Cashless payment is anticipted to develop rapidly in Vietnam. (Photo: vtv.vn) Hanoi (VNS/VNA) - Transaction limits for e-wallets should be set atappropriate levels to encourage cashless payment amidst an anticipated boom ofe-commerce in Vietnam, experts have said.
Under a draft circular about intermediary payment services the State Bank of Vietnamrecently made public, e-wallet daily transaction limits were set at 20 million VND(850 USD) for individuals and 100 million VND for organisations. The monthlytransaction limits were set at 100 million VND and 500 million VND,respectively.
Pham Tien Dung, director of the State Bank of Vietnam’s Payment Department,said at a conference late last week that setting daily and monthly transactionlimits for e-wallets aimed to prevent them being used for illegal purposes liketax evasion or money laundering.
Dung pointed out that transaction value via e-wallets in Vietnam is currentlymodest, averaging about 200,000 VND per transaction.
Can Van Luc, a senior economist of the Bank for Investment and Development of Vietnam,said setting inappropriate monthly transaction limits would hinder thedevelopment of e-payment, adding that the limit for individuals should beincreased to 150 million-200 million VND.
“More consideration should be given on the transaction limits for e-wallets,” Lucsaid.
He said limits should be set based on income per capita and consumption demand.
E-payment has significant potential in Vietnam, given the country’s youngpopulation, high rate of smartphone users (55 percent) and rapidly growinge-commerce segment, Luc said.
Nguyen Ba Diep, CEO of e-wallet company Momo, said transaction limits should beset at higher levels to prepare for the anticipated rapid development ofe-payment.
Diep said monthly limits for individuals should be increased to 200 million VNDwhile no limits should be set for organisations.
According to Nguyen Thanh Hung, chairman of Vietnam e-Commerce Association, Vietnam’se-commerce industry has been predicted to develop rapidly, reaching a value of 33billion USD by 2025 from 8 billion USD today, but this would depend on thedevelopment of online payments.
Hung said it was necessary to create favourable conditions for the developmentof e-payment to drive a boom in e-commerce.
Hung said transaction limits should be flexible, adding that those with demandfor higher limits should be allowed to have them.
Tran Quang Huy, head of Fintech Club under the Vietnam Banks Association,proposed e-wallet transaction limits should be removed.
E-wallets were not meant for only small transactions, experts said.
Experts also said careful consideration should be given to regulations on theprocedures to open e-wallets and the number of e-wallets one could own.
According to Dung, it was important to create a favourable environment fore-payment but risks must be kept under control.
Vietnam is seeing rapid development of fintech companies and system securityand safety is the first priority, Dung said.
Dung stressed that the State Bank of Vietnam wants to develop policies andregulations which would promote cashless payment and keep risks under control.
The central bank's statistics showed that as of February, 2019, Vietnam had 29non-bank companies with licenses to provide intermediary payment services. -VNS/VNA
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