Vietnam banks required to issue chip cards from March 2021

Dec 21st at 08:09
21-12-2020 08:09:27+07:00

Vietnam banks required to issue chip cards from March 2021

As of the end of the third quarter, Vietnam has around 93.78 million bank cards in circulation, in which the majority are magnetic cards.

Banks in Vietnam are required to issue chip cards instead of the current magnetic ones from March 31, 2021.

Magnetic cards would no longer be used from March 31, 2021.

The move was stipulated in a recent revised circular issued by the State Bank of Vietnam (SBV), the country’s central bank, aiming to ensure greater payment security and promoting non-cash payment methods.

In previous piece of legislation, banks were asked to replace all current bank cards with chip cards by December 31, 2021, which means the deadline for banks to issue new chip cards have now been cut short.

According to the SBV, the decision is necessary to put banks under pressure of moving forward with new changes, while urging lenders to allocate required personnel and funds to ensure the changing process goes smoothly without any inconvenience for customers.

“The newly-issued circular will help prevent banks from issuing magnetic cards and alters the government’s plan for using chip cards from 2021,” stated the SBV.

The SBV also extended the deadline for ATM and point-of-sales (POS) in Vietnam to accept chip cards in payment, which is in line with the current digitalization processes at banks.

As of the end of the third quarter, Vietnam has around 93.78 million bank cards in circulation, in which the majority are magnetic cards.

According to GlobalData’s 2019 Banking and Payments Survey, cash is still the most preferred payment mode for e-commerce purchases in Vietnam, accounting for 35.6% in 2019.

Alternative payment solutions are gradually gaining ground and accounting for a 15.5% share. MoMo is the most preferred payment solution in Vietnam, followed by PayPal.

A plan on non-cash payment in Vietnam in the 2016-20 period approved by Prime Minister  Nguyen Xuan Phuc visioned that by the end of 2020, the ratio of cash transactions will be reduced from 90% in 2016 to below 10%.

Hanoi Times





RELATED STOCK CODE (2)

NEWS SAME CATEGORY

Tax and fiscal support in response to coronavirus crisis

The Ministry of Finance is planning to further support the business community, including the extension of the validity period for existing support programs already...

PM Phuc dismisses US claim Vietnam manipulates currency for trade advantage

Vietnam's monetary policies are meant to ensure economic stability and not create trade advantages for it, Prime Minister Nguyen Xuan Phuc has said.

Vietnam has no intention to manipulate currency

A devaluation of the Vietnamese dong will disrupt and cause severe consequences to the local economy, said an expert.

VBSP: Poverty reduction by brain and by heart

Providing policy credit as an important channel for poverty reduction, Vietnam Bank for Social Policies has been awarded the Labour Hero in renovation title.

Vietnam rejects ‘currency manipulator’ label

Vietnam has rejected the U.S.’s currency manipulator label, reiterating that its monetary policies do not target unfair trade advantages.

VN's currency policy aims at stabilising inflation and macroeconomy, not manipulation for unfair advantage

Viet Nam's exchange rate control, as part of its general currency policy, aims at keeping inflation in check and stabilising the macroeconomy. The country does not...

Banks to lead market growth in 2021: experts

The banking sector is still worth an investment in 2021 on expectations the Vietnamese economy and business community will recover as the pandemic is under control...

Lender MSB expects to earn hundreds of millions from insurance deal

Vietnam Maritime Commercial Joint Stock Bank is set to sign an exclusive bancassurance deal with a leading but unidentified insurer worth hundreds of millions of...

Fitch rates Standard Chartered Bank Vietnam “BB” with stable outlook

Standard Chartered Bank Vietnam has announced that it has obtained a first-time rating from Fitch at BB and BBB- for its long-term issuer default foreign currency...

Credit growth limits extended

The State Bank of Viet Nam (SBV) has extended the credit growth limits for the second time this year to some commercial banks, of which the highest level is up to...

Bank stocks

Insurance stocks


MOST READ


Back To Top