Prime Minister Nguyen Xuan Phuc has asked Viettel and VNPT to complete applications for submission to the State Bank of Viet Nam (SBV) to participate in e-payment mechanisms in Viet Nam.

Earlier, the Ministry of Information and Communications and the two biggest telecom providers in Viet Nam – Viettel and VNPT – proposed that the PM instruct the central bank to allow them to offer financial switching services and electronic clearing services.

The ministry said the advantage of the telecom firms when participating in electronic payment is that mobile networks can cover approximately 100 per cent of the population while banks only cover 30-40 per cent.

Telecom firms are also powerful in technology, infrastructure, and sales channels. The telecommunication accounts are also being used to pay for telecommunication services.

There is an expectation that e-banking can cover 100 per cent of the population, it said.

Pham Duc Long, VNPT’s general director, proposed that the Government should promulgate policies for telecom providers to join in e-payment services.

Long said non-cash payments have become popular around the world. However, e-payment services in Viet Nam have been implemented slowly as they require users to have bank accounts, making it difficult for everyone to access such services.

Meanwhile, telecom firms have a wide reach which means it is more convenient to use telecom accounts to pay for some services online.

Currently, only the National Payment Corporation of Viet Nam (NAPAS) has been granted a licence from the SBV to provide financial switching services and electronic clearing services in Viet Nam, acting as an intermediary connecting banks.

If Viettel and VNPT were granted a licence, NAPAS would have a big rival as the two telecom firms have nearly 100 million mobile subscribers in the country.

The PM also instructed SBV in co-operation with the Ministry of Information and Communications (MIC) to study MIC’s proposal for pilot implementation of using telecom accounts for payment of services of low value. — VNS