In recent years, e-wallet services have been deployed quite popularly in the market and have achieved certain results, confirming the advantages of features, convenience, safety, and speediness. reasonable costs, create trust with customers, and increasingly receive attention from banks and service providers.
According to current regulations, e-wallets must be linked to customers' payment accounts or debit cards opened at associated banks. However, by the end of 2019, the proportion of adults with accounts in Vietnam reached about 63.7%; The remaining percentage of people do not have access to financial and banking services and have real needs, especially customers in rural areas, remote areas, places where the banking system not able to reach. Meanwhile, telecommunication enterprises have advantages in infrastructure, telecommunication networks, transaction points throughout the country, and the rate of access to telecommunication services and the use of mobile phones are quite high. These are favorable conditions for developing modern mobile payment products and services, contributing to promoting non-cash payment and better meeting the increasing demands of the people.
The research and deployment of Mobile-Money have been assigned to the State Bank (SBV) as a focal point, in coordination with relevant agencies to develop a written decision on the pilot use. Telecom accounts pay for other small value services. To deploy Mobile-Money service in Vietnam, some issues need to be paid attention, please pay attention to the following:
Clause 2, Article 17 of the 2010 Law on State Bank stipulates: Banknotes and coins issued by the State Bank are legal means of payment in the territory of the Socialist Republic of Vietnam.
Decree No. 101/2012 / ND-CP dated November 22, 2012, on the trading centers (amended and supplemented) stipulates:
+ Non-cash payment instruments used in payment transactions (hereinafter referred to as payment instruments), including Checks, payment orders, payment orders, collection orders, collection orders, bank cards, and other payment facilities as stipulated by the State Bank (Clause 6, Article 4).
+ Illegal payment means are payment instruments not specified in Clause 6 of this Article (Clause 7, Article 4).
In addition to the above-mentioned business and commercial centers, the SBV has not specified other payment instruments, therefore, Mobile-Money is not a means of payment and Mobile-Money services has not been specified in a legal document or In other words, there is no legal framework to regulate Mobile-Money service provision of telecommunication enterprises in Vietnam.
Mobile-Money service was started and developed strongly in countries in Africa, Latin America where banking infrastructure, the infrastructure of financial service providers have not developed, in At that time, telecommunication network infrastructure was assessed as one of the most developed infrastructures in these countries. Therefore, operators have taken the initiative to take advantage of the popularity of mobile phones, the level of coverage, and the wide distribution network of telecommunication carriers to provide financial services to customers.
According to the Global Mobile Industry Report 2019 of the Global Mobile Information Association (GSMA - Global System for Mobile-Money), with 272 businesses providing services, the number of Mobile-Money accounts is increasing gradually through Year reached 866 million accounts in 2018 (up 20% compared to 2018), the transaction value reached $1.3 billion per day.
2. Views on Mobile-Money
In the 2019 Mobile-Money Field Situation Report, GSMA said that the service is only considered to be Mobile-Money when it meets the following criteria:
+ Is a money transfer and payment service via telephone mobile
+ Must be available to those who do not have a bank account (no formal account at a financial institution)
+ Must provide at least one of the following products: Domestic and international money transfer, bill payment, loan disbursement and payment to seller or store value
+ There must be a network of physical transaction points outside bank branches and ATMs, making it easily accessible to all citizens
+ Banking services using mobile phones only as an additional channel to access traditional banking products or payment services associated with traditional banking products not included. in this term (Mobile-Money is not Mobile Banking); ...
International Finance Corporation (IFC) said that Mobile-Money is essentially electronic money (e-money), in which payment and financial transactions are carried out on mobile phones. either directly or not directly linked to the bank account. In other words, Mobile-Money is a combination of electronic money (such as prepaid cards, e-wallets) and uses a mobile technology platform to make financial transactions and use a rental database. Mobile case to identify customers.
3. Some typical successful models
Recognizing that 8 out of 10 Kenyan people have a mobile phone, in 2007, the mobile operator Vodafone in Kenya (later commercialized by its subsidiary Safaricom) proposed the Central Bank Kenya (CBK) the construction and development of the M-PESA model. Initially, M-PESA was designed to help people repay loans with their mobile phones, reducing cash handling costs, thereby reducing interest rates. However, after a period of testing, M-PESA has been expanded to become a money transfer model. By the end of 2018, 30 million customers used Mobile-Money to make payment transactions with the transaction value of US $ 78.5 billion; Thereby, raising the rate of people having access to financial services to nearly 83% in 2018.
Philippines ' success in terms of the Mobile-Money market is the result of the initiative of the country's two leading mobile carriers, Smart Communication and Globe Telecon with two products, G-Cash and Smart Money. The Philippine Central Bank (BSP) allows banks to coordinate with telcos and related organizations to pilot services (telecom operators and service providers must be a legal entity). independent agents, which are managed by BSP in a separate document), and at the same time gradually research, build and complete the legal corridor for services.
In 2008, Vodacom Tanzania started to introduce M-Pesa products, and then Milicom company launched Tigo-Pesa products in 2009. In the same year of 2009, Airtel launched products with Airtel Money followed by Zantel introduced Ezy Pesa in 2010. Through the deployment of Mobile-Money service, from 112,000 accounts in 2008, the number of accounts registered to use Mobile-Money service increased sharply to more than 53 million accounts registered as of the end of February 2016 and nearly 261 thousand agents in Tanzania joined as agents for the Mobile-Money service. In order to support agents' liquidity management, the Central Bank of Tanzania allows Mobile-Money service providers to open accounts at various commercial banks based on their network coverage their logic.
Firstly, Mobile-Money will take advantage of telecommunications infrastructure, thus helping to reduce social costs to develop and expand payment services.
Secondly, the market will have more payment service providers, contributing to boosting trading and trading center activities, increasing access, and use of financial services. At the same time, thereby contributing to gradually changing the cash payment habit of the people is still quite popular today.
Thirdly, Mobile-Money contributes to providing customers without bank accounts a quick and convenient transaction channel. Customers can use the service 24/7, pay anytime, anywhere with mobile devices.
Firstly, the risks of customer identification and authentication (KYC): The identification and authentication of customers established by telecommunication enterprises themselves may not ensure KYC's accuracy of customers, especially in the situation of customers. Junk SIM status (using non-genuine information to register subscriber information, activating available SIM cards), buying and selling activated SIMs are still quite popular in Vietnam today. Since then, it has led to acts of impersonating customers in opening and using Mobile-Money, conducting fraudulent, and illegal transactions with Mobile-Money.
Secondly, risks in the prevention of money laundering and terrorism financing: Risks occur when employees at business points of telecommunications enterprises lack the capacity to detect signs and acts. money laundering, suspicious and unusual transactions; leading to the fact that it can be used to hide money sources, legalize illicit revenues to turn "money of illegal origin" into "clean money" and increase the level of money laundering vulnerability to Vietnam. Male.
Thirdly, risks arising from cash transactions: It is difficult for telecommunication enterprises to control the exact amount and value of cash received by customers; Risks in treasury work, vault safety for business locations; Risk of receiving counterfeit money when making direct cash collection/payment transactions; Risks occur in the case of inability to pay.
Fourthly, risks of technology, telecommunications infrastructure, facilities, and information technology do not meet the conditions of safety, security, disclosure, information leakage of customers, and loss of Mobile-Money account of the customer.
Fifth, the possibility of unfair competition between e-wallet payment service providers and Mobile-Money service providers.
Sixth, risks for customers: the issuance and use of Mobile-Money have not been prescribed in current legal documents. Therefore, when there is any risk to the payment of the customer, there is no legal basis to protect the rights and compensation for the losses and risks of the customer.
Seventh, difficulties in checking and controlling the amount of cash received by customers, which can be used to increase the value of deposits (changing the 1: 1 ratio), leading to difficulties in the management of money flow in the economy; difficulties in tax administration, inspection and tax examination for telecommunications businesses that provide Mobile-Money services.
In order to effectively deploy Mobile-Money service in the absence of a specific legal corridor, the SBV proposes a report on allowing Mobile-Money pilot implementation, in which, proposing a deployment model. pilot models such as Telecommunications enterprises (which have been licensed by the State Bank of intermediary payment services) to pilot the provision of Mobile-Money services within the scope (scope of operations, geography, goods and services, transaction limit limits); requires compliance with the 1: 1 principle without generating any monetary amount; take measures to manage and control risks for KYC customers, which require handling of SIM waste; requirements on the prevention of money laundering; managing business locations, units that accept payment; ensure information technology system, protect customers' rights and comply with tax laws, ...
The permission to pilot Mobile-Money in accordance with Resolution No. 52-NQ / TW of the Politburo on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution, which requires There should be an open, creative and pilot approach to new practical issues, creating favorable conditions for innovation and facilitating the process of national digital transformation and development. new products, services, economic models based on digital technology.
On that basis, should consider and allow to pilot Mobile-Money service. The results of the pilot implementation will be a practical basis for developing appropriate management policies.
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Alice Hoang - Vietnam Credit