Vietnam could harness the power of emerging technologies like artificial intelligence (AI) and blockchain to establish a comprehensive payment ecosystem, encouraging the adoption of cashless transactions through enhanced data connectivity.
The State Bank of Vietnam (SBV) has set a goal of making cashless payments account for half of all transactions by 2025. SBV’s top priority will be the development of a robust and inclusive payment infrastructure nationwide. It aims to make digital payments the preferred method of transaction. With an already strongly developed payment infrastructure, Vietnam sees average payments of US$ 40 billion per day. The central bank is drafting a new decree to create a legal framework to promote non-cash payments.
During a seminar held as part of Cashless Day 2023, the Deputy Governor of the SBV, Pham Tien Dung, said that data connectivity plays a pivotal role in unleashing the complete potential of cashless payments. Through the collaborative sharing of data across the ecosystem, SBV can facilitate a payment experience that is both secure and convenient for customers. Additionally, this approach fosters financial inclusion and promotes economic growth, he noted.
SBV intends to make investments in infrastructure and promote innovation to establish an inclusive payment ecosystem that offers accessibility, convenience, and security for all. The Director of the SBV’s Payment Department, Pham Anh Tuan, emphasised the crucial role played by emerging technologies like AI and blockchain in enhancing data connectivity and elevating the overall customer experience.
These technologies enable the automation of payment processes, reducing fraud and errors. Furthermore, they facilitate personalised payment experiences by offering targeted benefits and incentives to consumers, tailoring the payment journey to individual preferences and needs.
Phan Van Mai, Chairman of the People’s Committee, claimed that digital payments are not merely an option but a necessity for the future. To promote cashless payments, Mai proposed specific regulations to accelerate cashless payments, such as transactions above VND 10 million requiring payment via banks, to boost cashless payments.
The city had issued a data strategy, including incentives to encourage cashless payments. The city’s agencies such as healthcare, education, insurance, and transportation have increased cashless transactions. The strategy includes incentives to promote cashless payments. The city is committed to collaborating with business associations and industries to extensively promote cashless payments through widespread publicity campaigns, Mai noted.
According to a report from SBV, over 75% of adults across the country currently possess a bank account. Interbank electronic payment transactions witnessed a significant year-on-year increase of 52.8% in terms of volume during the first four months.
The report showed that payment transactions conducted through QR codes witnessed a quantity increase of over 161% and a value increase of 36.6%. Conversely, cash withdrawals at ATMs continued to decline, with a decrease of 3.5% in quantity and 5.5% in value.
The Cashless Day 2023 seminar attracted over 200 participants, including business owners, government officials, and representatives from the banking and fintech sectors. Additionally, a Cashless Town Festival was organised attracting a diverse collection of merchants, consumers, and technology enthusiasts. It offered various promotion programmes for shoppers and showcased a wide range of cashless payment solutions, including mobile wallets, and QR code payments.
