HANOI: An official legal framework for Mobile Money is expected to be issued early to promote cashless payment in rural and remote areas, following the pilot officially coming to an end on Tuesday (Dec 31).
The State Bank of Vietnam has proposed that the Government issue a decree on Mobile Money services in the fourth quarter of 2025, with the pilot programme extended until the decree comes into effect.
According to the Ministry of Public Security, the issuance of the decree on Mobile Money services is necessary to promote cashless payments in rural and remote areas where normal banking services are limited.
The ministry added that there have been no issues related to the use of Mobile Money services for illegal purposes revealed during the pilot.
Removing difficulties for telecommunications service providers in implementing Mobile Money is critical to promote its development and enhance its efficiency, the ministry said.
A State Bank of Vietnam's report showed that after three years of being tested, more than 9.87 million customers registered for Mobile Money services, more than 71.7 per cent of which live in hard to reach areas. However, only 66.46 per cent of the total Mobile Money accounts are actively used.
Three telecommunications service providers participated in the pilot: Viettel, VNPT – Media and MobiFone, which accounted for 73 per cent, 21 per cent and 6 per cent of the total number of registered Mobile Money accounts, respectively.
There were more than 159 transactions via Mobile Money accounts as of the end of September, with a total value of VNĐ5.685 trillion (US$223.3 million).
However according to VNPT – Media, the transaction limit of VNĐ10 million per month is no longer appropriate. This low limit is hindering the expansion of Mobile Money services, the company said, proposing that it should be increased to VNĐ100 million per month, per account.
There is also a regulation that subscribers must be active for at least three months to be eligible for Mobile Money services. Again, operators argue that this is not appropriate because the information of mobile subscribers is verified and connected with the national population database.
Service providers also proposed a mechanism to develop a payment network through the cooperation with banks and intermediary institutions.
Mobile Money accounts of different service providers should also be connected to make the service more convenient for users. — Vietnam News/ANN
