Cashless payments in e-commerce to account for 50% by 2025

The Ministry of Industry and Trade (MoIT) has set a target to increase the cashless payment ratio in e-commerce, especially e-payments through payment intermediaries or applications, to 50% by 2025.

As part of efforts to implement the national plan on e-commerce development, the ministry has set ambitious targets for non-cash payment in e-commerce activities.

Another goal is to raise the ratio of payments conducted through payment intermediary service providers to 80% of non-cash payments in e-commerce activities by 2025.

According to the Centre for Information and Digital Technology (CID) under the MoIT’s E-commerce and Digital Economy Agency (iDEA), the centre has been and will continue to implement various solutions, and develop infrastructure facilities to promote non-cash payments, including the National E-commerce Payment System (Keypay).

In addition, the centre will also focus on researching and developing a secure payment system for e-commerce activities based on the commercial arbitration (ESCROW) method, toward protecting both consumers and sellers in non-cash payment transactions.

To support all parties involved in secured online payment transactions, the centre planned to launch a system that will ensure transaction security in e-commerce activities, which aims to protect consumers' rights in the digital environment and safeguard the interests of all parties involved in online transactions.

The ratio of e-payments via ESCRO is expected to rise, while the rate of cash-on-delivery (COD) payment is projected to decrease.

Attention will be also paid to increasing reliability, thus promoting transactions; resolving disputes with a clear legal basis; and protecting the interests of both buyers and sellers.

Transactions conducted without the involvement of intermediary payment service providers, such as bank transfers, cash deposits at service counters, and postal money transfers, currently make up a significant portion of non-cash payment transactions, the centre said.

This poses potential risks for consumers during transactions because when the goods/services fail to meet requirements, sellers may not accept returns, and consumers may also be unable to complain or be protected in such transactions.

The main reasons for this are the shopping habits of consumers who still use cash, the low trust of consumers in e-payment infrastructure supporting e-commerce activities, and the lack of consistent and coherent measures to protect consumers and sellers in non-cash payment transactions./.

Source: Vietnam News Agency