New banking of modern era: Mobile money

Lately, Minister of Information and Communications Nguyen Manh Hung said after the Prime Minister has given the green light to mobile money implementation, the Ministry has worked with the State Bank of Vietnam and telecommunication companies on goal orientation for payment services.


New banking of modern era: Mobile money

Presently, the state bank of Vietnam advocated for the service implementation; however it said clearly that there should be transparent regulations about parties’ responsibilities to supervise easily.
According to the Minister, Mobile Money will bring more benefits for residents who has account in telecommunication companies for paying commodities even these with trivial value.
Later when the government documents the policy implementation, the state bank and the Ministry will assess company participants and allow them to pilot it.
Minister Hung said that telecommunication companies should prepare documents to apply for new service implementation. New service will push up non cash payment in Vietnam because at present, cash payment is still popular. Specifically, 90 percent of daily transactions are conducted in cash, while the rate goes up to 99 percent for transaction worth under VND100,000 (US$4.34),
Mobile money is a form of electronic money, which allows you to do financial transactions using your mobile phone. Mobile wallets provide a safe and secure place to save our funds as they are saved virtually.
Experts said that most Vietnamese people have mobile phones whereas just 40 percent of citizens in Vietnam have bank accounts. Accordingly, telecommunication companies easily and quickly implement e-wallet nationwide.
Subsequently, early implementation of e-payment can minimize the risk of foreign peers which will dominate the market.
So far, three giant telecommunication companies including Viettel, VNPT and MobiFone have officially documented to the government about Mobile Money.
Mobile money service will provide financial services for those who has not had bank account and island residents and those who have not had access to banking services.
In a working session with Deputy Prime Minister Vuong Dinh Hue lately, VNPT General Director Pham Duc Long once again repeated the proposal of mobile money expecting that the government will allow VNPT to launch the service as early as possible.
Director Long said that MobiMoney is the general trend in the world and VNPT has prepare infrastructure and budget for implementation of e-wallet. In the present context, Mobi Money is one of new pillars in the industry revolution 4.0. He said the company will show its pivotal role in the service implementation producing huge value for the country.
At a meeting held by the Ministry, Viettel Chairman Le Dang Dung also proposed the government to give the green light to the company’s e-wallet service implementation. He said present e-payment service providers can’t keep pace with increasing demand of big city dwellers but it is empty in countryside area.
To sum up, mobile money will create opportunities for the growth of modern payment services via smartphones satisfying customers’ high demand; especially it is suitable for residents in rural districts and distant regions who can’t access to traditional banking services.

By TRAN LUU – Translated by DANG MINH

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