Hanoi Times - The number of Vietnamese using debit and credit cards has grown to 900,000, or only one% of the country’s population, according to VISA International.
The popularity of the cards in
The cards are used in the increasing number of shopping malls that carry luxury or world-class brands of consumer goods.
The number of card holders is much higher in other Asian countries, with 5 million in
In
Hong Kong has one of
Still, most Vietnamese continue to make cash payments and the number of salaries paid via a bank account is still modest, according to Trinh Thuong Thuc, head of credit of Vietcombank’s
Deputy General Director of East Asia Bank (EAB), Phung Duy Khuong, said that many people still thought that payment cards were only for higher-income earners and for those who frequently travelled abroad.
Contributing to the problem were banks; weak regulations on loans and excessive amount of time spent on loan collections. Banks were still hesitant to issue cards for fear of risks, Thuc said.
Ha, however, said bank had sufficient foreign currency exchange fees, service fees, and mortgaged assets, more than many other countries.
There are 22 banks participating in the VISA payment system, with 10,000 Point of
About 50% of banks charge fees for purchase has made with credit or debit cards, while only 10% does so in
High services fees for card payments also account for the decline in the number of foreign tourists in
Nguyen Tu Anh, general director of SmartLink Card Service Co., said
Banks had not identified the right customers, she said.
Some customers who qualify have low demand for the cards, while others who have high demand can only receive a card with a secured deposit paid in advance.
Banks should improve their marketing strategies so that consumers can understand payment cards’ benefits, Khuong said.
More card alliance should be established and more POS should be installed throughout the country, Khuong said, adding that bonus point accumulation and service fee cuts should also be offered.
