Mobile Money is considered a safe, convenient financial solution in Vietnam. (Photo: Linh Anh)

Mobile Money is a financial solution that allows people to send or receive money, spend money, shop, and make payments by mobile phone without any intermediaries. The money account is the subscribed mobile number.

The biggest difference between Mobile Money and an e-wallet is that a customer can pay for services and goods of small value without a bank account.

In addition, Mobile Money accounts can be used on "feature phones" that do not have an internet connection.

Nguyen Hai Duong, the owner of a flower shop in Ha Dong district in Hanoi, commented on the service after using Mobile Money for a period of time.

“Customers used to have difficulty paying by money transfer before the Mobile Money service was available. Now I can receive money as soon as customers do one operation on a black and white phone. It's very convenient,"  said Duong.

According to a representative of the State Bank of Vietnam, the fact that Mobile Money can operate without a bank account will make it possible for the service to reach a large number of users in Vietnam, especially the elderly or people in rural and remote areas, who have trouble opening a bank account.

Mobile Money can be used for small-value transactions, such as buying things at groceries, eating at street food stalls, and buying books and newspapers. The method will reduce the use of cash and move towards a cashless digital economy.

Pham Tien Dung, SBV's Deputy Governor (Photo: Vietnam+)

Pham Tien Dung, Deputy Governor of the State Bank of Vietnam, said, “With the large customer base and the way we’ve been implementing cashless payment programs in the past, I hope the digital ecosystem will be expanded and Mobile Money users can pay for a variety of goods and services”

Although Mobile Money is easy to use, telecom operators must ensure that subscribers have the correct identification information to provide services, and bring convenience and trust to customers. The information check will help avoid fraud.

Representatives of telecom operators deploying the service have expressed their confidence in the high security level of Mobile Money.

Ngan Dien Hy, Deputy Director General of VNPT Group, said that the Mobile Money service deployed by VNPT is integrated with modern technologies used by the banking and telecommunications industries, including Electronic Know Your Customer (eKYC), AI, big data analysis (Big Data), Machine Learning (ML), and QR codes and contactless payment solutions like NFC and sound waves.

Mobile Money accounts are managed on secure technical infrastructure systems meeting international security standards such as PCI-DSS (Payment Card Industry Data Security Standard).

The money in Mobile Money accounts is guaranteed by the State Bank of Vietnam under the same regulations that apply to bank accounts, said Hy.

“VNPT applies strict risk management control processes and tools to ensure absolute safety for customers who use VNPT's Mobile Money services,” said Hy.

International financial institutions say the global Mobile Money market will grow to 12 billion USD by 2024, contributing 0.5% of economic growth.

At the end of last year, Vietnam had about 130 million mobile phone subscribers and mobile network coverage had reached 99.8% of the population. 60 million people, 69% of the population, had no bank account.