Cashless payment strongly encouraged during Tet

Commercial banks are running various incentive schemes for cashless payment for both businesses and consumers conducting transactions as Tet is approaching.

E-payment has become more common nationwide (Photo: SGGP)

To promote cashless payment, VPBank is launching the promotional campaign ‘Journey to Enjoy Tet’ worth a total value of VND20 billion (US$820,500) when its clients use its app VPBank NEO to transfer money, pay utilities bills, open a savings account, and spend money via credit cards. Similarly, Sacombank offers the program ‘Proceeding Transaction – Enjoying Attractive Gifts’ also to foster cashless payment via its app Sacompay, with up to 352 mace of gold in total.

Other commercial banks also deliver lucky gifts worth up to millions of VND to encourage their users to give cashless lucky money via their apps. Many people, therefore, do not need to exchange new cash note for this, while the method is considered safer.

Deputy Director Nguyen Duc Lenh of the State Bank of Vietnam – HCMC Branch stressed that cashless money is more convenient and time-effective, especially during the shopping peaks. That is why commercial banks are encouraging sellers in traditional markets to join this system.

For instance, until the end of March 2024, MSB offers a promotional scheme of up to VND900,000 (US$37) and money for each QR transaction valued VMD50,000 ($2) and above for shop owners and small businesspeople registering for a QR code for cashless payment. MSB also implements the M-Pro solution for a cashback of VND3.6 million ($148) per year for cashless payment. Its app MSB mBank possesses a feature of distance revenue monitoring for shop owners.

Similarly, Nam A Bank is implementing the model of Market 4.0 on its app Open Banking for sellers in traditional markets, night markets, tourism markets, flower markets, and food markets in HCMC to ensure safe and convenient cashless transactions. After registering as a seller applying this model, users receive a QR code to display in their shop, creating convenience for their customers to scan and finish paying their bill. This is supposed to help sellers quickly increase their transaction number, and thus their competitiveness, in a modern manner.

Obviously, when banks run modern payment methods, the pressure to withdraw money at ATMs also decreases a great deal, especially during Tet. The use of cashless payment methods like QR code scanning is becoming a good habits of people in urban areas.

Statistics from Vietnam National Payment JSC. (NAPAS) reveal that the percentage of money withdrawn from ATMs on this system continuously decreases year after year. In 2023, the figure was only 3.6 percent of the total transactions of this system. Meanwhile, NAPAS processed 20 million of transactions per day on average, a rise of 52 percent in quantity and 12 percent in transaction value compared to 2022

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