With the country’s three automated teller machine operators, Smartlink, VNBC, and Banknetvn, linking up, banks expect use of non-cash payments to increase strongly as consumers capitalize on the increased convenience.

Nguyen Van Dung, deputy director of the Ho Chi Minh City branch of the State Bank of Vietnam, said banks have the infrastructure to connect their points of sale (POS) and only the fees need to be worked out.

Early reports show payments done using cards rose nearly five times between 2005 and 2009, he added.

Ly Thi Ngoc, director of DongA Commercial Bank’s card center, said following the link-up it is certain money will be transferred by customers between networks in future.

Following the government’s instructions, banks have also developed other services like mobile banking and Internet bankingto encourage customers to reduce use of cash.

Le Huynh Ha, head of ATM services at Vietcombank in HCMC, said the amount of money paid using cards at his bank has risen threefold since Tet last February.

Vietcombank cards enable holders to pay electricity, mobile-phone, and water bills and for air tickets through ATMs.

But to encourage institutions to accept cards, the government should offer incentives like lower tax, he said.

According to the Vietnam Banks Association, 48 issuers have issued 24 million cards while there are 11,000 ATMs and 38,000 points of sales in the country.

Source:tuoitrenews