The Future of Cashless Transactions: SmartPOS & SoftPOS Solutions for Small Businesses and Merchants

In late March 2024, Visa, the world’s leading electronic payment technology company, released new insights into the payment context in Vietnam in its 2023 Consumer Payment Attitude Study Report. The report highlights a growing preference for modern electronic payment methods in the country.

According to the report, 56% of surveyed Vietnamese users are carrying less cash than they did the previous year, indicating a proactive embrace of new financial technologies. Notably, young people are at the forefront of this shift, with 89% of respondents successfully adopting digital payment methods in their daily lives.

In fact, cashless payments have become commonplace across all aspects of life.

For consumers, having a diverse range of cashless payment options has become a convenient habit, eliminating the need to carry cash. “I don’t need to carry cash anymore,” shares Lan Anh from Ho Chi Minh City. “All my expenses can now be quickly and conveniently transferred. Whether it’s for groceries, household items, or clothes, all stores accept QR payments, card swipes, or at least bank transfers.”

For merchants and small businesses, it is essential to diversify their payment methods to cater to the varying preferences of their customers. In a context where consumers can get used to paying in their preferred way, merchants and small businesses must also adapt quickly to stay competitive.

“The customer is always right,” says Thanh Ngân, a fabric stall owner at Ben Thanh Market in Ho Chi Minh City. “If they want to pay by QR code or POS, or even by bank transfer, we have to accept it to keep them happy. These methods are faster, safer, and more convenient for both parties. It also means I don’t have to carry a lot of cash to restock, and it’s easier to keep track of my revenue through online banking.”

However, there are constraints and relatively high costs associated with POS machine payments. For small businesses, the burden of these costs can be significant: the purchase of a POS machine can cost up to 10 million VND, and renting one from an intermediary payment unit incurs transaction fees ranging from under 1% to 2% for domestic ATM cards and 2% to 2.5% for international cards (VISA, MasterCard, etc.). This remains a barrier for many small merchants.

The Rise of Cashless Payments

Convenient Cashless Payment Solutions for Merchants and Customers

To meet the diverse needs of customers and provide them with flexible, convenient, and fast payment options, some banks have taken the initiative to offer innovative payment solutions for merchants and small businesses. Among these are SmartPOS and SoftPOS, two leading cashless payment solutions in the market today, introduced by Techcombank.

“At Techcombank, we strive to understand the challenges and needs of small business owners and merchants,” shares a bank representative. “We continuously invest in research and develop solutions tailored to their unique requirements. Our payment solutions are regularly updated to keep up with user trends and the realities of small-scale payment acceptance. As a leader in technology investment, we are committed to providing the best cashless payment options to empower our customers and offer them exceptional value and experiences.”

With SoftPOS, merchants can accept multiple payment methods without the need for a dedicated POS device. By installing the Techcombank ePOS application, their Android smartphone or tablet becomes a powerful tool for accepting QR code and contactless card payments, thanks to integrated NFC (near-field communication) technology.

This solution is ideal for businesses with fewer than five outlets. It enables users to install the application on their smartphones or tablets, accept international (Visa, Master) and domestic cards, support contactless payments, and issue electronic receipts. Additionally, it offers 100% free QR transaction fees and preferential card transaction fees for annual sales below 1.9 billion VND.

Alternatively, merchants can opt for SmartPOS, a 2-in-1 payment solution that integrates multiple cashless payment methods into a single device. This option is better suited for businesses with five or more outlets, offering a dedicated payment device that accepts international (Visa, Master, JCB) and domestic cards, supports card swiping and contactless payments, and provides both electronic and paper receipts.

With SmartPOS, transaction processing fees are competitively priced, and the more transactions a merchant processes, the lower the fees become. Techcombank also offers a free device rental for the first year, with a rental fee of only 200,000 VND per month from the second year onwards.

To encourage the adoption of these solutions, Techcombank is offering attractive discounts to merchants who sign up for SoftPOS. Transaction fees for card payments are as low as 0.5%, and the bank is waiving all service fees until December 31, 2024, along with 100% free transaction processing fees for the same period.

In the 12 months since introducing these personalized value propositions to merchants and small businesses, Techcombank has received positive feedback from over 600,000 merchants and small businesses nationwide, especially during the first half of 2024. The average monthly growth rate of new merchant accounts in the first six months of 2024 was an impressive 45%. With its market-leading modern payment solutions, Techcombank continues to be the preferred choice for businesses seeking to thrive and grow.