Empowering SMEs to Embrace the Latest Payment Trends
In 2024, smartphone usage in Vietnam continues to rise, with 84.4% of mobile phone users adopting these devices (surpassing the global average of 63%). Alongside this, there is a growing preference for cashless payments, with individuals seeking faster, modern, and secure transaction methods.
Notably, Visa’s 2023 SMB study revealed that nearly 75% of Vietnamese small and medium-sized enterprises (SMEs) accept digital payments, with 42% accepting card payments. This shift is driven by the simplicity, impact on sales, and enhanced security that card payments offer compared to traditional bank transfers. SMEs also appreciate the transparency in fees, robust security, easy integration, and offline payment options in areas with poor connectivity.
However, according to the State Bank of Vietnam, the country’s demand for POS devices stands at 1.2 million units, while only 430,625 machines were in use as of March 2023 (just over 30%). This indicates a significant gap in the market, with an estimated need for an additional 800,000 POS devices to support cashless transactions.
To address this need, VNPAY and Visa have joined forces to offer SMEs a compelling opportunity to stay ahead of the curve. By adopting the VNPAY SoftPOS solution, businesses can optimize costs, enhance management efficiency, and boost their competitive edge. This technology is already prevalent in supermarkets, retail stores, and countries such as China, Japan, India, the US, Canada, Germany, the UK, and France.
Ms. Nguyen Anh Tuyet, Deputy General Director of VNPAY (left), and Ms. Dang Tuyet Dung, Visa’s Country Manager for Vietnam and Laos (right), seal the partnership.
Ms. Dang Tuyet Dung, Visa’s Country Manager for Vietnam and Laos, shared: “The SoftPOS solution marks a joint effort by Visa and VNPAY to introduce innovative payment methods. With this solution, we aim to boost business growth by reducing equipment costs and enhancing user experiences while meeting the rising demand for contactless payments in Vietnam. At Visa, we are committed to continuously expanding and offering initiatives to support SMEs in keeping up with the digital payment trends of both businesses and consumers.”
Traditionally, merchants had to incur costs for purchasing POS machines. However, with VNPAY SoftPOS, a seller’s mobile phone can be transformed into a POS device, processing contactless card transactions via NFC. This innovation helps businesses save on investment costs, eliminates the need for additional hardware, enhances mobility, and facilitates online service upgrades.
VNPAY SoftPOS, integrated with VNPAY Merchant, enables businesses to utilize their mobile devices as a “one-touch” payment solution. It supports a range of contactless cards, including Visa, Master, JCB, and Napas, as well as mobile wallets such as Samsung Pay, Google Pay, and Apple Pay. This aligns with the surge in popularity of contactless payments in Vietnam, with an acceptance rate of 39% as of October 2023, according to Visa’s research.
Professionalizing SME Operations
Many businesses struggle to find a comprehensive solution that encompasses both payment processing and operational management. By signing up for VNPAY SoftPOS, enterprises not only embrace modern payment trends but also unlock a host of additional benefits.
VNPAY offers a detailed and transparent reporting system through the VNPAY Merchant app, enabling business owners to effortlessly manage cash flow from various payment methods, stay updated on transaction status at all times, and make informed decisions for their sales outlets.
Additionally, VNPAY provides special fee discounts to support SMEs and new merchants, such as reduced card payment fees or waived management fees.
Image: Businesses managing transactions through the Merchant App.
Mr. Niraan De Silva, CEO of VNLIFE and Vice Chairman of VNPAY’s Board of Directors, stated: “Our collaboration with Visa marks a significant milestone in our mission to innovate and provide leading payment solutions to merchants in Vietnam. This technology not only simplifies transactions but also reduces costs and enhances security for businesses of all sizes. At VNPAY, we are committed to driving digital transformation and supporting the growth of merchants by offering advanced, reliable, and convenient payment solutions.”
VNPAY is the first company in Vietnam to achieve technological autonomy in SoftPOS and the first to obtain the PCI CPoC certification from the Payment Card Industry Security Standards Council. With VNPAY SoftPOS, the expectation is to fuel even greater growth in Vietnam’s payment industry in the future.
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