COVID-19: An opportunity for breakthrough non-cash payment services

According to the Vietnam National Payment Joint Stock Company (NAPAS), by 2020, the number of fast money transfers 24/7 surpassed the number of ATM withdrawals and accounted for nearly 66.6% of the total. the number of transactions processed by the NAPAS system. On November 13, Vietnam National Settlement Joint Stock Company (NAPAS) held the 6th Member Bank Conference. This is an annual event to appreciate the effective cooperation of successful banks. Members have accompanied NAPAS in the development of non-cash payments. The conference focused on contents including the evaluation of the results that banks and NAPAS work together in 2020, sharing plans and strategic projects to be implemented in 2021 with a vision to 2025. In the framework of the event, NAPAS also honored and announced the outstanding bank award, outstanding performance, with different criteria recognized through the NAPAS system in 2020. In 2020, the banking and financial market in general and the payment sector in particular will be subject to many challenges, greatly affected by the abnormal developments of natural disasters and COVID-19 pandemic. However, NAPAS recognizes this as an opportunity for non-cash payment services to develop. Besides continuous efforts to improve service quality; ensuring the national financial switching infrastructure is operated stably, safely and smoothly; expanding transaction channels in electronic payment, transferring electronic money, promoting non-cash payments; NAPAS and member banks focus on implementing key projects including: converting magnetic cards to domestic chip cards under the direction of the State Bank, putting into operation the clearing system for sale payment transactions. retail (ACH), connecting switching card transactions with international card organizations. In addition, NAPAS works closely with the media to implement programs that contribute to raising awareness of changing consumer behavior, thereby promoting non-cash payments such as: Smart money, Smart money, Day Cashless, Vietnam Card Day … In the difficult year of 2020, NAPAS continues to implement a series of free switching and clearing programs, including: free of charge for public services, reduction of fees for small value interbank money transfers from 2 million dong. or less, service fees are exempted for enterprises providing air and rail transport services. Through the times of exemption and reduction, the total amount of free discount through NAPAS is equivalent to nearly 800 billion VND. In 2020, NAPAS will continue to prioritize investment, upgrade information technology infrastructure, enhance security and security, continue to research and develop new products and services on the system platform. ACH, researches to build digital infrastructure, provides new payment solutions based on advanced technology to meet the needs of domestic and international switching, multi-channel (ATM, POS, over the Internet, mobile phones …), multi-services of all subjects, economic sectors thereby contributing to the development of non-cash payments in Vietnam Speaking at the event, Mr. Nguyen Quang Hung – Chairman of NAPAS Board of Directors – said: “Implementing the mission of connecting people, businesses and banks with innovative and reliable payment products. , easy to access, easy to use for everyday life, in 2020, banks together with NAPAS have achieved remarkable results in reducing the proportion of withdrawals, cash payment, specific services. 24/7 fast money transfer on internet banking and mobile banking applications of banks is a service that customers trust in money transfer and payment transactions with an average growth rate of more than 3 times from 2018 to year. 2020 ”. For example, if in 2015, the NAPAS system mainly processed ATM switching transactions (accounting for 89.7%), while the proportion of instant money transfers 24/7 accounted for only 1.1% of the total. transaction volume. By 2020, the NAPAS system has recorded the number of fast money transfers 24/7 surpassing the number of ATM withdrawal transactions and accounts for nearly 66.6% of the total number of transactions while the ATM switching transactions. only 26.6%. The total value of ATM switching transactions (cash withdrawal) accounts for 84.4% of the total value of transactions made via NAPAS system in 2015. However, this number has dropped sharply and only accounts for 5.4% 2020. Meanwhile, the proportion of the value of 24/7 fast money transfer transactions via NAPAS system has increased 11 times, from 6.3% in 2015 to 93.5% in 2020.