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Banking news: Cashless payment still 'booms' after the pandemic

Banking news: Cashless payment still 'booms' after the pandemic

Monday 20, 06 2022
The cashless payment solution was highly recommended during the outbreak of the Covid-19 pandemic to limit contact, and this was expected to subside when the pandemic is under control. In fact, however, it has become a habit of many Vietnamese people.

Covid-19 has really become an important lever in accelerating non-cash payment activities, moving towards a cashless society oriented by the Government and the State Bank.

Cashless payments become a habit

Many people's payment habits have completely changed after the epidemic was over. A study on consumer payment attitudes published by VISA in early June 2022 shows that Vietnamese consumers have quickly embraced digital payment methods and there has been an evident change in payment habits.

Specifically, 65% of Vietnamese consumers carry less cash in their wallets and 32% said they will stop using cash after the pandemic. Along with that is the significant growth of cashless payment. In particular, nearly 76% of consumers currently use e-wallets and the percentage of card users is even higher (82%).

Vietnamese consumers carry

Also according to VISA, online shopping and cash alternatives will be maintained after the pandemic. Two-thirds of Vietnamese users have tried online shopping during the pandemic, and half of Vietnamese users have tried shopping for the first time through a social networking platform. Nine out of 10 consumers are now using home delivery, and almost all are using it more often than in pre-pandemic times.

Due to the impact of the Covid-19 pandemic, more than 80% of consumers are now using cards or making payments via QR codes and e-wallets at least once a week.

Meanwhile, half of Vietnamese consumers have started using cards more often, while 64% and 63% have increased the use of contactless payments via mobile phones and e-wallets. Convenience is always the top priority of peple, followed by infection safety and transaction security.

According to Ms. Dang Tuyet Dung, Director of Vietnam and Laos VISA, the impact of the Covid-19 pandemic cannot be ignored both in the short and long term. As these impacts lead to lasting changes in how consumers shop and pay. The success of digital payment acceptors and businesses depends on their ability to innovate and transform to adapt to these changes.

Strong growth thanks to eKYC

The fact that many people change their payment habits was partly due to the participation of state management agencies, the banking industry, and payment companies.

Nguyen Minh Tam, Deputy General Director of Saigon - Thuong Tin Commercial Joint Stock Bank (Sacombank) said that after the Covid-19 epidemic, cashless payment activities continued to attract people's attention. It is growing at a steady rate everywhere, not just in urban areas.

According to Mr. Le Anh Dung, Deputy Director General in charge of the Payment Department of the State Bank, non-cash payment has a great impact as it gets the attention of a large number of people and businesses. Digital payment have become an inevitable trend in the economy and consumers’ top priority.

Notably, thanks to the implementation of opening payment accounts using electronic customer identification (eKYC), during the Covid-19 epidemic, many new customers who had not yet accessed banking services could open a remote account despite social distancing.

State Bank

Statistics of the State Bank show that about 3.4 million accounts and 1.3 million new bank cards have been opened online, remotely via electronic method (eKYC). Currently, the percentage of adults with a current account is nearly 66% with an average growth rate of 11.44% from 2015 to 2021.

By April 2022, non-cash payment transactions had increased by 69.7% in quantity, and 27.5% in value. Transactions via Internet also increased by 48.39% and 32.76%, respectively; via mobile phones increased by 97.65% and 86.68% respectively; via QR code increased by 56.52% and 111.62% respectively over the same period in 2021. The total number of activated e-wallets increased by 10.37% compared to the end of 2021.

A highlight in the process of moving towards a cashless society is the Government's permission to pilot the implementation of telecommunications accounts to pay for small value goods and services (Mobile Money).

At a recent press conference of the State Bank of Vietnam, Mr. Le Anh Dung said that after only 4 months of implementing Mobile Money, 1.1 million new Mobile Money accounts have been opened; in which, there are more than 60% of Mobile Money users in rural, mountainous, remote areas.

State Bank

Regarding this activity, in the past time, there have been no unfortunate risks and the State Bank will accompany the Ministry of Information and Communications and the Ministry of Public Security to promote the further development of Mobile Money, especially is remote areas.

In order to promote cashless payment, a representative of the State Bank said that in the coming time, the State Bank will continue to study, review, complete the legal framework, develop mechanisms and policies to promote the payment of cashless payment on the basis of technology application and innovation.

Source: vietnamfinance

Compiled by VietnamCredit


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