Cashless payment is anticipted to develop rapidly in Việt Nam.  Photo vtv.vn

HÀ NỘI – Transaction limits for e-wallets should be set at appropriate levels to encourage cashless payment amidst an anticipated boom of e-commerce in Việt Nam, experts have said.

Under a draft circular about intermediary payment services the State Bank of Việt Nam recently made public, e-wallet daily transaction limits were set at VNĐ20 million (US$850) for individuals and VNĐ100 million for organisations. The monthly transaction limits were set at VNĐ100 million and VNĐ500 million, respectively.

Phạm Tiến Dũng, director of the State Bank of Việt Nam’s Payment Department, said at a conference late last week that setting daily and monthly transaction limits for e-wallets aimed to prevent them being used for illegal purposes like tax evasion or money laundering.

Dũng pointed out that transaction value via e-wallets in Việt Nam is currently modest, averaging about VNĐ200,000 per transaction.

Cấn Văn Lực, a senior economist of the Bank for Investment and Development of Việt Nam, said setting inappropriate monthly transaction limits would hinder the development of e-payment, adding that the limit for individuals should be increased to VNĐ150 million-VNĐ200 million.

“More consideration should be given on the transaction limits for e-wallets,” Lực said.

He said limits should be set based on income per capita and consumption demand.

E-payment has significant potential in Việt Nam, given the country’s young population, high rate of smartphone users (55 per cent) and rapidly growing e-commerce segment, Lực said.

Nguyễn Bá Diệp, CEO of e-wallet company Momo, said transaction limits should be set at higher levels to prepare for the anticipated rapid development of e-payment.

Diệp said monthly limits for individuals should be increased to VNĐ200 million while no limits should be set for organisations.

According to Nguyễn Thanh Hưng, chairman of Việt Nam e-Commerce Association, Việt Nam’s e-commerce industry has been predicted to develop rapidly, reaching a value of $33 billion by 2025 from $8 billion today, but this would depend on the development of online payments.

Hưng said it was necessary to create favourable conditions for the development of e-payment to drive a boom in e-commerce.

Hưng said transaction limits should be flexible, adding that those with demand for higher limits should be allowed to have them.

Trần Quang Huy, head of Fintech Club under the Việt Nam 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 the procedures to open e-wallets and the number of e-wallets one could own.

According to Dũng, it was important to create a favourable environment for e-payment but risks must be kept under control.

Việt Nam is seeing rapid development of fintech companies and system security and safety is the first priority, Dũng said.

Dũng stressed that the State Bank of Việt Nam wants to develop policies and regulations which would promote cashless payment and keep risks under control.

The central bank's statistics showed that as of February, 2019, Việt Nam had 29 non-bank companies with licenses to provide intermediary payment services.  VNS