HN to get potential benefits from going cashless

Tuesday, Nov 21, 2017 12:36

The capital could earn an extra US$600 million per year if the majority of transactions are electronic, replacing cash. — Photo

The capital could earn an extra US$600 million per year if the majority of transactions are electronic, replacing cash.

These were the results of an independent study conducted by Roubini ThoughtLab, commissioned by Visa, to examine the economic impact of increasing the use of digital payments in major cities around the world.

According to the study, Ha Noi, one of the subjects of the study, will have particularly strong potential gains from going cashless.

The city’s GDP is also predicted to grow by 36.4 basis points, while employment could jump an extra 3.5 per cent.

The study estimates that the increasing application of electronic payments, such as cards and mobile payments, could bring a net benefit of up to $470 billion per year across the 100 studied cities, equivalent to three per cent of the average GDP for these cities.

“Cashless Cities: Realising the Benefits of Digital Payments” is a unique study aimed at quantifying the potential net benefits experienced by cities that move to an “achievable level of ceaselessness.” It is defined as the entire population of a city using digital payments equal to the top 10 per cent of users in that city at the time.

The study does not aim to eliminate cash. It seeks to quantify the potential benefits and costs thank to significantly increasing use of digital payments. Accordingly, by reducing depending on cash, the study estimates the immediate and long-term benefits for three main groups -- consumers, businesses and governments.

“This study demonstrates the substantial upside for consumers, businesses and governments, as cities move toward greater adoption of digital payments,” Ellen Richey, Visa’s vice chairman and chief risk officer, said.

“Societies that substitute digital payments for cash see benefits from greater economic growth, less crime, more jobs, higher wages and increased worker productivity.”

“While Viet Nam is still a heavily cash-oriented society, we’re seeing very positive moves across the board from consumers, merchants and the government, with attitudes towards electronic payments now better than ever before,” Sean Preston, Visa country manager for Viet Nam, Cambodia and Laos, said.

“Visa fully supports the State Bank of Viet Nam’s roadmap for non-cash payments by 2020 and is committed to driving the adoption of electronic payments and expanding acceptance to ensure that the transition to a cashless economy is both efficient and smooth," he added. — VNS

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