NThe credit limit will be 10 million VND (434 USD) per month for all transactions in each accounts. (Illustrative image. Source: Internet)Hanoi (VNA) - The successful implementation of Mobile Money,a pilot project that will pave the way for payments of limited value to beconducted using telecommunicationsaccounts, is one of the major targets of the Ministry of Informationand Communications (MIC).
The scheme, approved by the Prime Minister, enables money transfers and payments for legal products andservices in Vietnam only, using Vietnamese dong. Cross-border transactions are notpermitted.
The pilot project will be carried out over two years from when the firstbusiness in the field receives permission to launch the service.
The credit limit will be 10 million VND (434 USD) per month for alltransactions on each account.
Approval of the project aims to bolster cashless payments via mobile devices aswell as access to and use of financial services, particularly in rural andremote areas, to capitalise on the country’s telecommunications infrastructureand network.
Project outcomes will act as a foundation for thebuilding of regulations stipulating the operation of Mobile Money services inthe country.
According to Minister of Information and CommunicationsNguyen Manh Hung, this is a major solution to promote cashless payments,creating breakthrough growth in national digital transformation.
Many analysts have said that Vietnam can learn from othercountries around the world in the implementation of Mobile Money, thusoptimising the advantages and minimising the limitations.
However, they also asserted that it will pose challengesto telecommunications firms, especially in ensuring information safety forusers.
Many consumers have found Mobile Money to be convenientand have changed from only using cash, especially young people, who are often stuckto their mobile phones. They also pay great attention to safety and informationsecurity, as well as the level of readiness among telecommunications service providers.
Vietnam has around 129.5 million mobile phone subscriptions,around half of which use 3G and 4G, and 43.7 million people, or 45 percent ofthe population, using smartphones.
Pham Trung Kien, Deputy General Director of Viettel Digital, said that as oneof the leading telecommunications firms to research and invest in activitiesrelated to Mobile Money, Viettel is ready to pilot the service and has met allrequirements set by the Prime Minister. He added that the piloting of the schemehas opened up new and broader payment activities.
Kien said that Viettel will prioritise customers in rural,remote, and mountainous areas, where the finance-banking system has yet to bedeveloped and residents have low access to the banking system.
In order to prepare for the scheme, it has piloted iton 40,000 of its 70,000 subscribers, using high security protection technology.
In the time to come, telecommunications service providerswill bring more Mobile Money services to more customers.
Figures from the State Bank of Vietnam show that thecountry has 89 million private payment accounts, which means 70 percent ofadults have bank accounts./.
VNA
