‘Smile to Pay’: The Future of Seamless Payment Experiences

With a simple smile, customers can now pay online without having to enter any information or PIN. This innovative payment method, as announced by NAPAS Chairman, Mr. Nguyen Quang Hung, will be officially launched soon.

Administrator

28 September, 2024

A New Era in Payments: Embracing Digital Innovation

The future of banking lies in digital technology, with a focus on innovative payment methods such as Tap to Pay, Tap to Phone, QR codes, e-wallets, and mobile payments. These advancements, coupled with electronic customer identification (eKYC), are driving the growth of Vietnam’s digital economy.

Additionally, a new payment technology known as Smile to Pay utilizes customers’ biometric data and facial recognition to authenticate transactions, offering a secure and seamless experience.

At a press conference for the Vietnam Card Day 2024 event, Mr. Nguyen Quang Hung, Chairman of the Board of Directors of the National Payment Corporation of Vietnam (NAPAS), shared insights into this revolutionary technology. With Smile to Pay, banks can register customers’ facial data to their card accounts. This enables customers to make payments simply by scanning their faces, eliminating the need for PIN codes or additional personal information. This method not only enhances the user experience but also bolsters security and protects against fraud.

Mr. Nguyen Quang Hung, Chairman of NAPAS. Photo: Nhu Y

Mr. Hung emphasized that NAPAS will introduce this cutting-edge technology at the Vietnam Card Day 2024 event, taking place on October 5-6 in Hanoi. He explained, “The essence of this technology is a payment card integrated with facial recognition. Customers can simply smile at the camera to authorize transactions without the need for a physical card. This is a new global trend, and NAPAS is poised to officially launch it in the near future.”

Furthermore, banks are implementing 3DS standards for card payments in the e-commerce environment. By analyzing customers’ historical transaction data, banks can streamline the authentication process, potentially waiving the need for OTP confirmation for trusted users.

The digitization of payment cards has led to the emergence of mobile wallets, transforming smartphones into versatile payment tools. Additionally, soft POS technology allows merchants to turn their smartphones into payment acceptance devices, expanding the reach of digital payments.

According to NAPAS’s payment data for the first half of 2024, quick money transfer transactions (247) through the NAPAS system witnessed a 45% growth in transaction volume and a 29% increase in transaction value.

Meanwhile, ATM cash withdrawals continued their downward trend, with a 23% decrease in transaction volume and a 22% drop in transaction value. This shift indicates a growing preference for cashless transactions and a reduction in the reliance on physical currency.

Biometric Registration: Simplifying the Process

Mr. Pham Anh Tuan, Director of the Payment Department of the State Bank of Vietnam (SBV), acknowledged the challenges in collecting and verifying biometric information, especially for customers who are less tech-savvy.

However, the SBV has issued guidelines mandating credit institutions to provide support to customers at branches or through alternative means of biometric data collection while ensuring compliance with security, safety, and data privacy regulations as per the Government’s Decree 13.

Mr. Pham Anh Tuan, Director of the Payment Department, SBV. Photo: Nhu Y

Vietcombank has taken the lead in this regard by adopting VNEID for biometric data collection, offering a convenient and secure method that does not require NFC or physical devices. This approach has made it easier for customers to verify their identities.

Mr. Tuan expressed optimism about the future, stating, “As more and more service providers collaborate with C06 (Ministry of Public Security) to implement this solution, we expect the challenges associated with biometric data collection to diminish significantly.”

Ms. Doan Hong Nhung, Member of the Executive Board and Director of Retail Banking at Vietcombank, commended the robust development of Vietnam’s digital payment infrastructure. She acknowledged the SBV’s proactive guidance to commercial banks in ensuring a solid technical foundation for digital payments.

“In addition to the traditional payment system, new payment methods and those based on big data and common information under the Project for Development of Application of Population Database, Electronic Identification and Authentication to Serve the National Digital Transformation Program for the period of 2022-2025, with a vision to 2030, are creating a significant boost, especially with biometric authentication,” she added.

Ms. Nhung also highlighted the swift response of commercial banks in addressing the new requirements set by the SBV and NAPAS, underscoring their commitment to staying at the forefront of digital transformation.

When it comes to securing cashless payment transactions, Vietcombank’s representative emphasized the paramount importance of information security for both users and service providers. She stressed the need for vigilance and adherence to bank recommendations to prevent fraud and ensure the safety of personal information.

Additionally, users should exercise caution and remain alert to potential scams, taking proactive steps to safeguard their financial well-being.