70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vietnam's US$700-million cashless payment network to be operational next year
Nguyen Tung 15:51, 2019/11/07
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).

A US$700-million cashless payment network, jointly developed by South Korean payment servicer Alliex and the State Bank of Vietnam (SBV), is scheduled to become operational in 2020 and expanded over five years, Nikkei Asian Review reported.

 Illustrative photo.

As part of the plan, Alliex has signed agreements on providing point of sales (POS) with local banks, including Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank).

The system is part of a broader effort to realize the Vietnamese government’s plan on non-cash payment in the 2016 - 2020 period approved by the prime minister, aiming to reduce the ratio of cash transactions 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).

The core system will serve as a platform for electronic payments and bookkeeping. Tablets will be distributed to stores where the devices can be used to process QR payments and other cashless options.

In a meeting with Director of Alliex Part Byounggun on September 19, Deputy Prime Minsiter Vuong Dinh Hue said the the non-cash payment market has huge potential for development in Vietnam, and requested Alliex to closely cooperate with the Vietnamese central bank in finalizing an ecosystem for non-cash payment activities in Vietnam.

The Vietnamese government has issued policies on e-invoice and payment via bank cards, among others, while targeting an advanced level of public online services for online payment and processing administrative procedures in the internet, said Hue.

Alliex, wholly owned by a parent based in Japan, envisions earning fees from each transaction.

South Korea boasts one of the most advanced cashless societies with penetration exceeding 90%. As a mid-tier player in the market, Alliex is behind the payment systems used by Lotte group stores and South Korean Starbucks outlets. Overall, its payment systems oversee over US$700 million in transactions a year in South Korea.

TAG: Vietnam SBV Alliex South Korea non-cash payment POS QR payment
Other news
21:52, 2024/05/27
C.bank not considering dropping credit growth quota for fear of rising bad debts
Given the unique economic conditions of Vietnam, if banks increase credit growth without control measures, the system could return to the hot credit growth period seen before 2011.
18:20, 2024/05/09
Vietnam's non-cash payments reach US$9.8 trillion, 23 times GDP
Many of the banking industry's digital transformation goals for 2025 are on track to be met or exceeded.
21:53, 2024/05/04
PM urges Central bank to ensure positive growth in 2024
Local lenders are encouraged to provide incentives and attract individuals to take out consumer loans.
17:07, 2024/05/03
Vietnamese Gov't to continue VAT cut for second half of 2024
If the VAT reduction policy is continued for the last six months of the year, the total revenue loss for 2024 is projected to be approximately VND47.5 trillion (US$1.87 billion).
21:54, 2024/04/23
3,400 taels of gold purchased at the first-in-11-year auction
Gold trading firm SJC and lender ACB are the two successful bidders at the auction held today.
16:19, 2024/04/22
HoSE to launch KRX-developed transaction system in early May
Brokerage firms are expected to prepare data for the transition to the new system.