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There’s a need to standardise credit-card use, risk management
The Central Bank’s Department of Payment director Bui Quang Tien discusses the development of modern banking technology with Hai Quan (Customs) newspaper.
How is modern payment technology being developed by banks?
Bank cards have become a favourite payment method for many people. By the end of April, more than 16 million cards had been issued by 41 card issuers.
There are 175 types of cards. More than 98 per cent are debit cards and 1.8 per cent are credit cards.
There are more than 8,000 ATM (Automated Teller Machines) cards and 27,000 POS (point of sale) devices.
Together with the issuing of multi-purpose cards and investment in more POS units for taking card payments, trade banks are starting to pay more attention to card safety and security.
Some have issued cards with high safety and security, such as chip card EMV, to offer customers more convenience.
Payments on the internet and by mobile or SMS have also been introduced by trade banks to serve a wider range of customers.
What is the quality of this service?
Vietnamese banks are mainly issuing magnetic cards. The maintenance of magnetic card readers has weaknesses and there is a risk of fake cards being used.
Common standards for bank cards have not been established for banks to avoid technical bugs.
The transaction companies, Viet Nam National Financial Switching Joint Stock Company (Bank-netvn), the Smartlink Card Service Join Stock Company and the DongA Bank’s Viet Nam Card Network, increase competitiveness among banks but system compatibility is not high, thus reducing the growth of bank cards.
The State Bank has given permission to some issuers that are not credit companies to supply an E-wallet service. How has this been introduced?
E-wallet, an electronic account, functions like a wallet in the digital world. They allow users to make transactions and online payment at e-commerce websites.
During a pilot period, the State Bank requires all e-wallets to be identified and deposits and withdrawals must be through payment service suppliers.
The service is under State Bank management before it is introduced nationwide.
Are there many obstacles to supplying modern payment methods?
A legal corridor for modern payments is lacking and vague. Although commerce banks have been trying to modernise their payment systems are not compatible.
This restricts the convenience of payment methods and modern methods payments for water, electricity and telephone accounts has not been widely implemented.
Online payment services, such as mobile banking, internet banking and e-wallet, are mainly used for deposits for pay-in-advance mobile phones.
Online payment services have not been implemented widely to meet customers’ demands. Using cash remains popular.
What should be done to develop payment methods?
To avoid the threat of being backward, compared to other countries, we need to shorten the development process and learn from other countries.
Perfecting a legal framework for payment activities needs amendments to the laws and Government decrees and decisions on the issue.
Changes should focus on licence issuing, management and risk prevention for new payment methods, such as payment service through non-credit organisations, and e-commerce services.
There is a need to foster a technical infrastructure and develop IT applications to improve banking services and a pressing demand for a common standard for chip cards and the management, issuing and use of cards.
VietNamNet, VietNamNews
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