Visa and NextPay sign MoU to promote cashless payments in Vietnam
Visa, the world's leader in digital payments, and NextPay, a provider of comprehensive digital transformation solutions (the parent company of Vimo E-wallet and the mPOS Payment Solution) today signed an MoU to promote cashless payments in Vietnam. Together, Visa and NextPay aim to strengthen the network of merchants that accept digital payments in Vietnam and expedite the application of innovative technologies and payment platforms globally.
Increasing cashless payments is one of the major priorities of the Government of Vietnam in order to accelerate economic growth, digitize the payment infrastructure, and minimize the circulation of cash. In addition to promoting and developing innovative and convenient payment methods for consumers, expanding the network of accepting merchants is one of the key objectives to help develop a more cashless society in Vietnam.
Madame Dang Tuyet Dung, Visa Country Manager for Vietnam and Laos, said: “mPOS technology allows us to connect with more merchants and cardholders in Vietnam than ever before, which is why we’re so excited to be launching this partnership with NextPay. SMEs make up the vast majority of businesses in Vietnam, and mPOS makes it even easier for these businesses to accept digital payments, allowing more individuals and businesses to participate in the digital economy.”
mPOS, or Mobile Point-of-Sale, uses a small payment card reader and a mobile app, giving merchants similar functionality to a traditional POS system. In recent years, NextPay has been one of the pioneers in developing the mPOS payment network. The company, in cooperation with key banks in Vietnam, has released more than 40,000 of these payment terminals to the market and has become the leading enterprise in helping to develop a network of new merchants. NextPay has set a goal of further expanding to a community of 300,000 merchants in Vietnam by 2023.
According to the MoU, Visa will provide consulting on business strategy, technological support, and practical global experience in implementing and developing e-payments, helping NextPay to deploy appropriate plans and strategies for the Vietnamese market. The two parties will also cooperate on branding and other actions to encourage customers to use e-payments instead of cash.
mPOS systems can also accept contactless payments, which allow consumers to simply tap their card, phone, or wearable against a terminal to pay. According to the Visa Consumer Payment Attitudes study1, 37 percent of Vietnamese consumers said they are using contactless card payments, while 42 percent are currently using mobile contactless payments. Mr. Nguyen Huu Tuat, NextPay CEO, said: “Having the chance to cooperate with Visa is a great honor for NextPay. When working with Visa, the largest payment network in the world, NextPay hopes to contribute to the transformation of the payment market in Vietnam, bringing ultimate value to customers and businesses, especially small and medium enterprises, which have not yet deployed electronic payments.”
NextPay and Visa will be working together on developing economic potential across 64 provinces and cities nationwide by providing the market with innovative payment methods and services. The comprehensive cooperation between NextPay and Visa will be of great significance in the context of rapid evolution of digital payments, promising to bring the most optimal payment solutions for a cashless society in Vietnam and together aiming for digital transformation.
1 The study was prepared by ENGINE Insights in 2019, surveyed 1,020 people across the country who are working part or full time with a demographic mix that sought to create a representative mix of ages and genders.
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.
NextPay has a diversified products range, including mPOS payment solutions, NextPos business management software, NextInvoice e-invoice, and NextLend fund, to support businesses and small business households to operate effectively in the era of digitization. The application of modern technologies in payments will help stores and businesses optimize the payment process, as well as sales, cash flow, revenue and invoice management, while saving on costs and minimizing the risk of loss. Moreover, the 0% interest installment payment solution for mPOS will help businesses and stores easily draw customers’ attention to purchase the product, helping sales volumes to increase an expected 3-5 times higher than before.