Cashless payment develops rapidly in VN amid security concerns

A payment conducted via mobile banking. The theme for Cashless Day 2024 is 'Promoting safe and secure non-cash payments.' — VNA/VNS Photo Bích Huệ

Non-cash payments continue to grow rapidly in Việt Nam, requiring a focus on ensuring payment security, a representative of the State Bank of Việt Nam said at a press conference on Cashless Day 2024 held on Tuesday in HCM City.

The theme for Cashless Day 2024 is 'Promoting safe and secure non-cash payments.'

According to Lê Anh Dũng, Deputy Director of the Payment Department under the State Bank of Việt Nam, there are 182 million personal payment accounts in Việt Nam as of the end of 2023, with 87.08 per cent of adults owning payment accounts. More than 147 million banking cards are in circulation and 32.77 million e-wallets are active.

Payments conducted via the internet and mobile banking increased by 52 per cent and 103.3 per cent in the 2021-23 period, respectively. Payments via QR Code jumped by 170 per cent.

In the first four months of this year, cashless payments rose 57.11 per cent in volume and 39.59 per cent in value over the same period last year, while transactions via ATMs dropped by 14.15 per cent in volume and 7.84 per cent in value.

Along with the boom in non-cash payments, ensuring security is critical, Dũng said.

Banks have been promoting electronic Know Your Customer (eKYC) verification technology.

The State Bank of Việt Nam has decided that online banking transactions of VNĐ10 million or higher must be verified by biometric authentication.

Dũng said that this regulation aims to protect users, not cause difficulties.

Nguyễn Hoàng Long, Deputy Director of the National Payment Corporation of Việt Nam (NAPAS), said that NAPAS is drafting a set of coordination procedures for banks based on the established regulations, so that banks can coordinate to handle transactions with signs of fraud.

Cashless Day on June 16, an annual event started in 2019, is organised by the Payment Department under the State Bank of Việt Nam and Tuổi Trẻ (Youth) Newspaper.

A conference on enhancing the security and safety of cashless payments will be held on June 14.