Cash payments targeted at below 10% in 2020

Created 26 December 2017
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HCMC – The proportion of cash payments in all transactions is to be brought down to below 10% as per the non-cash payment scheme towards 2020 announced by the Government, Thanh Nien newspaper reports.

Kết quả hình ảnh cho Thanh toán bằng tiền mặt dưới 10% vào năm 2020

The entire market will have at least 300,000 POS terminals with the number of transactions to reach 200 million a year. All supermarkets, shopping malls, modern distribution facilities and State Treasury offices will be equipped with POS terminals.

As shown in a report of the central bank, the ratio of cash to total means of payment dropped from 19.02% in 2005 to 14.02% in 2010 and 11.45% last August. Thus, the target to reduce it to less than 10% looks achievable.

In addition, the use of bank cards is on the rise, with stable growth in card issues, volumes and transaction values. As of last September, the accumulated number of cards exceeded 127 million (up 5.5 million cards against last June), while there were 17,396 automated teller machines (ATM) and 260,187 POS terminals nationwide. The market has 76 suppliers of payment service via the Internet and 39 suppliers of mobile payment.

Some regulations to become effective in the coming time require payments via bank accounts such as the central bank’s draft document concerning capital disbursement at credit institutions.

But in reality, some enterprises still shy themselves away from bank transfer due to transfer costs. As for restaurants and shops, they are not yet interested in having POS terminals due to the fact that they have to pay a fee of 1.5-2.5%.

According to financial experts, there should be policies encouraging non-cash payments, especially low card and POS fees for both users and those accepting cards.

Bui Quang Tin, a financial expert, was cited by Thanh Nien newspaper as saying that the target of having cash payment below 10% of total payments in 2020 is attainable thanks to increasing numbers of POS terminals and ATMs. However, certain individuals and enterprises do not want to make payments via banks for fear of having their information known to management units.

The use of cash out of total payments in Southeast Asian countries ranges between 11% and 17%. Meanwhile, a much lower proportion is recorded in European countries, such as below 1% in Sweden and Norway.

 

Source: Thesaigon Times

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