The regulation on mobile payment will not allow users to recharge from scratch cards but they must conduct deposits and withdrawals from the registered bank account.
Prime Minister Nguyen Xuan Phuc has agreed the deployment of the pilot project on direct carrier billing services, also known as Mobile Money, according to a latest government resolution.
Source: State Bank of Vietnam. Chart: Nhat Minh |
The State Bank of Vietnam (SBV), the country's central bank, in April submitted the Mobile Money project to the government after completing the pilot scheme allowing online purchases with mobile devices.
In 2019, the government asked the SBV to research and propose a pilot scheme of mobile payment service given the absence of specific regulations on telecom-based financial services and a sharp increase of e-wallet transactions.
According to Pham Tien Dung, head of the Payment Department under the SBV, the regulation will not allow these accounts to recharge from scratch cards but users must conduct deposits and withdrawals from the registered bank account. The transaction limit is set at VND10 million (US$428.9) per month.
Mobile payment in Vietnam is growing rapidly, leading to the stricter requirement on security. The biggest risk in cyber-transactions is anonymity, according to Dung, therefore, customer identification is mandatory.
The similarity between mobile money and e-wallet is the use of an identification account. However, while e-wallet identifiers are provided by banks, in mobile money, users’ identifiers are provided by telecommunication companies. The challenge for telecom companies is how to identify the client correctly in the same ways as banks do, to avoid any fraudulent transactions.
To deal with this problem, up to two-thirds of the draft document on cashless payment, which is set to replace Decree No.101 dated 2012, is being built and focused on management of transaction risks, prevention of cybercrime and money laundering.
Leading telecom carriers including VNPT and Viettel have been granted licenses by the SBV to carry out such services. A national personal database has also been built for issuing personal identification numbers and also adopting e-KYC (electronic Know-Your-Customers).
Statistics from the BIDV Training and Research Institute shows that 90 countries are providing the direct carrier billing service with nearly 870 million subscribers and 272 apps. Daily transactions average US$1.3 billion and over one million accounts remain active for at least 90 days.
At the end of 2019, Vietnam had around 129.5 million mobile subscribers, around half of them using 3G and 4G, while the national smartphone penetration reached 45% of the country’s population or 43.7 million people, the report cited SBV figures released last November.
The government targeted to reduce the ratio of cash payments from 11.3% in 2019 to less than 10% by the end of this year, and 8% by 2025.
Other News
- 3,400 taels of gold purchased at the first-in-11-year auction
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Vietnam’s c.bank sells USD to stabilize exchange rate
- Central bank to auction gold to calm domestic market
- Vietnam's Central Bank ready to steady foreign exchange market
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
Trending
-
Capital Law revision helps Hanoi promote role as nation’s socio-economic hub
-
Vietnam news in brief - April 25
-
Vietnamese contemporary ballet celebrates Europe Day
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area
-
Liên kết hữu ích