Coronavirus provides opportunity to accelerate non-cash payment

Today there are a wide range of convenient and safe electronic payment solutions available to consumers to replace cash payments in Vietnam. The State Bank of Vietnam has directed the National Payment Corporation (NAPAS) and commercial banks to reduce service fees and enhance their service quality so as to best serve the payment demands of consumers and enterprises.

Although such fee cuts will eat into the revenues of NAPAS and banks, they remain committed to supporting their customers and encouraging the adoption of electronic banking services and restricting transactions at counters as a measure to prevent the spread of Covid-19, thereby helping to change the public’s habit of relying on cash.

E-commerce enterprises are also being facilitated in the promotion of online sales and cutting operating costs. After two rounds of fee cuts in 2020, banks in Vietnam have reduced fees for their customers by a total of VND560 billion (US$24 million).

For their part, commercial banks consider this as an opportunity to promote non-cash transactions along with online payments and savings. Many have made great efforts to reduce fees for online bank transfers and improve their online services and banking apps.

Fintech firms with electronic wallet products have also cautioned against using cash and encourage the use of electronic means to minimise the risks of contact with pathogens.

Another popular channel of payment during the coronavirus outbreak is using contactless cards. This method is not only simple but also secure as the card never leaves its owner during transactions.

As such, promoting non-cash payment is not only the government’s policy but also an increasing trend, especially with the whole world joining hands to prevent the spread of the coronavirus.