Vietnamese government will improve legal system and promote cashless payment

Cashless payment is the future direction of the society. Promoting cashless payment helps prevent corruption, tax evasion, money laundering and other behaviors. However, this method of payment is currently facing many obstacles, so the state bank of Vietnam will continue to take measures to promote cashless payments.

Cashless payment refers to the ability to pay in cash can be used in electronic payments, so that “no cash” into the mainstream payment method.

Cashless is not about “eliminating cash”, but about making payments free of the constraints of cash, allowing people to carry their phones without cash.

According to a recent survey, Vietnam overtook Singapore and Malaysia in terms of cashless payments. The proportion of people using mobile payments in Viet Nam increased from 37% in 2018 to 61% in 2019.

The Momo payment app is one of Vietnam’s most popular e-wallet apps. The service allows customers to pay bills, send money or buy goods at more than 100,000 payment points across Vietnam, including OK convenience stores (Circle K) and Ministop stores.

Another mobile payment App,-ZaloPay, has grown rapidly since its inception in 2017. The app is attached to the 100 million user network registered with its parent company, VNG-online social entertainment platform.

However, there are still many obstacles to the promotion of cashless payments, owing to the fact that people’s consumption habits and electronic payment infrastructure are not yet perfect. In the coming time, Vietnam will continue to improve the legal system and vigorously promote cashless payments.

The Vietnamese government has asked the central bank to introduce new measures to encourage people to use e-wallets, such as allowing them to be recharged without a bank account, and approving a pilot project to allow money transfers and purchases of small transactions through mobile accounts.