Monday, 22 Oct 2018
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ECONOMY

Grab seeks to boost non-cash payment in Vietnam

Updated at Wednesday, 03 Oct 2018, 10:08
The Hanoitimes - Grab wants to assist Vietnam in developing online payment for public services, which is part of the Vietnam`s e-government strategy.
Ride-hailing firm Grab would propose measures to facilitate non-cash payment in Vietnam, according to Anthony Tan, Grab's CEO and co-founder. 
 
Illustrative photo.
Illustrative photo.
One of the measures is to allow user to create an e-wallet profile without having to link with a bank account, Tan said at a meeting with Deputy Prime Minister Vuong Dinh Hue on October 2. 

Additionally, the government should authorize third parties such as convenience stores to create an e-wallet profile and deposit money for customers. Another issue is to apply the e-KYC (Know Your Customer) function, enabling users to make transaction and complete formalities online in real time, Tan added. 

According to Tan, Grab wants to assist Vietnam in developing online payment methods for public services, which is part of the Vietnam's e-government strategy. 

Deputy PM Hue said Vietnam has been working towards a non-cash economy. Currently, the country has 78 credit institutions offering non-cash payment services and issued licenses to 27 e-wallet service providers. 

Moreover, Vietnam has regulations and policies in place to ensure financial safety and prevent money laundering, Hue stressed. 

Hue requested Grab to implement non-cash payment through its services in Vietnam, while considering to expand its operation in field of logistics in Vietnam. 

Tan agreed with the Deputy PM's requests and stated that Grab will soon offer its services in the field of logistics. 

A survey by the World Bank showed that the number of non-cash transactions per head in Vietnam is 4.9%, much lower than China's 26.1%, Thailand's 59.7%, and Malaysia's 89%.

Despite being one of the fastest growing e-commerce markets in the region, the rate of online transactions in Vietnam remains low. 

According to a plan on non-cash payment in Vietnam in the 2016 - 2020 period approved by the prime minister, by the end of 2020, the ratio of cash transactions will be reduced to below 10% and at least 300,000 point of sales (POS) are installed nationwide. 

As of present, 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34), said Dao Minh Tuan, deputy general director of state-controlled Vietcombank.
Ngoc Thuy
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