"Shake hands" to push back cash in payments

Vietcombank cooperated to collect personal income tax at the Tax Department of Ho Chi Minh City. Photo by Nguyen Hue.

Towards utility for customers

Recently, HCMC Co-operative Trade Union - Saigon Co.op signed a comprehensive cooperation with VietinBank and launched the Visa Paywave co-branded card. Linking not only helps units to add up to increase the total number of clients per unit but also helps to reduce marketing costs and associated costs to focus on increased direct benefits to the customer. Accordingly, when using the Visa Paywave co-branded card, customers will be able to use modern payment services of Vietinbank such as non-stop toll payment, online payment, hospital fees, taxi fare Invoices for electricity bills, telecommunication, taxes, train tickets, SMS Banking, payroll services, tuition fees, savings deposits at ATMs etc. In addition, customers are also entitled to benefits from the Program Intimate customers Co.opmart are widely applied in the retail system of Saigon Co.op across the country such as points accumulation, trade discounts, participating in exclusive promotions, purchase of preferential price reserved, receive birthday gifts, Tet gifts and join promotions for co-branded card that regularly coordinated implementing by VietinBank - Saigon Co.op and Visa.

Previously, Saigon Co.op also issued co-branded cards with Vietcombank, BIDV and DongA Bank. Many other retailers also shake hands with the bank to issue co-branded cards to customers. In particular, Takashimaya partnered with Saigon Card - Takashimaya - Vietcombank card counterpart while Lotte Mart in cooperation with Maritime Commercial Bank of Vietnam issued Lotte - Maritime Bankcard; Aeon linked with Vietcombank put into use Aeon card Vietcombank.

From the beginning of August 2017, customers buying gasoline at 2,400 Petrolimex stores nationwide can also pay by ATM card via POS machine located here. There are 41 member banks belonging to the NAPAS Card Alliance (Vietnam Payment Clearing Joint Stock Company) accepting card payments for Petrolimex customers. Many other companies also cooperate with banks to implement many promotions to encourage customers to spend, purchase services through the card when buying air tickets, electronics etc.

In the field of public services, in early July, the National Online Bidding Center combined with VietUnion officially launched public administrative services, allowing people to pay online to complete the records that do not take time to register. The online payment channel of the National Bidding Center (the Department of Procurement - MPI) is being implemented at muasamcong.mpi.gov.vn. This connection allows legal entities nationwide to register for bidding through the national bidding network, which can pay corresponding fees via Payoo through payment methods such as domestic ATM cards, Mastercard, Visa or electronic wallet. In addition, with the trend of promoting online public services, VietUnion has extended the connection to the administrative agencies to provide payment utility. Payoo online payment service has also successfully connected to the Electronic Entry and Exit Portal at evisa.xuatnhapcanh.gov.vn, an e-Visa channel for foreigners in Vietnam. Payoo also connects with the Department of Industry and Trade of Ho Chi Minh City to provide one-stop public services to help people, businesses pay fees online. In addition, many banks have also implemented fee collection services, hospital charges, electricity bills etc., via electronic payment channel.

Recently, the SBV has also requested banks, foreign bank branches, and NAPAS to work closely with social insurance to promote electronic payment in combination with collection and payment of social insurance, health insurance, unemployment insurance.

Increasing proportion

According to statistics, there are 65 commercial banks providing internet banking services, 35 commercial banks providing mobile banking services and many intermediary organizations providing electronic payment services. Thanks to the rapid development of electronic payment services, the share of payment in cash/total payment method has decreased to about 12% by over 14% in 2010. With the current growth rate, experts estimate that by 2020, this proportion will fall below 10%.

At the Electricity Corporation of Ho Chi Minh City (EVN-HCMc), the unit has linked with 22 commercial banks and 8 intermediary fintech companies to make an electronic payment. By the end of July 2014, nearly 1.7 million EVN-HCMc customers had made electronic payments via commercial banks and other forms of intermediary payment. EVN-HCMc's revenue from electronic payment now accounts for about 60% of its revenue. The unit is continuing communication to strive for 2020, this rate will reach 100%.

The enterprises also said the electronic payment will help save time in the payment process and minimize the risk of errors in counting, counterfeit money. Meanwhile, in order to attract customers to use the service, banks need to offer competitive fees and maintain a modern, secure and convenient platform for transactions. In addition, experts also noted that customers who use the service should have sufficient knowledge of electronic payments to avoid being infected by malicious code or be exploited by predators to lose money as some cases have happened recently. In addition, for debit cards, due to the "spend before, pay later" feature, are exempt from interest for a period, so customers need strict control every time "swipe cards". Because of overdue payment, customers will be charged high-interest rates.