Accelerating digital payment, towards a cashless society
In recent years, with the development of the internet and electronic devices, consumer behavior has changed a lot. In particular, the payment of public services, hospital fees, tuition, electricity, water … has turned to non-cash payments.
In addition, the customs declaration and payment of taxes has also moved to electronic form. In addition, the development of e-commerce has made cashless payments more common in the economy.
Recently, the Government has allowed the use of telecom accounts in payment of digital services related to small-scale e-commerce, making cashless payments increasingly closer to the population.
Especially, in 2019, according to data from the Payment Department – State Bank, the amount of payment via bank cards increased by about 19%; transaction payment, finance via the internet … increased by 66%. Since then promoting non-cash payment via the internet, smartphones made this payment method increased sharply in both quantity and value of transactions.
Are the current infrastructure and technology able to support non-cash payments?
In order to meet digital payments, technology infrastructure is currently insufficient and weak. Specifically, the use of the internet and digital payment is mainly only in big cities, while in rural, remote areas, the market is still vacant. In addition, most of the payment activities involve the technology of foreign investors, domestic investors are relatively few. Most domestic Fintech (technology and financial) enterprises are newly established, thus lacking experience, limited financial capacity, thus facing many difficulties.
This is a difficult problem for the economy, although the State has paid attention. As early as 2016, the Government established the Department of Environment and Technology Development (Ministry of Science and Technology) and there were Steering Committees for all ministries and branches to digitize their activities. Since the beginning of 2017, the State Bank has established a Fintech Steering Committee to link banking activities with high technology in the digital economy. But overall, the technology and the foundation of digital payment is still difficult.
The impact on the operation of the economy
The shift to e-payment contributed to the activities associated with the digital economy and the Fourth Industrial Revolution. Public services have recently switched to e-payment, businesses have also transformed strongly from using paper invoices to e-invoices, and ministries and industries have also moved their operations to websites and social networks. … ensuring more openness, transparency, and integration, meeting the requirements of international organizations.
These things help businesses to be gradually digitized, improve corporate governance efficiency, save costs, time …, meet the large production requirements in the context of our integration. sweeping with the global economy.
What are the roles of banks in promoting electronic payments?
To promote e-payment towards a cashless society, we first need to build an electronic payment ecological environment in the national economy. Participating in it are many subjects; in which the bank is only a part of this payment activity. We need to mention Fintech companies with high technology in software, hardware for payment operations.
To meet the payment process, not only banks but also investment funds, financial companies … Therefore, the combination of high technology with the policies, measures, and regulations of the agency. Financial management is one of the important requirements for us to ensure the requirement of raising the position of non-cash payment in the national economy.
In terms of technology, this is a relatively new field, high-tech companies that make payments in Vietnam are newly established (only takes about 5 years at the latest) so experience to develop technology activities and Limited financial capacity. The preparation of hardware and software for application and smooth use in the economy still faces difficulties. Therefore, Vietnamese small Fintech companies are small, fragmented and lack long-term development planning, which is heavily dependent on the software of foreign-invested enterprises.
Regarding financial policies, we still have difficulties and embarrassments when adapting to the high-tech era, not yet converting all existing regulations into simple ones that can be applied, right in tech activities. In addition, there are still gaps in the ability of state management agencies to check with the payment in the economy, so some forms of high technology exploitation can be used to operate black credit or some other activities. Payment activities need to be researched and managed. Therefore, financial policies need to be further studied to suit the digital economy.
How to facilitate speeding up digital payments?
First of all, we need to complete the regulations on e-commerce, digital signatures, … so that it can promote smooth payment operations. Next, the managing ministries and branches need to integrate technology so that there is a connection between the managing agencies in order to make the payment activities and regulations related to each other, suitable and not buckled. In addition, the regulations on payment subjects must be dedicated to supporting the handling of issues related to digital payments as quickly as possible, ensuring smooth payment.
Along with considering supporting infrastructure investment, especially in rural, mountainous and remote areas, to ensure the spread of non-cash payment system, there should be a policy promoting e-commerce activities by reducing taxes for Fintech companies, companies that have activities for non-cash payment, promoting Vietnamese net payment for Vietnamese Fintech companies to form parts soft, secure, secure payment, and in line with world standards.
In addition to the utilities that non-cash payment brings, the issue of information security, transaction security is also being paid attention by users. Therefore, service providers, as well as users themselves, need to do to ensure safe transactions.
Service providers need to improve safety, modernize technology and equipment; Banks and credit institutions need to improve the security quality at the highest level. Fighting high-tech crime is relatively difficult, but we must ensure almost absolute safety in non-cash payment activities, thereby increasing the trust of people, promoting people to use non-cash payment methods. In particular, the banking industry needs to improve the qualifications of bank staff, technical staff, and managers in both professional and ethical practice.
For consumers who must be on high alert, not providing confidential information to anyone, including relatives, should use a 2-layer authentication method to ensure the highest hacking prevention. Through a number of the recent loss of money in the account, most of the causes are due to the lack of vigilance of users, revealing personal information, account information as well as security codes. Therefore, the user’s alertness should be especially enhanced.
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