Mobile e-money payments are expected to be useful for people living in remote areas due to the ease of use, requiring only an internet connection. Mobile The subject of electronic payments is also currently attracting a lot of attention because it can be used for a wide range of purposes such as health, education, finance, employment and social welfare.
In addition, mobile e-money is gaining popularity not only because of the ability to make payments through mobile e-money accounts, but also because of the ease with which users can transfer money to and from each other without having to tell the other party their bank account.
Mobile e-money High growth in Asia | Vietnam
By the end of 2018, 900 million users will be using mobile payments in more than 90 countries. Transaction value reached US$1.3 billion per day with an annual growth rate of 20%. In Asia, the growth rate is as high as 31%. The legal framework of China, where mobile payments are already widespread, can be used as a reference, and it is also easy to receive technology related to mobile money.
In Vietnam, the proportion of people using credit cards is low and 99% of transactions below VNĐ100,000 are carried out in cash, so poor people in rural and remote areas may not have bank accounts.
As the mobile phone/mobile ownership rate in Vietnam is 100%, mobile payments will support such rural residents in rural areas to make payments and receive financial services easily.
Mobile E-money Promotes Finance | Vietnam
According to Minister Nguyen Mạnh Hung of the Ministry of Information and Communications, there are many legal barriers to the widespread adoption of mobile payments, but if they can be resolved, they will be of tremendous public benefit.
Currently, the Vietnamese government is facing a decision on a driving test for mobile payments. Some fear that if formal permission is granted and telecom operators offer electronic payment services, they will become competitors to banks.
Minister Hung does not envisage transactions with large sums of money as the market for mobile payments progresses, but rather believes that people are more likely to become potential customers of banks in the future. Kenya has seen a 19 percent increase in bank usage in the three years since the introduction of mobile payments, arguing that mobile money will facilitate access to financial services.
The Vietnamese government is likely to set a monthly payment limit of VN10 million ($430) for the introduction of mobile payments. Although there is criticism that this payment limit will slow down the spread of mobile payments, Vietnam as a whole wants to promote it.
Vietnam goes cashless with tax breaks
Vietcombank, a major player in Vietnam with 89 branches, has taken a proactive stance on cashless, and according to Deputy CEO Dao Minh Tuan, the bank should promote cashless through tax incentives.
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