Alipay, Wechat Pay will no longer be illegal

29-Oct-2020 Intellasia | Dau tu Online | 6:02 AM Print This Post

Plenty of banks are preparing to shake hands with foreign e-wallets, when the legal corridor on international payments is about to change.

Bank market share is narrowed

A representative in charge of technology of a joint stock commercial bank said that the bank has been working with Wechat Pay for two years and is ready to sign a cooperation contract, allowing Chinese customers to use electric wallets. Wechat Pay members can pay in Vietnam market through the banking system and vice versa.

“We have proposed and expected the State Bank of Vietnam (SBV) to soon remove problems related to international payments so that the cooperation could soon be implemented. Currently the bank is no longer a monopoly on international payments, a large piece of market share has fallen into the booming payment intermediaries in many countries around the world… However, instead of fear, we want to shake hands with international payment intermediaries to exploit the file of mutual customers, mutual benefits “, the leader said.

Recently, a lot of banks, payment intermediaries in the country also submitted proposals to the SBV, proposing payment cooperation with Chinese and Korean e-wallets such as Alipay, Wechatpay, Unionpays, Nonghyup Bank…, to serve international tourists.

In recent years, the phenomenon of Chinese tourists paying “underground” by Alipay, Wechat Pay has been quietly taking place in many localities in the country such as Nha Trang, Quang Ninh… In fact, Alipay or Wechat Pay are the large electronic wallet that many domestic banks are eager to cooperate with, but cannot proceed.

According to current regulations, with international payment activities, domestic banks are only allowed to cooperate with international banks, card organisations…, not to cooperate with new international payment transactions. As for e-wallets, there is also no regulation on the provision of non-payment services through the customer’s payment account. This legal gap makes the SBV unable to control the “flowing” cash flow out of Vietnam through foreign e-wallets.

However, the above regulations are being considered for amendment by the SBV. Pham Tien Dung, director general of the Payment Department (SBV) affirmed that the industrial revolution 4.0 has created many new international payment models. Previously, talking about international payments, mainly referring to payment via bank accounts, international credit cards. But now, there are many new models of international payment, including e-wallets.

Will there be a wave of banks shaking hands with foreign wallets?

According to the draft amendment to Decree 101/2012/ ND-CP on non-cash payments, the SBV will allow banks to cooperate with foreign payment service providers to perform the delivery. international payment services. Payment intermediary service providers are also allowed to cooperate with foreign payment service providers to assist licensed banks to conduct international payment transactions (must be approved by the SBV’s document).

Banking experts believe that, with the development of technology, cross-border payments are now extremely easy. Cross-border payment intermediary platforms are developing very strongly in the world, not only attracting fintechs but also Big Tech (Amzon, Apple, Google…).

Accordingly, customers of these payment intermediaries can make international payment transactions, without the need for a bank account. But to cooperate with these organisations, domestic banks need the permission of the SBV.

Nguyen Hung, general director of TPBank affirmed that the domestic bank cannot link with foreign e-wallets such as Wechat Pay and Alipay because there is no legal basis. “We are all ready, we have cleared the flow, just wait for the SBV ‘switch on’ to proceed immediately”, Hung said.

It is forecasted that the amendment of the SBV’s regulations will pave the way for a “wave” of handshakes between domestic banks, fintech and foreign e-wallets. Many international payment intermediaries are targeting the Vietnamese market. The banks that are ahead in this race will have the opportunity to break through the settlement market share. This wave will also actively support the tourism, service, e-commerce industries…

The amendment of the legal corridor, allowing domestic banks and payment intermediaries to cooperate with foreign e-wallets to develop cross-border e-payment services not only helps these units develop market part of international payment, increasing convenience for people, but also helping regulators more easily grasp information about transactions, control money laundering risk, tax evasion…

 

Category: Finance, Vietnam

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