Last year, VPBank and Mastercard announced collaboration with Amazon Web Services to help Vietnamese SMEs utilise its cloud services to modernise IT infrastructure, accelerate innovation, and reduce operational costs.

Techcombank has also rolled out some alluring offers for its corporate cardholders using a Techcombank Visa business debit card with attractive promotions from Shopee, Dropbox, and Office 365 among others. The bank expects to enhance corporate customers’ efficiency when conducting business transaction, or purchasing any business-to-business services.

Shinhan Bank Vietnam has also joined forces with some foreign-invested corporations and international card services providers, such as Visa, the Korean Chamber of Commerce in Vietnam, and Korean Air in order to optimise corporate expense execution and management with special privileges.

When using a business credit card, companies will be liable for debt and fees.

Shinhan Bank believed business cards represent a smarter way to manage business expense for cost efficiency, greater control, and exclusive privileges.

“As a result, cardholders will be free of foreign currency exchange burdens, and enjoy cashless perks for their overseas business trips. Furthermore, corporate clients could save time from paperwork for cash payment and advanced funding for employees,” a Shinhan Bank representative noted. “Instead of employees submitting their receipts for reimbursement, companies now can easily track spending in a fast, convenient way, and can also manage spend limit and manage fraud risks.”

Virtual cards account safeguards against unauthorised spend, helps prevent fraudulent purchases, simplifies reconciliation, and eliminates manual paper-based payments with a more efficient and traceable electronic payable solution.

According to Dang Tuyet Dung, Visa country manager for Vietnam and Laos, the unprecedented coronavirus pandemic has been a driving force for Vietnam’s cashless payment industry.

“In line with consumers’ strong belief about a cashless society, Vietnam’s cashless payment industry will be big due to the fast-paced technology advances and Visa’s unwavering commitment to building a new digital payment platform here,” Dung told VIR. “Visa will continue to communicate the benefits of a cashless society to Vietnamese consumers. Our plan is to deploy new payment technologies for everyone. The Vietnamese public are quick to pick up on the latest innovations, making this an exciting market for the digital economy to thrive.”

From April this year both local and foreign banks operating in Vietnam have been issuing chip cards instead of magnetic ones, with the aim to ensure greater payment security and thus contribute towards a cashless economy.

According to the State Bank of Vietnam, this initiative aims to assert more pressure for banks to place their focus from cash-based payment to contactless methods.