Prime Minister Nguyen Xuan Phuc has approved a mobile money pilot project that will pave the way for payments of a limited value to be conducted using telecommunications accounts.
Mobile phone subscribers who wish to use the service must provide ID that matches their registered and verified telecommunications accounts, in line with Government regulations. The account must be used regularly at least three months prior to the registration date of the mobile money service.
The pilot will be rolled out nationwide, with priority being given to rural, remote, and mountainous and border regions, as well as islands.
It enables money transfers and payments for legal products and services in Vietnam only, using VND. Cross-border transactions are not permitted.
The pilot project will be carried out over two years from when the first business in the field receives permission to launch the service.
The credit limit will be no more than VND 10 million (USD 435) per month for all transactions on each account.
Approval of the project aims to bolster cashless payments via mobile devices as well as access to and use of financial services, particularly in rural and remote areas, to capitalize on the country’s telecommunications infrastructure and network.
Project outcomes will act as a foundation for the building of regulations stipulating the operation of mobile money services in the country.
Vietnam has around 129.5 million mobile subscriptions, around half of which use 3G and 4G, and 43.7 million, or 45 percent of the population, using smartphones.
The Government had targeted cutting the ratio of cash payments to less than 10 percent by the end of last year, from 11.33 percent in 2019.
Mobile money would significantly contribute to accelerating cashless payments around Vietnam, where cash in circulation still accounts for 20 percent of the country’s GDP.- (VNA/VLLF)