Hanoi’s banking sector pushes for non-cash payment

A network of 90,000 of points of sale (POS), electronic funds transfer at point of sale (EFTPOS), and electronic data capture (EDC) is established, while over 2,780 ATMs are installed across Hanoi.

Hanoi’s banking sector has been pushing for non-cash payment as part of the government’s plan to promote a cashless society in the 2016 – 2020 period, Hanoi’s portal reported. 

 

Illustrative photo.

As of present, a network of 90,000 of points of sale (POS), electronic funds transfer at point of sale (EFTPOS), and electronic data capture (EDC) is established, while over 2,780 ATMs are installed across Hanoi. 

Such network is expected to continue expanding along with other financial services, enhancing people’s accessibility to banking services and realizing the target of promoting non-cash payment in Hanoi. 

Commercial banks in Hanoi have been prioritizing applying technologies for speedy development of new banking services, particularly interbank e-payment, electronic funds transfer, e-wallet, QR Pay, among others. 

Moreover, intermediary payment service providers and commercial banks are cooperating with state budget collectors, such as customs, social insurance tax authorities, and public services to help customers making online payment conveniently and smoothly through their respective online payment channels. 

Nguyen Minh Tuan, director of the State Bank of Vietnam (SBV) – Hanoi branch, said the authority has been promoting non-cash payment in state budget management, social insurance and health insurance. 

Notably, customers are now able to pay tax through commercial banks, contributing to higher rate of non-cash payment in public services and lower rate of cash payment through the State Treasury, Tuan added. 

According to Tuan, the SBV-Hanoi branch is working with Hanoi’s Department of Education and Training to promote paying tuition fees via non-cash payment methods. 

Under the plan on non-cash payment in Vietnam in the 2016 – 2020 period approved by the prime minister, by the end of 2020, the ratio of cash transactions will be reduced from 90% in 2016 to below 10%. 

As of present, just 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34)