Eight banks connect POS network

Two young women withdraw cash at an ATM operated by Vietcombank. Cardholders now find non-cash payments easier as Vietcombank and seven other lenders on Tuesday had their networks connected to points of sale outlets - Photo: Kinh Luan

HANOI –Eight banks on Tuesday started connecting their networks to points of sale outlets accepting local debit cards (POS), creating more convenience for card holders.

The eight banks are Vietcombank, Agribank, Vietinbank, BIDV, Techcombank, VIB, SeABank, and OceanBank.

Card holders of any one of eight banks can use their cards to pay at all the banks’ POS outlets. That will help banks to save costs and widening POS network and reduce pressure on the ATM system, said a statement from State Bank of Vietnam.

POS machines can be found at supermarket checkouts, trade centers, restaurants, hotels, taxis, and hospitals. The connection aims to carry out Vietnam’s target of reducing cash usage in the economy.

The POS connection is the first phase of the Government’s program strengthening payment without cash. Other banks such as Maritime Bank, Eximbank and Saigon Bank for Industry and Trade will join the network in the near future.

According to the State Bank of Vietnam, there are about 27 million card holders, 11,000 ATMs, and 42,000 POS machines nationwide. During 2006-2010, card holders grew by 150% to 200% per year but deposits by cards account for less than 5% of card transactions. Withdrawing cash via ATM accounts for 80% of total card transactions.