Cash payment declines by 2 percent in six years

Illustrative image (Source: Internet)

Hanoi (VNA) - Cash as a mode ofpayment has declined in the country by 2 percent in the past six years, from14.02 percent in 2010 to the current 12 percent.

As per the State Bank of Vietnam’s reportreleased this week, the country currently has around 67.4 million bank accountscompared to 16.8 million accounts in 2010.

Modern infrastructure and technology tofacilitate non-cash payments, especially online payments, have developedsignificantly. The number of bank cards has increased by 11.36 percent againstthe end of 2015, to around 111 million now.

There are around 254,000 points of sales(POS) and 17,380 automatic teller machines (ATMs), up 13.77 percent and 5.39percent, respectively, compared to end of 2015.

The central bank has issued many policiesrelating to modern infrastructure and technology to boost non-cash payments, toprotect customer interests, and ensure quality of service.

It has instructed commercial banks toquickly carry out a plan to convert all magnetic cards into chip cards toprevent fraud. Under the plan, all ATM cards will become EMV-standard chipcards by 2020, to reduce risks in e-commerce for both buyers and sellers.

To protect the interests of customers, inOctober 2016, the central bank issued Circular 30/2016/TT-NHNN, which requirescredit card service providers to compensate card owners for loss not caused bythe owners, starting November 28, 2016.

The Government also recently approved apolicy encouraging cashless transactions in Vietnam in order to reduce thenumber of cash-based deals, improve electronic payment methods and control taxevasion.

Under the plan, by 2020, cash transactionsin the country will be account for less than 10 percent of total markettransactions. As per the plan, all supermarkets, shopping malls anddistributors will accept credit cards; 70 percent of water, electronics and telecommunicationservice providers will accept cash-free payments from households andindividuals; and 50 percent of the total urban households will use electronicpayment for daily transactions.

The policy also proposes the development ofnew payment methods for rural and remote areas in order to encourage financialinclusion and increase overall access to services. At least 70 percent ofVietnamese citizens over the age of 15 will have bank accounts by the end of2020. Social welfare and pensions will be paid through electronic paymentmethods.-VNA

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