Rationale
Point of Sale (POS) refers to payment transactions conducted using payment cards through devices supplied by banks or service providers Merchants, including hotels, restaurants, supermarkets, and travel agencies, utilize traditional POS systems or innovative mobile POS technology (mPOS) to facilitate these transactions.
To enhance non-cash payment systems in Vietnam, promoting POS transactions is a vital component of the Non-Cash Payment Development initiative for 2011-2015 and Vision 2020, as outlined in Decision No 2545/QD-TTg by the Prime Minister on December 30, 2016 The objectives include reducing cash transactions to below 10% of total payment methods by the end of 2020 and significantly increasing card payments through POS devices By 2020, the goal is to have 300,000 POS devices installed nationwide, facilitating approximately 200 million transactions annually.
To achieve the objectives of enhancing card payment transactions, it is crucial for the entire banking sector to demonstrate determination and effort, particularly through the State Bank's oversight in coordinating with various ministries, branches, and the National Payment Corporation of Vietnam (Napas) Research indicates that significant limitations persist in expanding the merchant network and developing POS transactions.
- The legal system and policies are still inadequate
- The planning and market development are not synchronous and effective
- There are limitations in the POS system
- Consumers' habits for cash-payment are still hard to change
- Communication has not been focused and properly oriented
Finding out the shortcomings, difficulties to propose solutions to promote payment on POS is very necessary and should be implemented soon.
Objects of research
Objects of research: Payment transaction via POS in Viet Nam
Scope of research
- This topic focuses on the following issues:
From 2013 to 2016, the card payment market in Vietnam experienced significant growth, particularly in POS payment transactions This period saw advancements in payment facilities and the expansion of the POS network, alongside improvements in payment connection infrastructure As a result, there was a notable increase in both the number and value of payment transactions, highlighting the evolving landscape of electronic payments in the country.
This study explores the POS payment services offered by banks in Vietnam, examining the legal framework governing POS card transactions and the pivotal role of the National Payment Corporation of Vietnam in facilitating these payments It further analyzes the advantages, disadvantages, and limitations associated with the development of POS payment systems in the country.
Learning about the development trend of POS technology in the world; The status of the deployment and application of these technologies in Vietnam
Proposing solutions to promote payment through POS in Vietnam based on market research as well as advantages, disadvantages and limitations mentioned above.
Aims of research
- Understanding the status of POS payment in Vietnam
- Understanding the advantages and disadvantages of developing payment via POS
- Understanding the trend of POS payment technology in the world and Vietnam
To enhance POS transactions in Vietnam, it is essential to analyze the pivotal role of the National Payment Corporation of Vietnam Collaborative solutions involving the Ministry of Finance, the State Bank of Vietnam, and commercial banks are crucial for promoting seamless digital payments By integrating efforts across various sectors, we can create a robust framework that encourages the adoption of POS systems, ultimately driving financial inclusion and economic growth in the country.
Research methodology
- Approach: Theoretical approach, then based on practical experience to assess the advantages and disadvantages of the card payment market via POS in
Vietnam From there, the solution can be applied in Vietnam to promote this payment method
- Methods and techniques of research:
Research based on the information available, provide analysis and evaluation to find the right solution
The methodology employed in this research involves a combination of statistical analysis, descriptive techniques, and comparative methods, complemented by graphical representations By integrating theoretical and practical research, the author meticulously collects and organizes data sources to calculate essential indicators for assessing the status of bar connection activities Additionally, the use of tables and graphs enhances the clarity and visual appeal of the findings presented in the thesis.
Thesis Structure
In addition to the introduction, conclusion, table of contents, index of abbreviations, tables, firgure and references, the main contents of the thesis are presented in four chapters:
- Chapter 1: Overview of payment transactions via POS and trends of technology in the world
- Chapter 2: POS transaction Payment markets in Vietnam and implementation status in the National Payment Corporation of Vietnam (Napas)
- Chapter 3: Evaluation the implementation of developing POS transactions in Vietnam and Napas
- Chapter 4: Solutions and recommendations to develop the POS transactions in Vietnam
OVERVIEW OF PAYMENT TRANSACTIONS VIA POS AND
The concept of payment transaction via POS
First of all, to understand the concept of POS transactions, we need to understand the concept of POS - Point of Sale
According to the World Bank, a Point of Sale (POS) system is a device that facilitates the sales process through an interface accessible to sales personnel at transaction locations MasterCard further defines POS as a supervised or unsupervised device positioned at a merchant's location, enabling cardholders to purchase goods or services using cards or contactless payment methods, all while adhering to established standards and security protocols for backend devices.
According to the draft circular on bank card activity by the State Bank of Vietnam, point of sale (POS) systems, including Electronic Data Capture (EDC) and Mobile Point of Sale (mPOS) devices, are essential tools utilized by merchants These card readers and terminals enable cardholders to perform various transactions, such as cash withdrawals, fund transfers, and payments for goods and services, thereby facilitating seamless financial interactions within the network of card issuers and payment organizations.
A Point of Sale (POS) system is primarily used for processing payment transactions for goods and services from merchants, as well as for inquiries, cash withdrawals, and bank transfers There are two main types of POS systems: wired and wireless Wired POS systems operate through a telephone line, requiring a connection for payment processing In contrast, wireless POS systems utilize GPRS, 3G, or Wi-Fi technology, offering greater convenience and flexibility without the need for a fixed line This makes wireless POS ideal for various applications, including sales and delivery, home remittances, and bill payments at events Both wired and wireless POS setups consist of similar components, including POS machines, network cables for internet connectivity, and power sources.
Before the advent of modern POS payment technology, traditional POS machines were regarded as the premier payment solution, offering numerous advantages for all stakeholders These machines significantly enhance payment efficiency for merchants, ultimately boosting their sales performance With a straightforward transaction process, traditional POS machines serve as an ideal alternative to conventional cash payments.
For the concept of "POS transactions," in Vietnam there is no specific concept of POS transactions As defined in Circular No 35/2012 / TT-NHNN on
"Regulations regarding fees for domestic debit card services cover various aspects of POS transactions, which are conducted through card readers at merchant locations These transactions include payments for goods and services, balance inquiries, refunds requested by cardholders, cash withdrawals, and additional card-related activities at POS terminals."
On the other hand, a payment transaction refers to transactions involving financial transfer from one side to another
POS transactions involve the transfer of funds for goods and services, specifically at points of sale, while excluding non-financial activities like balance inquiries The process of making a payment through a POS card is outlined as follows: ĐVCNT (POS).
KHÁCH HÀNG NHTTT TCCM/TCTQT NHPHT
1 Khách hàng yêu cầu thanh toán
6 Phản hồi kết quả xác thực
2 Thu ngân thực hiện quẹt/cắm thẻ vào máy POS và nhập số tiền thanh toán
PIN (với thẻ nội địa) 4 Chuyển thông tin khách hàng tới TCCM/
TCTQT 5 Chuyển thông tin khách hàng tới NHPHT tương ứng để xác thực
6 Phản hồi kết quả xác thực
6 In biên lai giao dịch
7 Khách hàng ký tên trên biên lai giao dịch
Figure 1.1 Transaction process on POS (off-us transaction) Source: NAPAS
The payment process mentioned above applies to both domestic and international cards Specific:
Step 1: Customers request payment by card
Step 2: Cashiers of Merchants swipe / plug the card into the POS machine and enter the payment amount
Step 3: Customers enter personal identification number (PIN) (with domestic debit card) International card does not require the customer to enter a PIN
Step 4: Customer information and billing information is transferred from the Acquirer to NAPAS (with domestic debit card) or card organizations such as Visa, MasterCard, JCB, UnionPay, Amex (with international card), for authentication
Step 5: NAPAS/International switching Card Oragnization forwards customer information to respective Issuers
Customer requests to pay 2 Cashier swipe/plug the card into POS and enter the amount
3 Customer enters the pin (for domestic card) 4 Transfer the customer information to Napas/ICSO 5 Transfer the customer information to CI to authentication
7 Customer signs the receipt and fishish the payment
Customer Merchant Issuer Bank Napas/ICWO Acquirer Bank
Step 6: Issuers reply the authentication results If the information is verified by the Issuer, the transaction is approved Merchants print transaction receipts Step 7: The customer sign the transaction receipt which is printed out and the payment process completed Employees at Merchants are responsible for checking the cardholder's signature on the receipt with the signature on the card to protect the customer and minimize the risk to the customer
On-us transactions, issued by Bank A and processed on Bank A's POS machines, streamline the transaction process by eliminating the need for intermediaries like domestic switching organizations and international card networks For customers, this means that the transaction experience remains consistent and straightforward.
Figure 1.2 Card transaction flow on POS (on-us transaction) Source: The author.
History and development of POS
In 1970, IBM introduced the first POS device, which was connected to a computer that handled main processing tasks, while the POS device solely displayed information without processing transactions By 1973, notable manufacturers like IBM and NCR launched advanced POS models, including the IBM System 3653 and NCR2150, alongside contributions from companies such as Rigitel, TRW, and Datachecked This year also marked the integration of the UPC/EAN barcode scanner into the POS system, enhancing its functionality.
In 1978, the POS equipment was enhanced to support multiple applications and operated on an Apple computer, facilitating customer orders and connecting to a remote printer By 1986, further upgrades to the POS system were implemented, improving its functionality and efficiency.
Issuer = Acquier incorporating a color-graphical interface and a touch screen In the same year, POS systems were operated the same as PCs with the newly born technology IBM4683
Throughout the 1980s and 1990s, credit devices like the VeriFone Tranz 330, Hypercom T7 Plus, and Lipman Nurit 2085 were integrated into POS systems to facilitate safer and easier payments These devices, while simpler than today's technology, have evolved to support multiple applications, including credit, debit, gift, and employee cards, along with personal information verification Modern all-in-one POS machines, especially those using wireless protocols, not only streamline mobile payment processing in settings like restaurants but also manage the entire transaction process efficiently.
Modern POS retail systems are the most advanced and user-friendly computers in the commercial sector These systems often integrate various solutions, such as accounting, inventory tracking, ordering, sales management, customer relationship management (CRM), service management, rental services, activity reporting, and payroll modules While many features are available, users typically focus on specific applications like retail management software and business management tools Today, POS technology has been developed and is widely distributed across the globe.
POS technology development trend in the world
Although widely deployed and used in many part of the world, POS machines have been showing many limitations, specifically:
The high investment cost associated with Point of Sale (POS) machines presents a significant challenge for banks aiming to deploy more devices at merchant locations For wired POS machines, the purchase price is approximately 5 million VND per unit, while wireless POS systems utilizing advanced technology come at an even steeper cost These figures do not account for additional expenses such as warranties, maintenance, and necessary upgrades or new features Consequently, if the transaction volume at a merchant is minimal, banks struggle to recoup their investment, making this a critical barrier to further POS machine deployment.
Most POS machines in use today are wired, requiring a fixed phone line for operation This necessity means that merchants must have an available phone line to accept payments Additionally, the quality of the transmission line directly impacts transaction processing speed, which can lead to customer dissatisfaction and negatively affect the services provided by both merchants and banks.
Installing or configuring POS equipment is a complex process that requires the expertise of bank personnel or equipment suppliers, as it cannot be carried out manually by the merchant's employees.
When a fault arises or maintenance is needed, bank technicians must visit merchants to retrieve equipment for repairs and future installation This process incurs costs in terms of human resources, time, and money for the bank, while also disrupting payment services for merchants.
- It is difficult to expand new POS features and services (for example, the ability to connect POS machines to merchants' sales systems )
Small business units often struggle to adopt POS card payment services due to their limited sales volume, which may not be sufficient to cover associated costs This challenge complicates banks' efforts to extend POS services to all types of merchants.
The rapid rise of mobile devices and the increasing popularity of electronic payment platforms have transformed POS systems, evolving them to utilize mobile phones as a primary payment method alongside traditional cards This shift is supported by advancements in e-commerce infrastructure and information technology, leading to new communication standards for payment data exchange, such as mPOS, NFC, and QR codes.
The use of mobile phones and new payment technologies is becoming more and more popular for a number of reasons:
The swift advancement and widespread adoption of smartphones have transformed global communication As reported by the International Data Corporation (IDC), the total number of smartphones worldwide reached approximately 1.43 billion units by the end of 2015, reflecting a significant growth rate of 9.8% compared to 2014.
In various environments, traditional POS equipment may not be suitable for payment processing, such as during transactions at a buyer's home or when quick payments are needed at bus stations.
The demand for payment methods that operate independently from traditional banking systems has prompted financial technology companies to invest significant resources in developing and promoting their own payment solutions Notable examples of this trend include PayPal, Apple Pay, Google Pay, and Samsung Pay, which offer users alternative payment options that enhance convenience and flexibility.
Some of the payment technologies which are currently used in the world:
Mobile POS (mPOS) is a cutting-edge payment solution that enables the acceptance of various card types, including domestic and international options like Visa, MasterCard, JCB, Amex, and UnionPay, directly on mobile devices This versatile technology caters to a wide range of services, from restaurants and cafes to small businesses and home delivery providers, ensuring both safety and efficiency in transactions.
To effectively utilize mPOS for transactions, Merchants need essential equipment such as a card reader linked to a mobile phone with a payment application, and optionally a PIN pad and Bluetooth printer Modern card readers now often incorporate a PIN pad, allowing Merchants to streamline their payment process with a single device This innovation enhances flexibility, enabling Merchants to accept customer payments anytime and anywhere.
Figure 1.3 mPOS device, source: internet mPos technology has the following advantages and disadvantages:
- Helping the customers to pay quickly and conveniently:
One of the key benefits of mPOS technology is its ability to enhance customer satisfaction by enabling quick and convenient payment options for bills and purchases Customers can complete transactions anywhere without the hassle of long queues, resulting in a more efficient shopping experience This not only increases customer satisfaction but also helps merchants retain business by minimizing wait times.
MPOS empowers merchants to sell and accept payments from virtually anywhere, enabling business growth in diverse environments Whether on the pavement outside their store, at any chosen location, or during deliveries, merchants can conveniently process card payments using a portable mPOS device This innovation eliminates the limitations of traditional in-store sales, allowing for greater flexibility and customer engagement.
Investing in mPOS devices is significantly more affordable compared to traditional POS systems While mPOS solutions do incur some expenses related to hardware, software, and maintenance, these costs are generally much lower than those associated with conventional POS solutions.
mPOS technology offers customers the flexibility to receive transaction receipts either through printing or via SMS and email, catering to their preferences This paperless approach not only enhances convenience but also significantly lowers costs associated with paper and printing.
- Is currently supported by the international card payment platform:
PAYMENT TRANSACTION VIA POS IN VIETNAM AND
Payment transation via POS in Vietnam market
1.1 Overview of POS payment market in Vietnam a The POS network
The development of POS machines by banks has seen significant growth over the years, particularly between 2006 and 2016, as illustrated in the accompanying chart.
Chart 2.1 Growth rate in number of POS machine in Vietnam 2007-2016
According to the Vietnam Banks Card Association, the number of POS machines in Vietnam has surged from approximately 10,000 in 2006 to 270,605 by the end of 2016, reflecting an impressive average annual growth rate of 24%.
Growth rate in number of POS machine in
Number of POS machine Growth rate
As of December 31, 2016, Vietnam had 270,605 POS machines, indicating a relatively low acceptance of card payments, with only 2.5 machines per 1,000 people In comparison, other Asian countries exhibit higher rates, such as Thailand with 5 machines and Malaysia with 8 machines per 1,000 people.
As of December 31, 2016, the Vietnam Banks Card Association reported that major banks dominate the POS machine market, with Vietcombank, Vietinbank, BIDV, and Agribank accounting for a combined total of 81% The market share percentages for these banks are 32%, 30%, 13%, and 6%, respectively.
Chart 2.2 Market share by number of POS in 31/12/2016, source:Data of VBCA b The card payment
As of December 31, 2016, the Vietnam Banks Card Association reported that over 104 million cards were issued by Vietnamese banks, with domestic cards making up approximately 89% of the total and international cards accounting for 11% The market includes a variety of card types, including debit, credit, and prepaid cards, reflecting the diverse preferences of consumers.
Market share by number of POS in 31/12/2016
NH Đầu tư và PT VN
NH Sài Gòn thương tín
NH Sài Gòn Công thương
90.9%, 4.5% and 4.5% respectively The domestic debit card still has the large proportion in the total number of cards issued by banks (88%)
Chart 2.3: The proportion of the number of cards in 31/12/2016
Between 2006 and 2016, Vietnam experienced a remarkable surge in the number of payment cards, with figures in 2016 being approximately 20 times higher than in 2006 According to Timetric, the annual growth rate for the card market in Vietnam from 2013 to 2017 is projected to be 10.79%, increasing from 57.3 million cards in 2013 to 86.4 million by 2017 By December 31, 2016, the total number of cards issued surpassed 104 million, indicating that the growth of payment cards has significantly outpaced market analysts' expectations and predictions.
The below chart shows the growth rate of the number of cards in Vietnam during the period 2006-2016:
The proportion of debit card, credit card, prepaid card in 31/12/2016
Debit card Credit card Prepaid card
The proportion of domestic card and international card in31/12/2016
Chart 2.4: The growth rate in number of cards during period 2006-2016
Source: data of VBCA, sbv.gov.vn
In Vietnam, the average individual possesses over one payment card, often from various banks According to data from the State Bank of Vietnam, by the end of 2016, there were nearly 68.7 million personal payment deposit accounts utilized for services such as card transactions and non-cash payments, highlighting the growing trend of digital payments in the country.
Card transactions are generally classified into two categories: on-us transactions and off-us transactions
- On-us transactions are the card transactions of banks that accepted at the POS provided by these banks The model of work is following:
Number of cards over the years
Number of cards Growth rate
Figure 2.1 The model of on –us POS transaction by domestic card, source: the author
Off-us transactions refer to card transactions made at point-of-sale (POS) terminals at merchants that are affiliated with card payment banks These transactions are processed through the NAPAS system, connecting the merchant's bank to the bank that issued the card All domestic card transactions conducted at these POS terminals are efficiently resolved via NAPAS, ensuring seamless communication between the merchant banks and card issuance banks.
Figure 2.2 The model of off-us POS transaction by domestic card, source: the author
With the international cards, all payment transactions via POS are routed to the international card organization systems
Figure 2.3 Model of POS transaction by international card, source: the author
Acquire Issuer d The POS business model in Merchant network
In alignment with the State Bank's policies to encourage non-cash payments, banks are focusing on expanding their card networks and increasing the number of merchants This growth in the merchant network not only attracts more customers but also enhances the banks' brand visibility, boosts market competitiveness, and ultimately drives higher revenue and profit.
In Vietnam, banks primarily focus on self-developing merchants rather than outsourcing, as this aligns with their business plans and policies Each bank branch is tasked with the goal of expanding their POS and merchant networks By assessing the potential and qualifications of merchants, banks can build relationships and carry out subsequent development steps effectively.
- Sign the contracts that accept the card payments with merchants
- Set up the specifications install the POS machine at merchants
- Provide the documents, give guides and training about accepting the card payments to merchants
Figure 2.4 Progress of implement Merchants acceptance
With this model, banks will manage the monitoring and training merchants
Banks will collaborate with various companies to enhance services for merchants, taking on responsibilities such as renting, maintaining, and caring for POS machines, as well as managing contract implementation.
By this way, banks can reduce the resources for developing and caring merchants A typically example of this model is the cooperation between Vietcombank and Bankmart Company
To enhance their card network, some banks adopt a development strategy that eliminates revenue requirements for merchants, encouraging participation However, if merchants fail to boost sales revenue over time, these banks may retract their equipment and terminate the partnership.
Many large banks continue to set minimum monthly payment revenue targets for POS machines, which is crucial for their service development and promotes increased card payments This strategy not only enhances the efficiency of bank resources but also underscores the importance of POS payment services in the banking sector.
To meet customers' payment needs, many banks now offer card payment services through POS (Point of Sale) systems These POS machines, found in various merchant locations such as restaurants, hotels, supermarkets, and ticket agencies, enable customers to make cashless card payments easily and conveniently.
All banks in Vietnam that offer card payment services through POS terminals support domestic debit card transactions Additionally, international cards including Visa, MasterCard, JCB, Amex, and Union Pay are also accepted for payments at these POS systems.
The types of transactions supported on POS payment devices:
- Purchase transaction: help customers pay bills for goods and services at merchants
- Balance Inquiry transaction: help customers inquire available balance in their account
- Refund transaction: help merchants refund the transacted amount of cash that have been paid to customers
- Void transaction: Help merchants cancel the transacted payment
The status of POS payment at National Payment Corporation in Vietnam (NAPAS)
2.1 Introduction about National Payment Corporation in Vietnam a History
The National Payment Corporation of Vietnam (NAPAS), established in 2004, rebranded from Banknetvnn on February 4, 2016, following its merger with Smartlink Card Services JSC This merger aimed to create a unified card switching center, aligning with directives from the Prime Minister and the State Bank of Vietnam NAPAS is dedicated to developing the national retail payment infrastructure and is licensed by the State Bank to offer financial switching and electronic clearing services across the country The State Bank holds a significant stake in NAPAS, owning 49% of its charter capital.
NAPAS oversees the interconnection switching system, featuring over 17,000 ATMs and 270,000 POS machines, along with 300 electronic payment businesses across aviation, telecommunications, hospitality, and tourism sectors Serving more than 100 million cardholders from 46 domestic and international banks operating in Vietnam, NAPAS plays a crucial role in the country's digital payment landscape.
- Set up a switching payment infrastructure and automated clearing for retail transactions (ACH), complete the national payment infrastructure
- Provide customers with modern and convenient electronic payment services with international quality services; serve all economic sectors and bring the services towards every user
- Pioneer to issue the trend and promote the habit of using domestic cards and payment accounts instead of cash in Vietnam b Organizational structure
NAPAS is a joint stock company operating under Vietnam's Law on Enterprises, featuring a governance structure that includes a General Assembly of Shareholders, a Board of Directors, a Board of Supervisors, and a Board of Management The company's organizational model comprises various functional departments and representative offices, illustrating its comprehensive operational framework.
Figure 2.5: Napas structure organization, source: the author c Napas service
The domestic ATM/POS switching service offers the essential technical infrastructure that links the NAPAS system with its member banks and organizations This connection allows customers of these member entities to seamlessly conduct transactions across their shared ATM and POS networks.
The online payment service provided by NAPAS enables holders of both domestic and international cards from participating members to conveniently pay bills through multiple channels, including websites and mobile applications, for a variety of goods and services.
The International Card Switching Service provides technical infrastructure to support the connection, transmission and processing of electronic data among
NAPAS membership organizations, along with international card and switching organizations, as well as foreign banks, enable customers to conduct transactions seamlessly Customers of NAPAS member services can access and perform transactions across various networks, including ATMs and POS systems, connected to NAPAS, facilitating greater convenience and interoperability among different financial institutions.
The electronic top-up service enables customers with cards or accounts from NAPAS member banks and merchants to conveniently recharge their prepaid accounts—such as mobile phone, gaming, digital content services, e-wallets, and prepaid cards—at any time and from anywhere This service is accessible through various channels offered by NAPAS members, including Internet Banking, Mobile Banking, SMS Banking, Kiosk Banking, ATMs, POS systems, and physical counters.
The Billing service enables customers with cards or accounts from participating NAPAS members to conveniently pay for goods, services, and public utilities, including telecommunications, internet, cable television, insurance, and consumer loans This service offers the flexibility to make payments anytime and from anywhere using various payment methods and channels provided by member banks.
- 24/7 instant interbank fund transfer service:
The 24/7 Instant Interbank Funds Transfer Service enables customers to transfer and receive funds in real time using bank cards or accounts through various channels, including ATMs, internet banking, mobile banking, and counters Napas plays a crucial role in enhancing the development of POS transactions, facilitating seamless and efficient payment solutions for users.
With the operation of the national payment system, the connection and provision of payment solutions with 46 member banks, Napas's role is very important in promoting POS transactions:
To enhance customer experience in Vietnam, it is essential to establish a unified payment identification system by prominently displaying the Napas logo on the front of debit cards and on ATMs/POS terminals This initiative will simplify the process for customers to identify merchants that accept domestic debit card payments, ultimately promoting wider adoption of cashless transactions across the country.
- Napas is the only single unit which is licensed by the State Bank of Vietnam to allow financial switching and electronic clearing
- Napas focuses on developing technology that ensures safety and security in payments through modern payment solutions
Napas serves as a vital link between banks to enhance non-cash payment systems and establish effective policies for the development of POS payments By focusing on customer convenience and aligning with government initiatives aimed at promoting non-cash transactions, Napas is committed to advancing the non-cash payment market through 2020 and beyond.
2.2 Status of POS payments at Napas
Currently, Napas facilitates domestic card payment transactions through POS systems but does not support international card switching at POS This operation is based on agreements with member organizations, including card issuers and acquirers, such as Vietnamese banks and foreign bank branches operating in Vietnam.
Table 2.3 Numer of card and POS of Napas member banks
No Banks Number of cards Number of
The proportion of number of POS
(Source VBCA ) b Apply the new technologies
Napas has developed a tokenization service provider (TSP) technology infrastructure to enhance its traditional POS connections, facilitating partnerships with payment solution providers for banks Recently, Napas collaborated with Samsung Vina to launch the Samsung Pay mobile payment solution for domestic cardholders in Vietnam.
Samsung Pay provides a payment support service for cardholders of member organizations, enabling users to create tokens for secure transactions at merchants instead of using traditional card information A token is a unique serial number that represents the card information during payment transactions This innovative service enhances security and streamlines the payment process for users in Ho Chi Minh City.
- Support card type: Domestic cards
Samsung mobile phones compatible with digital tagging channels include the S8, S8 Plus, S7, S7 Edge, S6 Edge Plus, Note5, A9 Pro (2016), A7 (2016/2017), and A5 (2016) Additionally, payment can be processed through POS channels.