Applying technology to promote cashless payments

Upgrade and develop modern payment infrastructure

Pursuant to Decision No. 1813/QD-TTg dated October 28, 2021 of the Prime Minister on approving the Project on developing non-cash payments in Vietnam for the period 2021-2025, the People's Committee of Nghe An province issued Plan No. 216/KH-UBND dated March 31, 2022 for implementation in Nghe An province. At the same time, in the period 2021 - 2025, the People's Committee of Nghe An province issued many policies and mechanisms that are consistent, comprehensive and specify key tasks and solutions to suit the situation of the province, including integrating contents, building criteria and models to promote the development of non-cash payments.

The banking sector has directed credit institutions and credit institution branches in the area to propose many solutions and build a cashless payment infrastructure. Upgrade the infrastructure in terms of data processing capabilities, ensure security and safety, add utilities and services in the direction of promoting the application of new technologies, apply standards to improve operational efficiency and service quality, and better meet the payment needs of people and businesses.

Mr. Vo Huy Ha - Director of Vietinbank Cua Lo Bank said: As a pioneer bank in digital transformation and application of modern technology in business activities, VietinBank has made many marks in digital transformation activities with new digital solutions and products that have been widely welcomed by customers such as: Online disbursement and online guarantee issuance for corporate customers on the VietinBank eFAST platform; Unsecured online consumer loans for customers receiving salary payments through VietinBank; Online disbursement for retail customers borrowing for production and business; Smart sales management iShop for customers who are shop owners, small traders, and small businesses on VietinBank iPay Mobile.

It can be said that currently, the technical infrastructure and technology serving non-cash payments, especially electronic payments, card payments, QR codes, etc., are strongly developing; the network of ATMs, POS, and QR code payment acceptance points covers all areas of the province. The payment system applies QR code, NFC, eKyc technology in remote card account opening payment activities. Technologies such as AI/ML, Bigdata, etc. are applied in services and business processes; connecting and expanding the service provision ecosystem via API, Open banking.

The banking sector has focused on investing, upgrading, and developing infrastructure and technology for non-cash payments, expanding the coverage of service points of credit institutions in rural, remote, and isolated areas. Mobile Money services have initially been chosen by many customers, meeting the financial consumption needs of a segment of customers in rural, mountainous, remote, border, and island areas.

The number and value of transactions via Mobile Banking have grown dramatically, becoming the main payment channel, gradually replacing traditional methods such as cash withdrawals at ATMs.

In the period of 2021-2025, the comparison and updating of biometric information via chip-embedded CCCD or VneID application has been completed, contributing to improving safety, transparency and people's trust in the modern payment system.

Along with that, during the implementation phase, the coordination between local commercial banks and the Customs, Tax and State Treasury agencies was promoted, bringing comprehensive results. Tuition payment services, hospital fee payment, electricity and water bill collection... have been implemented without cash, clearly reflecting the trend of digital transformation and modernization of payment services.

Strong shift in digital transformation

According to the leader of the State Bank of Vietnam, Branch 8: Currently, the banking industry is actively developing plans, implementing connections, exploiting population information in the national population database, chip-embedded citizen identification cards, electronic identification accounts (VneID) to serve public services, credit information operations and anti-money laundering; serving socio-economic development in the banking industry; reforming administrative procedures, simplifying business processes to facilitate people and businesses.

The results of the 2021 - 2025 period show that Nghe An has made great strides in developing non-cash payments in all 6 aspects: Essential services, social security, public services, management, banking infrastructure and direct impact on people and businesses. This is an important foundation to promote comprehensive digital transformation, improve the efficiency of state management and better serve the needs of society.

However, the current situation of high-tech crimes and payment fraud is complicated, especially crimes and fraud in card payments, payments via the Internet, mobile phones, contactless payments and high-tech payment methods. That partly increases people's apprehension when making online payments.

In the coming time, it is necessary to continue implementing solutions to promote electronic payments in the public administrative service sector. Build and upgrade technical infrastructure, standardize databases to connect and share information with payment service providers and payment intermediaries to serve cashless payments; promote the implementation of connection and provision of public services on the provincial public service portal. Encourage schools, hospitals, electricity, water, environmental sanitation, telecommunications, postal companies, etc. to strengthen coordination with banks and payment intermediaries to collect fees and charges by cashless payment methods.