Mobile Money to promote cashless payments

14-Oct-2021 Intellasia | Thoi bao ngan hang | 5:53 AM Print This Post

The State Bank of Vietnam (SBV) plans to grant a pilot license to Viettel, VNPT and MobiFone in October. Nguyen Dinh Thang, vice Chair of Vietnam Digital Communications Association said that when Mobile Money comes into operation, it will have a positive impact on the cashless payment activities in the economy.

According to Thang, Mobile Money service will bring effectiveness to people and businesses. People save both time and travel costs when making payments for electricity, water bills or making small value money transfers anytime, anywhere without having to open a bank account. Particularly, for customers in remote and inconvenient areas, Mobile Money will support the ability to access payment and money transfer services without the need to have a bank account. The public service providers that previously had to pay for collection services can save this type of costs.

Thang added that when Mobile Money is licensed, it will not only boost cashless payments but also provide financial inclusion to people because of its convenience. Users can use the money available in their phone’s account to make immediate payment without having to open a bank account or an e-wallet account. The opportunity to develop this service is great and the number of Mobile Money users will surely be high when people, particularly young people all use smart phones. Allowing Mobile Money is one of the important motivations to accelerate cashless payments according to the government’s policy.

Major carriers such as Viettel, MobiFone and VinaPhone, according to the vice Chair of Vietnam Digital Communications Association, have met the conditions to put Mobile money into operation to serve people’s cashless payments. The reason why the decision to pilot Mobile Money was made not as fast as market expectation is that this is a very new service that needs testing time.

Specifically, Mobile Money must ensure safety and security to minimise payment risks. In addition to security technology, the issue of legal framework is very important for the operation of this new service. For example, when it comes to customer information, service providers need to comply with regulations. Customer information must be only used in the field of payment or the allowed fields and should not be used in any service.

Thang said that it takes time to pilot the technology as well as to complete the legal framework for the new service, and all of these factors need to be met in order for the service to officially licensed. Pilot is required for all fields, especially finance. In the previous period, only one or two e-wallets were licensed for pilot. After a period of ensuring safety and effectiveness, the number of e-wallets licensed has increased and e-wallet development has become stronger. The number of e-wallets has now reached a double-digit number.

In Thang’s point of view, Mobile Money will surely increase the competitiveness in the payment market. However, the important thing here is that when more and more units participate in the market, competition will be promoted, people will benefit and there will be more choices of utility services. From a macro perspective, these services will boost cashless payments, creating a strong push to promote digital transformation and digital economy.

 

Category: Finance, Vietnam

Print This Post

Leave a Reply

You must be logged in to post a comment.