Mobile money payment wave

Posted date 20/12/2019

10.072 view

Posted date 20/12/2019

10.072 view

With the explosion of the electronic payment market, in Vietnam, up to 70% of people do not have a bank account with 126 million mobile subscribers today and up to 99% of transactions under 100 thousand are paid in cash. Therefore, it can open up opportunities to access a new form of electronic payment, which is Mobile money. Vietnam is the 91st country to accept this type of payment. So what is mobile money? Is it an electronic wallet? How is mobile money used? The article shares the following contents:

Mobile money is electronic money on mobile subscriptions, allowing customers to deposit money into the network even if they do not have a bank account. Customers can use money in their phone accounts to transfer to each other and pay for small value goods.

Is mobile money an e-wallet?

In essence, e-wallets and mobile money are both electronic accounts used to pay for goods, pay service fees (internet, electricity, water, etc.), and transfer money.

Difference between e-wallet and mobile money:

+ Customer identification, e-wallet customer identification is done by banks, while mobile money is identified by telecommunications network operators.

+ Using an e-wallet, when users want to pay, they will have to transfer money from their bank account to the wallet, then from that wallet pay for goods and services. With mobile money, customers only need a mobile account, and if there is money in the account, they can pay.

How is mobile money used?

Mobile money applies to all customers with mobile phones, whether it is a smart or regular mobile phone, can be used. For prepaid subscribers, customers use to top up their accounts on the phone, top up at a ratio of 1:1, that is, 100 VND topped up through an agent means the customer has 100 VND in the account, the amount spent is the amount topped up, the amount spent is deducted, and for postpaid subscribers, it is like a credit card, debit card, so customers will spend first and pay later.

So, to use mobile money, there is an account on the mobile phone, the account has a balance, use this money to pay for telecommunications services such as messages, calls or internet, but with mobile money customers can use it to buy anything, and it can pay for service fees or transfer money like cash or money in the account. The goal of mobile money is to transact small values aimed at all customers with mobile phones.

How will the money be managed after being paid to the network operator?

When using a mobile account that is simply a telecommunications account, all the money deposited is called purchasing telecommunications services at that time, the network operators will keep and have full rights to use to exploit this source of money. But for mobile money, the money collected from customers when deposited must be kept at commercial banks and the network operators must always maintain that balance greater than or equal to the total balance of customers when deposited. The leader of the payment department said that the State Bank expects the total balance of the mobile money wallet to be equivalent to the amount of money that telecommunications businesses deposit in the bank's security account that is not allowed to do business like some countries, telecommunications companies can go bankrupt at a loss, but the money customers deposit into the wallet must be secured at the bank.

REFERENCES

MSc. Tran Thi Thuy - Lecturer, Faculty of Accounting

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