Electronic payment development has a double impact

14-Dec-2019 Intellasia | Thoi bao Ngan hang | 6:02 AM Print This Post

On the morning of December 10 in Hanoi, the Forum of Developing electronic payment ecosystem 2019 took place with theme ‘Moving with chip technology’ (EPF 2019). With the support and sponsorship of the State Bank of Vietnam (SBV), the Vietnam Economic Times and National Payment Corporation of Vietnam (Napas) organised this forum.

Attending and chairing the forum were deputy prime minister Vu Duc Dam, deputy Governor Nguyen Kim Anh, deputy minister of Health Truong Quoc Cuong, Professor Dao Nguyen CatEditor-in-Chief of Vietnam Economic Times, as well as hundreds of delegates from related ministries and branches.

According to recent report data, domestic payment transactions via bank cards, internet payments, mobile phones, special payment for public services via banks increased rapidly.

Therefore, the EPF Forum 2019 had focused on analysing and proposing solutions to develop an electronic payment ecosystem to minimise cash payments on the total means of payment according to the government’s objectives. Specifically, by the end of 2020, the proportion of cash on total payment means would be below 10 percent and by 2025, this ratio would be below eight percent.

Speaking at the forum, deputy Governor Nguyen Kim Anh said that promoting electronic payment towards a cashless society was an inevitable development trend, creating a double impact to encourage economic growth and support the implementation of a comprehensive financial strategy through the universalisation of banking and financial services.

Besides, the application of the outstanding features of chip technology, chip cards to bring appropriate and practical solutions to solve integrated, synchronous and data sharing problems for the economysociety development had also been concerned by the delegates recently.

According to the guidance of SBV, the goal was to have at least 30 percent of ATM cards, 35 percent of ATMs and 50 percent of POS devices by the end of 2019 to comply with the base standards of internal chip card standards. By the end of 2021, 100 percent of the target of converting magnetic cards to chip cards would be completed.

There were many concerned that the goal of 100 percent conversion from magnetic cards to chip cards was challenging to achieve. Besides, deputy prime minister Vu Duc Dam affirmed, making good use of the opportunity from the industrial revolution to not missed opportunity with specific actions was essential. Between chip technology and old-fashioned technology, taking bold steps forward would be necessary not to miss the chance. To do that, of course, required the unanimity and appeal of not only state agencies but also the responsibility of enterprises and banks towards the country and society.

Deputy prime minister Vu Duc Dam also reminded representatives of banks and businesses. If necessary, the development of the country, although costing expensive, in the long term, would be compensated appropriately. By concrete actions from banks and businesses that joined hands for the social advantage, Vu Duc Dam strongly believed that the field of e-payment in particular as well as the application of information technology, taking advantage of the opportunity of the industrial revolution 4.0 would achieve great results.

Sharing more at the forum, deputy Governor Nguyen Kim Anh hoped that after this forum, the parties would continue to enhance learning, exchange and cooperation to promote the development of Vietnam’s card industry following the general trend of the world. At the same time, the timely application of achievements of the industrial revolution 4.0 in banking payment activities would bring people convenience thanks to safer card payment. That would create favourable conditions for banks to develop new modern payment features, opening up domestic card opportunities to expand international integration.

Also, within the framework of the programme was the signing ceremony of a memorandum of cooperation to promote non-cash payments between ministries, branches and units and banks. Besides, two discussion sessions at the forum had given a general picture of the effects of electronic payments on current economic growth and the trend of applying chip technology in the world.


Category: Finance, Vietnam

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