Recently, the Da Nang government and credit organisations citywide have been actively involved in boosting cashless payments, with a focus on mobile payment methods although there have been few banks operating in rural areas.

A cashless transaction

The city’s branch of the Viet Nam Bank for Agriculture and Rural Development (Agribank) has been paying special attention to promoting the development of cashless payment services in rural areas.

Currently, the bank is providing its customers with about 50 services on cards, mobile phones, and Internet.

In an effort to boost cashless transactions in rural areas, the city's branch of the State Bank of Viet Nam (SBV) has been building a legal framework and creating favourable policy mechanisms in order to facilitate the non-banking sector to provide its services in rural areas.

Heed has been paid to promoting the application of technological achievements, as well as perfecting banking transaction processes in a digital, automated, safe and convenient manner.

However, while local consumers, especially those in rural areas, have been encouraged to use cashless payments, the system’s infrastructure has remained weak.

According to the latest statistics, Agribank has only one branch in Hoa Vang District’s Hoa Phong Commune, two transaction offices in the district’s Hoa Son and Hoa Phuoc communes, and one ATM at the Sun World Ba Na Hill Resort. In addition, there are only 3 Point of Sale (POS) systems in Hoa Vang District. As a result, consumers in remote or rural areas lack access to traditional banking services.

Mr Vo Minh, Director of the city's branch of SBV, emphasised it takes people in rural areas a long time to change their consumption habits in implementing cashless payment transactions instead of cash.

Chairman of the Hoa Vang District Farmers' Association Nguyen Van Van stressed the need for relevant agencies to promote the publicity of the benefits of conducting financial transactions with mobile devices amongst local residents in order to help them change their payment habit.

Many financial and banking experts underscored the necessity for promoting the application of advanced technologies in conducting financial services through Fintech startups.

Mr Nguyen Tuan Phuong, Director of the FPT Software Da Nang, highlighted the significance of such financial service providers as commercial banks, non-financial credit institutions and Fintech startups in developing financial services in a comprehensive manner.

Mr Nguyen Tuan Phuong, Director of the FPT Software Da Nang, highlighted the significance of such financial service providers as commercial banks, non-financial credit institutions and Fintech startups in developing financial services in a comprehensive manner.