The Power of Cashless Payments: Securing a Brighter Financial Future

Mr. Le Anh Dung, Deputy Director of the Payment Department of the State Bank of Vietnam, speaking at the event on May 28, 2024.

At the press conference announcing the Cashless Day 2024 event series on May 28, 2024, Mr. Le Anh Dung, Deputy Director of the Payment Department, State Bank of Vietnam (SBV), said that in implementing the key tasks of the Project for Development of Cashless Payments in Vietnam for the 2021-2025 period, the entire banking industry has focused on building, perfecting institutions and laws, and organizing implementation; promoting the application of new technologies, innovating business models, and cooperating to create and provide safe, secure, convenient, value-added products and services with superior experiences for customers, contributing to accelerating towards a cashless society.

After a period of construction and perfection, the SBV submitted to the Government for promulgation of Decree No. 52/2024/ND-CP dated May 15, 2024, on non-cash payments, replacing Decree No. 101/2012/ND-CP, which will take effect from July 1, 2024.

Decree No. 52 was issued to create a basic and solid legal framework for non-cash payments, promote non-cash payments, facilitate business activities, and provide many new, convenient, and secure payment products and services at a reasonable cost. The SBV is also urgently completing draft circulars to guide Decree No. 52 to create a synchronous and solid legal corridor for non-cash payments, promote non-cash payments, and ensure security, safety, and protection of users’ rights.

Infrastructure serving non-cash payments such as the Inter-bank Electronic Payment System and the Financial Switching and Clearing System has been continuously invested in, improving service quality, expanding utilities, and enhancing processing capacity to better serve the needs of system members, thereby meeting the increasing demands and expectations of end-users, including individuals and enterprises, for banking products and services. The banking industry has introduced new, safe, convenient, and reasonably priced payment methods and services to meet the practical needs of the people and businesses.

According to the Payment Department (SBV), the non-cash payment indices have shown strong growth. The average number of transactions through the Internet and Mobile channels in the 2021-2023 period increased by 52% and 103.3%, respectively; the growth in the number and value of QR Code payments reached over 170%. By the end of 2023, Vietnam had more than 182 million personal payment accounts, and 87.08% of adults owned payment accounts. Regarding account opening through the eKYC method, 40 banks officially reported that they had implemented it, with nearly 35 million active payment accounts opened using eKYC…

The figures for the first four months of 2024 compared to the same period in 2023 show that the non-cash payment indices have increased quite well: non-cash payment transactions increased by 57.11% in volume and 39.49% in value; transactions through the Internet channel increased by 47.48% in volume and 30.2% in value; and transactions through the mobile phone channel increased by 59.26% in volume and 35.91% in value. ATM transactions continued to decrease by 14.15% in volume and 7.84% in value compared to the same period in 2023, indicating a shift from cash to non-cash payments.

Cat Lam

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