Oct 18, 2017 / 12:46

E-payment in banking system for the benefit of customers

The Hanoitimes - Vietnam is heading toward a cashless economy by 2020 through increasing electronic payment.

With the current trend, commercial banks have increased cooperation with enterprises to enhance functions in e-payment. 
 
E-payment in Taxi.
Nguyen Thanh Hoa in Hai Ba Trung, Hanoi, said, previously, whenever she went to to super market, she had to find an ATM post to withdraw cash for shopping. But this habit has changed recently, when super markets now are equipped with the charging device, so that customer can pay through card without additional fees. At present, customers now have the option to pay by card at super markets, and pay by cash in traditional markets or small stores. With the incentive of not having additional fee when withdrawing cash, customers pay through card sometimes get discount or promotion from sellers. 

With this being a hot trend, commercial banks have cooperated with enterprises, super markets, stores with discounts and promotion events to provide payment services. Recently, Eximbank has cooperated with the National Payment Corporation of Vietnam to implement the service of inter-bank wire transfer through the bank account of 38 commercial banks, which is applicable for customers transfer money through internet banking; at the VIB Bank, customer buying train ticket online can make payment by card at 160 branches of VIB Bank across the country. On the other hand, ACB Bank has promotion event of reducing the wiring cost from 30 – 50% for customers using the internet banking and free of charge for the service registration and annual fee. Techcombank also informs that since September 27, the bank has promoted the event “Zero fee”, in which all e-transactions of customers are free of charge, including all transaction within and inter-bank. 

By 2020, it is expected that Vietnam will have at least 300,000 POS installed with more than 200 millions of transaction per year; 100% super markets, shopping malls and retailers have the required devices to accept payment through cards, which will be used by customers when purchasing goods and services; 100% State treasury in provinces and cities under the central government management; state treasury in districts, wards under provinces and cities of central government management have required devices to accept payment through cards for the purpose of collecting revenue for state budget. 

In order to achieve this plan, it is necessary to continue developing and finalizing the technological infrastructure. Moreover, economic components need to apply new and modern payment method with high speed processing, but at the same time is simple and convenient, which includes the payment through scanning (with and without contact), payment through mobile phones using the technology of NFC/MST, or QR code scanning.

The network of POS and mPOS must be arranged efficiently, including the improvement in quality and services. The government needs to encourage non-banking institutions to cooperate and work with payment services providers, or intermediaries to invest, develop, manage, operate and provide the system network of payment through cards.

In particular, it is important to ensure the quick and safe process of transaction; increasing security and privacy during the transaction. At the same time, economic components can use some new technology for safety such as 3D Secure, QR code, Tokenization, which is suitable with the current trend of transactions in the world. Moreover, SBV also mentioned the promotion and advertisement, training skills and knowledge in finance sector, so that customers, related enterprises and organizations are aware of paying through POS, mPOS. 

Recently, there are many new transaction methods through smartphones being developed and piloting in Vietnam. Since the end of September, the payment method through smartphone called Samsung Pay has been officially implemented nationwide. According to statistics, as of September 28, which is the deadline for beta use, the number of download of Samsung Pay is 20,000 turns, while the number of transaction through Samsung Pay is approx. 6,000 turns.