Napas reduces switching fee to promote cashless payments

Napas said the move would cause losses of at least 15 per cent in revenue this year, but it will help fight the novel coronavirus, or Covid-19.

Napas said it will start the programme from February 25 to help develop local cashless payments and promote the Government’s plans to encourage electronic payments for public services during the epidemic.

Napas will apply free switching for online transactions, including payments for public services performed on the national public service portal, public service portals of ministries, department and local authorities until December 31, 2020.

It will also apply a reduction of 72 per cent for switching fees on interbank quick currency transfers worth VND500,000 (US$21.3) and less. This means a reduction from VND500 to VND1,800 for each transaction.

In response to Napas, the State Bank of Viet Nam (SBV) requested banks formulate a similar policy for its e-payment clients. The central bank appreciated the firm’s efforts in actively coordinating and supporting local cashless payments.

Nguyen Tu Anh, chairman of Napas, said the programme can contribute effectively to the banking system, enterprises and especially people during the epidemic.

Anh said: “2020 is the time to promote payments of public services, and Napas and the local banks should take responsibility in sharing free services with the Government.”

Anh thought the increase in cashless transactions would not only change consumer habits but also help government agencies reduce management and operation costs.

Established in 2004 from the Viet Nam National Financial Switching Joint Stock Company (Banknetvn), Napas has been developed as the national retail payment infrastructure with 49 per cent of SBV’s stake.

The firm is administering and operating a switching system interconnected with more than 18,600 ATMs, 261,000 POS machines and 300 electronic payment companies in the fields of aviation, telecommunications, hotels and tourism, and serving over 100 million cardholders of 48 domestic and international commercial banks operating in Viet Nam.