The epidemic was gradually changing the cash payment habit of consumers. Accordingly, electronic payment activities also recorded positive changes.
The data of the State Bank of Vietnam (SBV) showed that the average transaction value via the interbank electronic payment system in the first 20 days of April 2020 increased by 8.85 percent over the same period last year.
If calculated in the first three months, the value of transactions via electronic inter-bank payment systems increased by more than 21%, the total number of transactions via electronic switching and clearing systems increased by 81.32 percent in quantity and 145.32 percent in value over the same period in 2019.
During the period of social isolation under the prime minister’s Directive No. 16/CT-TTg, the payment requirements of the people and society were fully met, online banking services and ATM operated continuously and smoothly.
SBV said that by the end of 2019, transactions via the Internet channel increased by 64 percent in volume and 37 percent in value; transactions via mobile phone channels grew by 198 percent and 210 percent respectively in volume and value compared to the same period in 2018.
According to SBV, the payment trend in the economy had shifted towards using more non-cash payment instruments.
Specifically, the proportion of transactions at ATMs in 2018 through Napas system accounted for 62%, in 2019 decreased to 42%, while the proportion of interbank payment transactions in 2018 was 26%, in 2019 increased to 48%, showing a change in the habit from withdrawals via ATMs for daily spending in cash to non-cash payments via electronic banking channels.
Electronic payments in public services were also more concentrated. By the end of 2019, about 50 banks completed the electronic tax payment connection with the tax authorities and customs authorities in 63 provinces and cities; 95 percent of customs revenues were made via banks; 99 percent of businesses registered for electronic tax payment.
To encourage consumers to pay without cash, especially in the context of the uncontrolled Covid-19 epidemic, banks expected to reduce about 1 trillion dong in payment service fees by 2020, as well as many other incentives.
Currently, there were about 78 organisations implementing payment services via the Internet and 49 organisations providing payment services via mobile phones. At the same time, as of May 2020, 34 non-bank organisations had been licensed by SBV to provide intermediary payment services.
With the potential of the market and the trend of contactless payment increasing, this was a great opportunity for intermediary payment companies to exploit.
Since the beginning of the year, the Covid-19 epidemic had also boost non-cash payment sales through e-wallets. For example, at MoMo Wallet, payment transactions doubled in the first four months of 2020.
Nguyen Ba Diep, vice President, Co-Founder of MoMo Wallet information, cash verified by scientists showed that there were many types of bacteria and viruses that could be transmitted through manual contact.
Meanwhile, the Corona virus was spread through casual contact, and cash was likely to cause a disease outbreak if someone were unknowingly infected and transmitted the virus to the cash through contact.
To protect public health, experts recommended users turn to electronic transactions to limit direct contact with objects that contained viruses such as cash.
Pham Tien Dung, director of Payment Department (SBV), said that to further promote non-cash payment activities in the near future, SBV determined to continue building and supplementing the legal corridor for e-payment to meet the requirements for new business models, products and services based on information technology, with a focus on digital banking and digital payment.
