Some solutions for developing cashless payment in agribank viet nam

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

MAI THỊ TÂM

SOME SOLUTIONS FOR DEVELOPING CASHLESS
PAYMENT IN AGRIBANK VIETNAM
MỘT SỐ GIẢI PHÁP PHÁT TRIỂN THANH TOÁN KHÔNG
DÙNG TIỀN MẶT TẠI AGRIBANK VIETNAM

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

MAI THỊ TÂM

SOME SOLUTIONS FOR DEVELOPING CASHLESS
PAYMENT IN AGRIBANK VIETNAM
MỘT SỐ GIẢI PHÁP PHÁT TRIỂN THANH TOÁN KHÔNG
DÙNG TIỀN MẶT TẠI AGRIBANK VIETNAM

Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. TRẦN NGỌC CA

HÀ NỘI - 2019


DECLARATION
The author confirms that the research outcome in the thesis is the
result of author‘s independent work during study and research period and it is
not yet published in other‘s research and article.
The other‘s research result and documentation (extraction, table,
figure, formula, and other document) used in the thesis are cited properly and
the permission (if required) is given.
The author is responsible in front of the Thesis Assessment
Committee, Hanoi School of Business and Management, and the laws for
above-mentioned declaration.

i


ACKNOWLEDGEMENT
Thesis is the result of research of the author for a long time, by my own
efforts, the enthusiastic guidance of the Associate Professor Tran Ngoc Ca
and contribution of teachers, my colleague.
First, the author would like to express sincerely and deeply thanks to
Associate Professor Tran Ngoc Ca, who has guided, oriented, supported and
encouraged the author throughout the research.
The author would like to express her sincere thanks to the teachers, who have
given the author the knowledge to support, the foundation of reasoning
needed to study this topic. Especially, the contribution and support of the Ha
Noi School of Business (HSB) - Hanoi National University, Vietnam Bank

for Agriculture and Rural Development - Agribank
Finally, the author would like to send deeply thanks to my family, friends
who have always supported, encouraged and facilitated the author to complete
this thesis.
Ha Noi, December 25th 2018
Mai Thi Tam

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TABLE OF CONTENTS
DECLARATION ............................................................................................... i
ACKNOWLEDGEMENT ................................................................................ ii
TABLE OF CONTENTS ................................................................................. iii
ABBREVIATION ............................................................................................ vi
INTRODUCTION ............................................................................................. 1
CHAPTER 1: THEORETICAL BACKGROUND .......................................... 6
1.1. Digital society ......................................................................................... 6
1.2. Cash ........................................................................................................ 7
1.2.1. The history of using cash ................................................................. 7
1.2.2. Cashless society................................................................................ 9
1.2.3. Cashless payment in fact ............................................................... 11
1.2.4. Examples of Cashless Societies ..................................................... 12
1.3. Types of cashless payment in the world ............................................... 13
1.3.1. Cashless Payments Using RFID..................................................... 13
1.3.2. Mobile Payments ............................................................................ 13
1.3.3. Contactless Credit Cards ................................................................ 14
1.3.4. Cheque ............................................................................................ 14
1.3.5. Demand Draft ................................................................................. 15
1.3.6. Online Transfer- NEFT or RTGS .................................................. 15

1.3.7. E-Wallets ........................................................................................ 15
1.3.8. UPI Apps ........................................................................................ 15
1.3.9. Gift Card ......................................................................................... 16
1.3.10. Aadhaar Enabled Payment System .............................................. 16
1.3.11. Unstructured Supplementary Service Data .................................. 16
1.4. Cashless payment in Viet Nam ............................................................. 16
1.4.1. Customers have to appear to bank sites ......................................... 17

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1.4.2. Customers do not need to appear in bank sites .............................. 17
1.5. Cashless payment from the view of Vietnam Government:................. 18
1.5.1. Overall objectives ........................................................................... 18
1.5.2. Specific targets ............................................................................... 19
1.5.3. Solutions: ........................................................................................ 19
CHAPTER 2: STATUS OF CASHLESS PAYMENT IN VIETNAM .......... 21
2.1. Introduction of Agribank Vietnam ....................................................... 21
2.1.1. General information ....................................................................... 21
2.1.2. Business strategy in the 2016-2020 period with a vision to 2030 . 23
2.1.3. Agribank network ........................................................................... 24
2.1.4. Cultural values................................................................................ 25
2.1.5. Contact information: ...................................................................... 27
2.2. Products of cashless payment ............................................................... 28
2.2.1. Personal Cards: ............................................................................... 28
2.2.2 Agribank E- Mobile Banking .......................................................... 36
2.2.3. QR PAY ......................................................................................... 38
2.3. The situation of cashless payment in Agribank in recent years ........... 40
2.4. Results of actual survey research.......................................................... 46
2.4.1. Quantitative research ...................................................................... 46

2.4.2. Qualitative in-depth interview research ......................................... 52
CHAPTER 3: SOLUTION ............................................................................. 58
3.1. Recommended solutions to the Government, ....................................... 58
3.1.1 To Issue a number of policies to encourage electronic payment .... 58
3.1.2. Promote e-payment in public administrative services ................... 59
3.2. Solutions for implementation by Agribank: ......................................... 60
3.2.1. Develop cashless payment in rural areas ....................................... 60
3.2.2. Recruiting and training the staff to meet the increasing demands of
the current market, from the perspective the service providers. .............. 61
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3.2.3. Immediate and Urgent solutions .................................................... 62
3.2.4. Comprehensive solutions and customer classification .................. 63
CONCLUSION, LIMITATION AND IMPLICATION................................. 67
REFERENCES ................................................................................................ 70
Appendix 1: Transaction fee for using international card .............................. 71

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ABBREVIATION
Agribank Vietnam: Vietnam bank for Agriculture and Rural Development
VND: Vietnamese Dong
ATM: Automatic Teller Machine
EDC: Electronic Data Capture
POS: Point of Sales
PIN: Personal Identification Number
ID: Identification Card
QR code: Quick Respose Code

OTP: One Time Password
IPCAS: Internal Payment and Customer Accounting System

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INTRODUCTION
1. Rationale
In the development of Technology in the era 4.0 and of modern society,
cashless payment is the unavoidable path that we have to reach.
Nowadays, if you want to win in competition and become well-known in the
market, you have to catch the new trend of technogy and apply it to your
current business.
Agribank, with a wide network in Vietnam, is one of the largerst firm and
also the largest taxpayment. Its main customers are farmers in the rural areas.
Agribank has reached 2.330 branch and transaction offices located in all 64
province of Vietnam. And it also develops impressively in Hanoi and Ho Chi
Minh City. But the technology does not match with the speed of social
development and still seems quite weak compared with other banks.
Bad debt in Agribank is 49.563 billion Vietnam Dong, about 6.24 % of total
debt (2016), which was mainly in Hanoi, Ho Chi Minh City and Western
Provinces where we can not compete with other commercial banks. With
factual statistics about Vietnam economy it can be seen that profits from loan
bear many risks.
On the other hand, revenue from service is just about 20% of our total benefit.
Developing service is the safer way to increase revenues and decrease risks
in the business.
According to statitstics from the World Bank, Vietnam has the lowest cashless
payment, only 4.9% (2017), so that it has many free places to gain the market
share. We should understand and apply it to our bussiness right now.

I choose the thesis ‗‘Some solution for developing cashless payment in
Agribank Vietnam’’ because this problem is very important and necessary in
banking business. It also helps our bank to overcome difficulties when the
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benefit from loan is not good due to bad debt. Exploiting in service is the
right urgent way that our bank has to change to win the competition with
other banks and may also contribute a right path to the development of our
society.
2. Literature review
The thesis of Dang Cong Hoan (2015), ‗‘Promoting cashless payment for
residential areas in Vietnam‘‘, Hanoi Economic University - Hanoi National
University. The topic has assessed the current state of cashless payment
service in the residential area of our country, clarifying the role of State
policies in promoting and developing payment services. In particular, the
topic has evaluated the cashless payment to the economy and community
according to the time series regression model with the following variables: the
ratio of cashless payment/total cash; GDP per capita and total annual state
budget, to perform correlative analysis. However, this thesis just examines at
the macro level in over all.
According to Bui Thi My Huyen‘s Master thesis: ‗‘completing the cashless
payment activity through bank in Ho Chi Minh‘‘ from Ho Chi Minh
Economics University (2011), by the scientific quote for cashless payment
through banks in comparison with the reality, the subject goes into the
argument for the need to promote cashless payments through banks. In
particular, the topic has addressed the lessons learned in cashless payment
activities of some countries that can be applied in Vietnam and the results
achieved in the implementation of cashless in Vietnam for the period from the
year 2006 to 2010. From researching cashless payment activities in Ho Chi

Minh City, the thesis has assessed the current situation, finding out the
reasons for the inadequacies and ineffectiveness, and then orient and propose
solutions to complete and improve cashless payment via banks in Ho Chi
Minh City.
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Many famous authors also have researched about cashless payment, such as
cashless payment in Vietnam by Master Mai Thi Quynh Nhu (2014). The
writing outlines the limitations and recommendations, and solutions to develop
cashless payment in Vietnam. However, the article only deals with common
issues but not clarifies the limitations and solutions for a particular bank.
Another study is ―Cashless Payment: Trends in the World and reality in
Vietnam‖ by Master Do Thi Lan Phuong from Banking Academy (2014). The
article outlines trends of cashless payment in the world and in Vietnam. Based
on the findings, she quoted some solutions to develop modern cashless
payment products.
The next research is ‖the Cashless Society‖ by Thach An (2015), which
outlines the benefits of using cashless payment services with organization and
individual, the developing potential services and the difficulties and
challenges in Vietnam.
These articles have certain limitations since they just provide overviews of
payment status of cashless payment in our country in recent years and
propose some solutions for development in the coming time. They haven‘t
touched into the depth analysis of the situation studied.
Many theses of Vietnamese students also mentioned cashless payment, such as
Ms. Vu Thi Nhung from Commercial University ‗‘Developing of cashless
payment service in Agribank- Tay Do Branch‘‘ in 2015, Mr Nguyen van Thanh
‗‘Cashless payment in Vietin Bank- Nam Dinh province- the reality and the
solution to change‘‘… all those theses only study the traditional cashless

payment method like cheuque and Payment Order, while not realize the modern
way to use new technology and, mobile app and wifi for the transaction. And
also they limited themselves only to the specific brands and places.
The development of cashless payment services in recent years has been
studied in a wide range of contexts, subjects and researches which has
3


contributed to bring a perfection to the theory system. At the same time, the
authors analyzed and assessed the situation of Vietnam in general and in some
commercial banks in particular, pointed out the achievements and limitations,
and from that proposed appropriate solutions. However, the contents did not go
into deep analysis of the advantages and disadvantages in some specific services.
They just, found out the factors that affected the use in mass of services by
customers. So far, there are no research and studies about Agribank Vietnam.
Thus, this thesis concentrates on the theoretical systemization, practical
application and new perspectives in cashless payment services. Based on
actual service data oft Agribank Vietnam, the researcher analyzed the causes
and limitations, and then gave specific solutions to develop cashless payment
services in Agribank Vietnam.
3. Aims of research
The thesis systematizes the theoretical basis for cashles payment, cashless
society and social benefits of cashless, types of cashless payment methods and
Applying modern technology to it, and based on that, to understand and assess
the current status of cashless payment system at Agribank Vietnam. The thesis
outlines the remaining issues and proposes measures to further develop a more
effective and extensive use of the cashless payment system in order to increase
the competitiveness and position of Agribank on the market today.
4. Objects of research
The subject of the thesis is the cashless payment system in Agribank. It

focuses on three main areas: E-mobile banking, credit card and QR pay.
The thesis will focus on theoretical and practical aspects, and provide
solutions to develop cashless payments applied to Agribank system.
5. Scope of research
Customers in Agribank, who use three types of services E- Mobile banking,
QR PAY and Credit card.
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6. Research methodology:
This research used primary data that were collected from direct interviews
and structured questionnaire.
Moreover, the author applied in-depth interview questions to select 15
customers who used all 3 types of services.
Secondary data: reports about credit cards, e-Mobile, QR pay of Agribank,
numbers and incomes, reports about other banks in Viet Nam.
Primary data: Qualitative study using questionnaires, collecting results from
15 service users and in- depth interview.
From the interview, and questionnaires, weakness could be pointed out
suggestions and solution to improve the situation could be provided.
7. Thesis structure
Besides title and conclusion chapter, the thesis will be structured to three
main chapters:
Chapter 1: Theoretical Background
Chapter 2: Status of cashless payment in Agribank Viet Nam
Chapter 3: Solutions

5

CHAPTER 1: THEORETICAL BACKGROUND
1.1. Digital society
The world, as we know today, is continually changing, and one of the
fundamental drivers is digital transformation. Digital transformation isn‘t only
about Internet ―unicorns‖, it is also about using the latest technology to do
what you already do – but in a better way.
The global economy is undergoing a digital transformation as well, and it‘s
happening at the fastest speed.
So, what is the digital economy? It′s the economic activity that results from
billions of everyday online connections among people, businesses, devices,
data,

and

processes.

The

backbone

of

the

digital

economy

is

hyperconnectivity which means growing interconnectedness of people,
organisations, and machines that results from the Internet, mobile technology
and the internet of things (IoT).
The digital economy is taking shape and undermining conventional notions
about how businesses are structured; how firms interact; and how consumers
obtain services, information, and goods.
Professor Walter Brenner from the University of St. Gallen in Switzerland
states: ―The aggressive use of data is transforming business models,
facilitating new products and services, creating new processes, generating
greater utility, and ushering in a new culture of management.‖
Recently, TechCrunch, a digital economy news site, noted, “Uber, the
world’s largest taxi company, owns no vehicles. Facebook, the world’s most
popular media owner, creates no content. Alibaba, the most valuable retailer,
has no inventory. And Airbnb, the world’s largest accommodation provider,
owns no real estate… Something interesting is happening.

6


In banking service, digital technology will change the way from the old to
new, from low to fast and correct transactions.
1.2. Cash
Cash is money but in the physical form of currency, such as bank notes and
coins. In bookkeeping and finance, cash is the current asset comprising of
currency or currency equivalents which can be accessed immediately or
nearly-immediately (as in the case of money market accounts). Cash is seen
either as a reserve for payments, in case of a structural or incidental
negative cash flow or as a way to avoid a downturn on financial markets.
1.2.1. The history of using cash
In Western Europe, after the fall of the Western Roman Empire, coins, silver

jewelry and hacksilver (silver objects hacked into pieces) were, for centuries,
the only forms of money, until Venetian merchants started using silver bars
for large transactions in the early Middle Ages. In a separate development,
Venetian merchants started using paper bills, instructing their bankers to
make payments. Similar marked silver bars were in use on lands where the
Venetian merchants established representative offices. The Byzantine
Empire and several states in the Balkan area and Kievan Rus also used
marked silver bars for large payments. As the world economy developed and
silver supplies increased, particularly, after the colonization of South
America, coins became larger and a standard coin for international payment
was developed from the 15th century: the Spanish and Spanish colonial coin
of 8 reales. Its counterpart in gold was the Venetian ducat.
Coin types would compete in different markets. By conquering foreign
markets, issuing rulers would enjoy extra income from seigniorages (the
difference between the value of the coin and the value of the metal that the
coin was made of). Successful coin types of high nobility would be copied by
lower nobility for seigniorages. Imitations were usually of a lower weight,
7


undermining the popularity of the original. As feudal states coalesced into
kingdoms, imitation of silver types abated, but gold coins, in particular, the
gold ducat and the gold florin, were still issued as trade coins: coins without a
fixed value, going by weight. Colonial powers, without much success, also
sought to take away market share from Spain by issuing trade coin equivalent
to silver Spanish coins..
In the early of the 17th century, English East India Company coins were
minted in England and shipped to the East.
At this time coins were also being produced at the Madras mint for the East
Indian Companies. The currency at the company‘s Bombay and Bengal

administrative regions was the rupee.
Meanwhile, paper money had been developed. At first, it was thought of for
emergency situations, hence were most popular in the colonies of European
powers. In the 18th century, important paper issuance were made in colonies
such

as Ceylon and

the

bordering

colonies

of Essequibo, Demerara and Berbice.
The ability to create paper money made nation-states responsible for the
management of inflation through controlling money supply. It also created a
direct relation between the metal of the coin and its denomination
superfluous. From 1816, coins generally became token money, though some
large silver and gold coins remained standard coins until 1927. The World
War I saw standard coins disappear to a very large extent. Afterwards,
standard gold coins, mainly British sovereigns, were still used in colonies and
less developed economies, and silver Maria Theresa thalers dated 1780 was
struck as trade coins for countries in East Asia until 1946 and possibly locally
in the later time.
Cash has now become a very small part of the money supply. Its remaining
role is to provide a form of currency storage and payment for those who do
8

not wish to take part in other systems, and make small payments convenient
and prompt, though this latter role is being replaced more and more frequently
by electronic payment systems. Research has found that the demand for cash
decreases as debit card usage increases because merchants need to make less
changes for customer purchases.
Cash is increasing in circulation. The value of the United States dollar in
circulation increased by 42% from 2007 to 2012.The value of pound
sterling banknotes in circulation increased by 29% from 2008 to 2013.The
value of the euro in circulation increased by 34% from August 2008 to
August 2013 (2% of the increase was due to the adoption of euro
in Slovakia 2009 and in Estonia 2011).
1.2.2. Cashless society
A cashless society might sound like something out of science fiction, but
we‘re already on our way. Several powerful forces are behind the move to a
cash-free world, including governments and large financial services
companies. Even critics of the mainstream financial system and governmentissued currencies favor doing away with cash.
But we‘re not yet there. In addition to logistical challenges, we need to
address several social issues before giving up on cash entirely.
Benefits of a Cashless Society
Less crime: With cash, it‘s easy to steal money, whether the amount is large
or small. Also, illegal transactions (drug trade, corruption, money laundering
for example) typically take place with cash, so that there‘s no record of the
transaction—and so that the seller can be certain about getting paid.
Paper trails: Financial crime should also dry up. It is harder to hide income
and evade taxes when there‘s a record of every payment you receive. Money
laundering becomes much harder if the source of funds is always available.
No cash management: It costs money to print bills and coins. Businesses
9

need to store the money, get more when they run out, and deposit cash when
they have too much on hand. Moving money around and protecting large
sums of cash could become a thing of the past.
International payments: When you visit a foreign country, you may need to
buy local currency. But payments are easy if both nations can handle cashless
transactions. Instead of figuring out another currency, your mobile device
handles everything for you.
Disadvantages of a Cash-Free World
Depending on your perspective, going cashless might actually be problematic.
Privacy: Electronic payments mean less privacy. You might trust the
organizations that handle your data, and you might have nothing to hide, but
your payment information could turn up in ways that are impossible to
predict. Cash allows you to spend money and receive funds anonymously.
Hacking: Hackers are the bank robbers and muggers of the electronic world.
In a cashless society, the consequences are higher if somebody drains your
account because you don‘t have any alternative ways to spend. Even if you‘re
protected under federal law, you face significant inconveniences and other
consequences after a breach.
Technology problems: Glitches, outages, and innocent mistakes can also
cause problems, leaving you without the ability to buy things when you need
them. Likewise, merchants have no way to accept payments from customers
when systems malfunction. Even something as simple as a dead phone battery
could leave you ―penniless.‖
Inequality: The poor and unbanked will have an even harder time in a
cashless society. They don‘t have expensive devices for making payments,
and those who operate in the informal economy would have no way to get
paid or receive aid. The U.K. is experimenting with contactless ways to
donate to charities and homeless individuals, but there‘s still a long way to go.
10

Fees, Fees, Fees: If we‘re forced to choose from just a few payment methods,
can we expect financial institutions to give us a fantastic deal? Payment
processors may just cash in on the high volumes, eliminating the savings that
should come from less cash handling.
Overspending: When you spend with cash, you feel the ―pain‖ of every
dollar you spend. But with electronic payments, it‘s easy to swipe, tap, or
click without noticing how much you spend. Consumers will need to renew
their efforts to manage spending.
Negative interest rates: When all money is electronic, governments have the
opportunity to promote negative interest rates. That‘s typically a move to stimulate
national economies, but the result is that money loses purchasing power.
Although there are some advantages and disadvantages, all the governments
try their best to reduce the disadvantages while improve the advantages, so
that our citizens understand and have a habit to move to cashless society.
1.2.3. Cashless payment in fact
Without cash, payments happen electronically. Instead of using paper and
coins to exchange value, you authorize a transfer of funds to another person
or business. The logistics are still developing, but we have some hints on how
a cashless society might evolve.
Credit cards and debit cards are among the most popular cash
alternatives in use today. But cards alone aren‘t enough. Mobile devices will
be the most likely to become the primary tool for payments.
Electronic payment apps, like Zelle, PayPal, and Venmo, are helpful
for P2P payments.
Mobile payment services and mobile wallets like Apple Pay provide
secure, cash-free payments. In developing and developed nations that use
cash sparingly, mobile devices are the most common tools for payments.
Cryptocurrencies are also parts of the discussions: They‘re already used
11

for money transfers, and they introduce competition and innovation that may
help keep costs low. But currently they have risks and regulatory hurdles that
make them impractical for most consumers, so they might not be right for the
widespread use.
1.2.4. Examples of Cashless Societies
Several nations are already making moves to eliminate cash, with the push
coming from both consumers and government bodies. Sweden and India, and
China are three notable examples.
Sweden: It‘s not uncommon to see signs that say ―No cash accepted‖ in
Swedish shops, and some banks no longer handle cash. Cash payments are
only 15 percent of retail sales in Sweden, and some point to Sweden as the
model for a modern cashless society. Consumers are mostly happy with this
situation, but the poor and elderly still struggle with an electronic world.
India: The Indian government banned 500 and 1,000 rupee notes in
November 2016 in an effort to penalize criminals and those working in the
informal economy. The implementation was rushed and controversial, and
roughly 99 percent of those banknotes were deposited—meaning criminals
didn‘t lose much money if any. Electronic transactions increased temporarily,
but fell to pre-demonetization levels in the next year.
China
For 15 year of developing, the mobile payment in China has a value of 16,000
billion USD and use the services of two China‘s giants - Tencent and Alibaba
system. Three year before, Chinese people used to use cash, but the wave of
digital payment has come to China with the high speed. According to
iResearch, 2016, China mobile payment market is valued to 5,5 million
billion USD, 50 times higher compared with the United State market with 112
billion USD.

12


Alipay of Alibaba and Wechat of Tencent are the two popular applications
used in this country, and they have become different payment channels
replacing cash. All people in China use these 2 apps, from the luxury
restaurant to the street shops, taxi and merchant shops.
And can you imagine that digital payment is even used for the street artist.
This is not a strange scene on European Streets. The artist of the Chinese
Center will just perform, while payment will be duty of Alipay and Tencent.
Those examples suggest that going cashless is possible with sufficient
infrastructure and gradual progress. And Vietnam can apply cashless payment
for its society.
1.3. Types of cashless payment in the world
There are many types of cashless payment applied all over the world. And
basing on the condition of their technologies, each country has its own kind.
1.3.1. Cashless Payments Using RFID
RFID technology uses radio waves to track tags containing electronic
information. Tiny RFID tags can be attached to wristbands, lanyards or badges,
and can be scanned using dedicated scanners or modern smartphones.
One of the most popular use cases for RFID, mainly in events, is using the RFID
tags as ‗wallets‘ that attendees use to pay for food, drinks and merchandise (after
topping them up with credits, either before or after the event).
In an RFID payment system, attendees would simply present their wristband
to the vendor, who would then use his or smartphone or dedicated scanner to
charge them for whatever they‘re buying. This can be used alongside
traditional payment methods or as the exclusive way for consumers to
conduct transactions at the event.
1.3.2. Mobile Payments
Mobile payment refers to various apps that turn the smartphones consumers

are already carrying into a digital wallet which can be used to pay for goods
13


and services. Google‘s Wallet (recently rebranded Google Pay) and Apple
Pay have both launched in recent years, and have seen some adoption in the
United States, Europe and Australia.
However, the most significant advances in e-payments have actually been in
China, where Wechat Pay and Alipay have seen massive adoption of their
QR-based mobile payment system; while WhatsApp payments have recently
been launched in India.
With at least one of these apps already available in virtually every eventgoer‘s pocket, it only makes sense to wonder whether mobile wallets are set
to be the standard in cashless payments at events and elsewhere. However, we
believe the answer to that is negative – mostly because these devices rely on
internet connectivity, which is often scarce at remote festivals.
1.3.3. Contactless Credit Cards
Contactless credit cards, such as the ones provided by Visa and Mastercard,
are growing increasingly popular with consumers. These allow credit card
transactions to be completed instantly simply by scanning the card, rather
than the cumbersome method of swiping it in a reader.
Contactless cards are similar to RFID wristbands in that they are both very
fast and easy ways to make payments. However, there are also several key
differences; and similarly to mobile phones, their main drawback as a
cashless payment method at events is that almost all credit card payments are
processed online, which could lead to event operations breaking down or
slowing down during periods of intermittent connectivity.
1.3.4. Cheque
The cheque is one of the oldest methods of cashless payment. It is a known
method to everyone. In this method, you issue a cheque for the specific
amount to someone else. The cheque gets deposited in the respective bank.

The bank processes a payment through a clearing house.
14


The entire transaction done through cheque gets recorded and there is a proof
of payment. However, there are instances where cheque payments get
dishonored due to signature mismatch or insufficient fund. In order to avoid
such issue, you can use other cashless payment options.
1.3.5. Demand Draft
Demand draft is another rudimentary way of cashless transaction. It is a safest
option to receive payment from anyone. Demand draft (DD) never gets
defaulted as it is signed by the banker. The disadvantage of DD and cheque is
you need to visit a bank in order to deposit cheque and demand draft. The
clearance of cheque or DD takes additional time.
1.3.6. Online Transfer- NEFT or RTGS
The third simplest method for the cashless transaction is online transfer using
NEFT or RTGS. In order to do online money transfer, you need internet
banking facility. Online transfer using NEFT or RTGS is comparatively faster
than cheque or DD. Online transfer can be done from anywhere using internet
facility.
1.3.7. E-Wallets
E-wallet is the next cashless payment option. E-wallet can be used to
purchase products starting from grocery to airline tickets. In order to use Ewallets customer and merchant, both require a smartphone with active internet
connection. The most popular example of E-wallet is PayPal. Apart from
PayPal, you can also use Payoneer, Transferwise, Skrill, and PayZa.
After registering for E-wallet you need to link your credit card or debit card
with your E-wallet id. You can use e-wallet for fund transfer or online
shopping. It is a simplest cashless method.
1.3.8. UPI Apps
UPI is a mobile payment system which allows you to do various financial

transactions on your smartphone. UPI allows you to send or receive money
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using virtual payment address without entering bank information. Merchants
can enroll with banks to accept payments using UPI. Like in the case of a
PoS machine, the merchant would require a current account with a bank to
accept UPI payments.
The examples of few UPI Apps are SBI Pay, ICICI Pocket, Axis Pay UPI
App, Union Bank UPI App, PNB UPI, PhonePe, TranZapp etc.
1.3.9. Gift Card
The next cashless payment method is a gift card. Gift Card is a readymade
card and can be purchased from a merchant or from the bank. The gift card is
loaded with a fix cash amount you can purchase any item from the specific
vendor by using a gift card.
1.3.10. Aadhaar Enabled Payment System
Aadhaar Enabled Payment System (AEPS) is one of the best cashless
payment methods. AEPS is like Micro ATM it uses smartphone and a fingerprint scanner for the transaction. In order to use this facility, it is mandatory to
link your Aadhaar card to your bank account. You can use AEPS in order to
perform transaction like Aadhar to Aadhar fund transfer, Cash withdrawal,
Cash deposit etc.
1.3.11. Unstructured Supplementary Service Data
You can use USSD cashless option if you don‘t have a smartphone or internet
connection. Unstructured Supplementary Service Data is mobile banking
service. From any mobile phone, you can dial *99# and use this service. You
can do all these things which are available to a person with smartphone and
internet connection. Almost all banks including SBI, ICICI, BOB, Axis Bank
and PNB supports USSD payment option.
1.4. Cashless payment in Viet Nam
In Vietnam, where the technology platform is not high. From observation in

Agribank and other banks, I realize that some types that can be applied:
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1.4.1. Customers have to appear to bank sites
Cheque:

a printed form,

used instead of money,

to

make payments from your bank account: In Vietnam, we often use this kind
to withdraw money from the bank for our cash payment purpose.
Authorized payment (payment order): for individuals and enterprises: this is
the paper with infomation of payer, receiver, amount of money, authorised
signature and stamp of payers that order the bank to pay to the account of
receivers with the information provided.
Letter of credit: oversea payments or to other countries for goods and
services.
1.4.2. Customers do not need to appear in bank sites
- Mobile banking and internet banking: we load an app on mobile and make
payments and provide identification notice to make sure that you are the
owner of that bank account.
- Master, visa and JCB card: are the products of banks which suppy the
limitation of amound of money for you to make transations when buying
goods and servies.
- QR code payment: is a contactless payment method where a payment is
performed by scanning a QR code via the mobile app. This is an alternative

for doing electronic fund transfer by using a payment terminal. This avoids a
lot of traditional infrastructure serving for electronic payments such
as payment cards, networks, terminal and merchant accounts.
To use a QR code payment the consumers scans the QR code displayed by the
merchant with their phones to pay for their goods. They enter the amount they
have to pay and finally submit. This is a more secure card-not-present method
than others.
ATM card: is often used to withdraw money from ATM for individual
payment purposes.
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