ATM transactions are decreasing.

Pay with QR code and e-wallet anytime, anywhere.

Previously, ATM locations were always crowded with people withdrawing cash, especially during holidays and Tet (Lunar New Year), with long lines of people waiting for their turn. Some people had to wait for hours before it was their turn. However, recently, observations on the main streets of Vinh City show a noticeable emptiness at bank ATMs, with only occasional customers.

Mr. Nguyen Huu Quang, residing in Ha Huy Tap ward, Vinh City, stated that 4-5 years ago, ATM cards were quite common. In urban areas, district and commune centers, around hospitals, bus stations, supermarkets, etc., there were ATMs, allowing for immediate cash withdrawals. However, the drawback was that the high volume of transactions meant that ATMs were always crowded, sometimes requiring long waits and wasting time. Another inconvenience was that incorrect password entry could result in the ATM machine swallowing the card, causing further problems.

In line with the cashless policy, various sectors and citizens are adopting digital transformation. All money is stored in e-wallets, and payments are made by scanning QR codes, making transactions much more convenient than ATM cards. In Vinh City, most businesses and shops now have QR codes for customer payments. This is convenient because the process is quick and accurate; moreover, it avoids the risks of carrying large amounts of cash. Therefore, for many years, Mr. Quang has rarely used his ATM card and seldom withdraws money from ATMs.

In towns and cities throughout the province, ATM locations are consistently deserted. Ms. Tran Thi Phuong from Tay Ho hamlet, Nam Thanh commune (Yen Thanh district) said that since installing the banking app on her smartphone, and with grocery stores, gas stations, restaurants, pharmacies, barbershops, car washes, and even electricity bill payment services in the area using bank QR codes, she rarely goes to ATMs to withdraw cash as she used to.

“Previously, shopping and paying utility bills directly often required going to the collection points. Now, I use online banking services, which is very convenient. Whether at home or anywhere else, I can pay my electricity and water bills, my children's school fees, or shop online. Therefore, although I have three ATM cards in my wallet, I rarely use them,” Ms. Phuong shared.

Payment by QR code scanning has become a habit for most people, so for vendors who haven't adopted QR codes, it becomes outdated and inconvenient for customers.

Ms. Nguyen Thi Huong, a pharmacist selling medicine in the Roc market area, Trung Thanh commune (Yen Thanh district), said that more and more customers are paying for medicine via QR code. Therefore, at the beginning of 2024, she opened a bank account and implemented QR code payment right at her pharmacy counter, finding it very convenient.

"Before QR code payment was implemented, I always had to prepare small change to give to customers. Now, most customers pay via QR code scanning, which is convenient for both parties. Payment via bank transfer helps me reduce the risk of losing cash or receiving counterfeit money," Ms. Huong said.

Regarding cashless payments, Mr. Nguyen Van De, Chairman of the People's Committee of Long Thanh commune (Yen Thanh district), said: "As a locality that achieved the model new rural standard in digital transformation in 2024, the people have also updated technological trends quite quickly. Businesses ranging from grocery stores to other shops in Long Thanh commune all have QR codes for customer payments."

Currently, up to 90% of the people in the commune use smartphones and have broadband internet access; essentially 100% of adults have cashless payment accounts to conduct transactions, purchases, and other payment services. 100% of businesses in the commune have QR codes from banks to facilitate cashless payments.

A decrease in ATM transactions is inevitable.

Investigations at several bank branches in Yen Thanh, Dien Chau districts and other localities show that the number and value of transactions at ATM withdrawal points have decreased significantly.

Representatives from several banks stated that in recent years, QR code payments have become increasingly popular, resulting in relatively empty ATMs and fewer queues compared to the past. However, banks are still maintaining a stable supply of cash in ATMs to serve customers.

Ms. Nguyen Thi Thu Thu – Director of the State Bank of Vietnam's Nghe An branch, stated: "Transactions via ATMs are connected through the system between banks, so the State Bank of Vietnam's Nghe An branch does not yet have specific statistics on the number and value of ATM card transactions currently. However, with the increasing number of people using cashless payments, it is certain that the number and value of ATM card transactions will decrease significantly compared to before. With its practical benefits, cashless payment is an inevitable development trend in the 4.0 era."

However, according to our observations, in Nghe An province, particularly in mountainous districts and high-altitude areas, the percentage of people using cashless payments is still low. This is due to the fact that people are not yet proficient in using smartphones or do not have the means to purchase them.

Therefore, all levels and sectors need to strengthen propaganda and guidance for people in mountainous areas to access technology and apply cashless payments with simple operations, in order to reduce the use of cash and prevent malicious individuals from exploiting it to circulate counterfeit money.