HÀ NỘI — The Government has recently decided to extend the pilot period of using telecommunications accounts to pay for small-value goods and services in the country, called Mobile-Money service, until the end of this year.

According to newly-issued Resolution No 87/NQ-CP, enterprises, which were approved by the State Bank of Việt Nam (SBV) to provide Mobile-Money service according to a pilot programme under Decision No 316/QĐ-TTg dated March 9, 2021, may continue the service provision until December 31, 2025.

The Government has directed that the SBV continue to preside over and coordinate with the Ministry of Science and Technology, the Ministry of Public Security, the Ministry of Justice and relevant agencies to develop and propose a draft decree regulating Mobile-Money services in accordance with the laws.

Previously, the SBV proposed the Government to develop a decree regulating Mobile-Money service in Việt Nam, in order to promote non-cash payment in the country, especially in isolated areas. According to the SBV, currently, Mobile-Money service is being implemented in a pilot programme. Therefore, it is necessary to develop the decree to create an official legal corridor for service providers.

The SBV believes the development of Mobile-Money service will contribute to promoting non-cash payments, reducing social costs, bringing convenience to users and increasing access to and use of financial services, especially in rural, mountainous, remote, border and island areas of Việt Nam. This is because the service allows customers to use their telecommunications accounts to perform various transactions such as payment for small-value goods and services, money transfer and direct deposit and withdrawal at stores and transaction points of telecom network operators nationwide without requiring a bank account.

After nearly three years of the pilot Mobile-Money services programme, according to Decision No 316/QĐ-TTg, enterprises have made efforts to develop services and achieved positive results.

By the end of 2024, the total number of customers registering and using Mobile-Money services was more than 9.6 million, of which 6.9 million were in rural and remote areas, accounting for 72 per cent.

More than 11,800 locations provided Mobile-Money accounts for customers and 275,960 business units accepted payment for essential services such as electricity, water, education, telecommunications and public administration.

The number of deposit, withdrawal, money transfer and payment transactions via Mobile-Money was over 148 million with a total value of nearly VNĐ5.4 trillion.

However, even with the pilot implementation extension, Mobile-Money service providers must find a new direction, as their business are under pressure from the rapid development of digital banks and e-wallets.

Consulting Director of FPT Group’s FPT digital division, Đoàn Hữu Hậu, said maybe a strategic change such as cooperation with banks and e-wallets can be a temporary solution for Mobile-Money service providers.

Mobile-Money service providers could also expand to international markets in developing countries where technology infrastructure is low and financial services are underdeveloped, such as the case of M-Pesa in Kenya, Hậu suggested. — VNS