Easy cross-border payments via QR code.

During the official visit of Chinese Premier Li Qiang to Vietnam from October 12 to 14, 10 cooperation documents were exchanged between the two countries, including a Memorandum of Understanding between the Vietnam National Payment Corporation (NAPAS) and UnionPay International on the implementation of cross-border payment services via QR code between Vietnam and China.

Shopping and traveling are easier.

This information immediately attracted the attention of businesses and the public, in the context of strong growth in trade, import-export, and tourism between Vietnam and China.

Cross-border QR payments are becoming a convenient solution for businesses and consumers to conduct international payment transactions. With QR technology, users can easily scan codes to make payments without using cash or credit cards. This product enhances convenience, security, and speed for various transactions in international trade, travel, and services.

According to banks, China has a large potential customer base, so implementing bilateral payments via QR code with this market of over 1.4 billion people will create opportunities for businesses to expand their market and attract international customers through the acceptance of QR payments.

According to the State Bank of Vietnam, Vietnam has completed the connection of its cross-border payment system via QR code with Thailand and Cambodia (and is continuing with Laos), allowing citizens of each country to scan QR codes to pay for goods and services safely and conveniently in these countries directly through Vietnamese bank mobile applications and vice versa. Currently, many banks such as Sacombank and Nam A Bank have implemented cross-border payment services using QR codes for individual customers in countries like Thailand and Cambodia.

Most recently, Shinhan Bank Vietnam has also launched cross-border payment services using QR codes in these two markets. With this QR code payment service, customers traveling or on business can scan QR codes from the Shinhan SOL Vietnam digital banking app to make payment transactions at millions of points of sale in Thailand and Cambodia.

Mr. Do Quang Huy, Director of Ecotop JSC - a company specializing in providing e-commerce solutions, said that the implementation of cross-border payment services via QR code between Vietnam and China will greatly boost trade between the two sides.

"As far as I know, the payment process between the two parties currently often goes through a third party, leading to risks such as exchange rate differences and extended processing times. For example, I need to buy some software from China but encounter inconveniences with payment methods, such as fees charged when paying via Visa. If there were a dedicated payment gateway, consumers would have easier access to Chinese goods at lower prices," Mr. Huy commented.

The implementation of cross-border payment services via QR codes between Vietnam and China will certainly help further develop trade and commerce between the two sides. (In the photo: Goods exported to China by road. Photo: THUY LINH)

A significant challenge.

Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), said that Vietnam and China have strong trade activities, but the payment process is not yet convenient. He cited the case of Vinafruit, which recently participated in the first Vietnam Fruit Festival held in Beijing (China) and had to hire a local contractor to construct its booth.

When it came time for payment, Vinafruit had to go to the bank and present a lot of documents proving the purpose of purchasing foreign currency, but the bank didn't have yuan, so they had to convert it to USD. "We transferred USD to our partners, but they couldn't withdraw USD either and had to spend a lot of time providing many documents to withdraw yuan," Mr. Nguyen explained.

Therefore, the implementation of cross-border payment services via QR codes between Vietnam and China will certainly make payments between the two sides faster and safer. In addition, it will allow for better government control over the flow of money, compared to the diverse payment methods currently in use.

"Previously, payment methods were quite flexible, involving bartering or advance payments through intermediaries in Vietnam, while formal bank payments were mainly used for exports via sea freight," Mr. Nguyen shared.

According to Mr. Nguyen Lam Vien, Chairman of the Board of Directors of Vinamit Joint Stock Company, the major obstacle in transactions between Chinese and Vietnamese e-commerce platforms, as well as between Vietnamese and Chinese citizens, has long been that most transactions are not recognized.

Therefore, signing a cooperation agreement to deploy cross-border payment services via QR code will further promote trade and business between the people and businesses of the two countries. "Solving the payment issue will open up the flow of goods between Vietnam and China to an even higher level. The economic landscape will become more vibrant," Mr. Vien commented.

However, according to this businessman, in addition to the memorandum of understanding on the implementation of cross-border payment services via QR code, the Vietnamese and Chinese governments have signed many other memoranda of understanding on bilateral cooperation, notably documents on railway connectivity, research on models for building cross-border economic cooperation zones, and action plans between Vietnamese and Chinese customs... These agreements will certainly create many significant and positive changes, but also bring many unpredictable risks.

"Specifically, the advantage is that Vietnamese agricultural products will be sold to China through more diverse channels with the support of transportation, logistics, and payment services... From Vietnamese farms, they can be sold directly to China or on Chinese e-commerce platforms if the customs procedures on both sides are followed correctly."

"As for consumer goods, even temperate agricultural products from China to Vietnam will be faster and easier. Then, Chinese consumer goods will have a larger presence in the Vietnamese market, directly impacting domestic production and business sectors," Mr. Vien analyzed.

QR code payments are becoming increasingly popular.

According to new statistics from the State Bank of Vietnam, in the first six months of 2024, transactions via QR code increased by 104.23% in volume and 99.57% in value compared to the same period last year. Simultaneously, the electronic payment market in Southeast Asia is experiencing strong growth with an increasing rate of mobile payment usage. Therefore, cross-border QR code payment services are predicted to become increasingly popular and a common payment solution in the near future.

Source: https://nld.com.vn/de-dang-thanh-toan-xuyen-bien-gioi-qua-qr-196241015204429145.htm