ATMs are facing the risk of becoming unpopular.

According to Mr. Nguyen Quoc Hung, Secretary General of the Vietnam Banking Association, before 2016, a daily transaction volume of around 500,000 to 1,000,000 transactions was a dream for credit institutions. Today, the average daily transaction volume reaches 8 million transactions, with cash transactions totaling approximately 900,000 billion VND (equivalent to 40 billion USD). With such a large volume of daily payments, digital transformation is extremely important and practical.

As of June 2023, the average transaction volume for bank transfers increased by 52.35% compared to 2022. Payments made through POS terminals, QR codes, the internet, and mobile banking increased in both value and volume.

Meanwhile, ATM cash withdrawals decreased by approximately 6.3%. This demonstrates that digital transformation can help reduce the use of cash and promote faster and more convenient payment methods.

Cashless payments are booming. (Photo: Tuan Nguyen).

In addition, approximately 40 banks have opened payment accounts for customers, totaling around 11 million accounts, through the eKYC method. Around 20 banks have opened card payment accounts for customers via eKYC, totaling 10.8 million. This is one of the positive results in the field of card payments.

Winnie Wong, Country Director of Mastercard in Vietnam, Cambodia, and Laos, stated that at least 95% of banks in Vietnam are actively pursuing digital transformation. A 2022 Mastercard study found that 94% of Vietnamese consumers used at least one digital payment method in the past year. In contrast, this figure was only 88% in the Asia Pacific region and even in more developed countries.

According to Mr. Pham Anh Tuan, Director of the Payment Department, from customers being able to open accounts online to making purchases, people have become almost proficient in basic transactions such as money transfers and payments, all of which are conducted through online platforms.

The bank has also partnered with Fintech companies to open e-wallets so that people can pay online for basic services such as electricity, water, rent, and phone bills.

With the introduction of card applications (Mastercard, Visa), banks have increased the use of card payments, significantly reducing the rate of cash usage.

On August 8th, Apple Pay officially launched in Vietnam, and Android has completed card integration on mobile phones. Along with the integration of QR code applications on phones, people can now simply use their phones to pay for all transactions, big or small, quickly, easily, and conveniently.

"Fast speed, no need to manage cash. Clearly, digital transformation applications have truly entered the lives of people, from small retailers to large businesses," said Mr. Pham Anh Tuan.

Ngoc Tuan

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