In Vietnam, where the technology platform is not high. From observation in Agribank and other banks, I realize that some types that can be applied:
1.4.1. Customers have to appear to bank sites
Cheque: a printed form, used instead of money, to make payments from your bank account: In Vietnam, we often use this kind to withdraw money from the bank for our cash payment purpose.
Authorized payment (payment order): for individuals and enterprises: this is the paper with infomation of payer, receiver, amount of money, authorised signature and stamp of payers that order the bank to pay to the account of receivers with the information provided.
Letter of credit: oversea payments or to other countries for goods and services.
1.4.2. Customers do not need to appear in bank sites
- Mobile banking and internet banking: we load an app on mobile and make payments and provide identification notice to make sure that you are the owner of that bank account.
- Master, visa and JCB card: are the products of banks which suppy the limitation of amound of money for you to make transations when buying goods and servies.
- QR code payment: is a contactless payment method where a payment is performed by scanning a QR code via the mobile app. This is an alternative for doing electronic fund transfer by using a payment terminal. This avoids a lot of traditional infrastructure serving for electronic payments such as payment cards, networks, terminal and merchant accounts.
To use a QR code payment the consumers scans the QR code displayed by the merchant with their phones to pay for their goods. They enter the amount they have to pay and finally submit. This is a more secure card-not-present method than others.
ATM card: is often used to withdraw money from ATM for individual payment purposes.
E- Wallets: Grap Pay, Payyoo, Shopee… customer payment through the connection of Visa, Master Card and the Wallets.
Internet Banking: using computer and internet with online accounts.
Because using new technology to bank requires the innovation from the top and the whole system, I choose the scope of my thesis as the system of Agribank.
Technology Platform, Inteligent Mobile device with wifi and 3G, users can make payments by themselves, is the way of my thesis..
In this thesis, I concentrate on E-mobile banking, QR Pay and Credit Card in Agribank
1.5. Cashless payment from the view of Vietnam Government:
Our Government is also having great concern on Cashless payment and The Prime Minister of the Government issued Decision No. 2545 / QD-TTg, dated 30/12/2016, ―approval for the Scheme for Development of Cashless Payment in Vietnam for the period of 2016-2020‖.
The content of this decision has the following notes:
1.5.1. Overall objectives
a/ To make a marked progress in non-cash payment in the national economy, thereby, changing the habit of using payment instruments in society, reducing cash payment-related social costs and the ratios of cash in circulation to the gross domestic product (GDP) and of cash to total payment instruments;
b/ To ensure security, safety and operational effectiveness of payment and settlement systems, and cashless services and payment instruments; to create effective mechanisms to protect users of cashless payment services;
c/ To promote the use of e-payment and reduce the use of cash in payment transactions between individuals, enterprises and governmental agencies;
d/ To improve the effectiveness of the management and supervision by state management agencies, and make payment activities in the economy and
personal incomes transparent, thus contributing to the prevention and combat of corruption, negative practices and economic crimes.
1.5.2. Specific targets
a/ By the end of 2020, the ratio of cash to total payment instruments will be below 10%;
b/ To strongly develop card payment using card readers at points of sale (POS); to gradually increase the number and value of card payment transactions using card readers. By 2020, the whole market will have over 300,000 card readers installed at POS to process around 200 million transactions per year;
c/ To promote e-payment in e-commerce, strive to achieve the targets set out in the master plan on development of e-commerce during 2016-20 (100% of modern supermarkets, shopping malls and distribution centers will have card readers which enable consumers to make non-cash payments when purchasing goods; 70% of electricity, water, telecommunications and communications service providers will accept non-cash payment of charges;
50% of individuals and households in major cities will use non-cash payment instruments in their shopping and consuming activities);
d/ To concentrate efforts on developing a number of new and modern payment instruments and forms in rural, remote and deep-lying areas, thus contributing to promoting financial inclusion; to drastically increase the number of people having access to payment services, and increase the percentage of people aged 15 years or older having bank accounts to at least 70% by the end of 2020.
1.5.3. Solutions:
a. Improving the legal framework, mechanisms and policies
b. Upgrading and expanding the interbank e-payment systems to meet the needs of the economy and the process of international economic integration
c. Building and developing retail payment systems and services
d. Promoting e-payments in the governmental sectors and public administrative services
e. Renovating the securities clearing and finalization system
f. Innovating the payment and finalization systems on the interbank monetary and foreign-currency market
h. Enhancing management and supervision of international payments and money transfers
g. Supervising and applying standards to payment systems according to international criteria and standards
k. Stepping up information, communication, training, guidance and customer protection in non-cash payment
l. Enhancing coordination to promote non-cash payment
So improving cashless payment is the way and direction that our Government wants to achieve and supports in overall. The launching of Decision 2545 is the framework for Agribank and other commercial banks to develop the cashless payment system, not only for the profit and efficiency purposes, but also for the development of our society.