Non-cash payment via banks seen increasing

HCMC – As three local card networks of Smartlink, VNBC, and Banknetvn have connected with each other, lenders expects non-cash payment made via banks would increase strongly in the future.

Nguyen Van Dung, deputy director of the central bank’s HCMC Branch, told the Daily that the future trend would be payment via banks because lenders had connected their automated teller machine (ATM) systems, which would be the basis to develop points of sale (POS) network in the future.

“Banks’ infrastructure now absolutely enables the POS connection, the remaining problem is the fee between banks,” Dung said.

Ly Thi Ngoc, director of DongA Commercial Bank’s card center, said that given the connection through banks’ ATM systems, banks would share the POS network as one machine can accept different kinds of cards issued by different banks, helping them to cut cost when developing the POS network. That would help banks to widen the POS network in the country, she said.

In addition, money transfer among different banks via ATM would be a certain trend in the future.

Ngoc said DongA Bank has researched to deploy cross money transfer between banks in the VNBC network first which would become truth in the near future. At that time, customers of the VNBC network can transfer money to each others.

Besides payment via ATM, banks have developed payment via other channels such as mobile banking and Internet banking to encourage customers to reduce payment transaction by cash under the Government’s instruction. Those services have attracted many customers.

Le Huynh Ha, head of ATM services at Vietcombank’s HCMC Branch, said that payment revenue via cards of the branch’s customers was now three times bigger than before Tet Holiday. The amount is even six-fold bigger when the banks launched promotion for customers doing payment via cards, he said.

Currently, Vietcombank’s card holders can pay electricity and water bills at the bank’s ATM.

Dung from the central bank’s HCMC branch said that a preliminary report showed payment revenue via banks’ card accounts in 2009 was nearly five times bigger than in 2005, proving the trend of payment via banks.

However, to encourage institutions accepting card payment, the Government should have preferential policy such as lower corporate tax. At this time, when customers pay bills via a bank’s card, the sellers have to pay an amount of money to the bank, which discourages them to accept card payment.

According to Vietnam Banks Association, by early this month, Vietnam has 24 million card holders with 48 issuers, 11,000 ATM, and 38,000 points of sales nationwide.

Source: saigonmoney.com