Developing smart payments faster, but they must be safer

Vietnam's State Bank is pushing for faster development of smart payment systems, emphasizing that security and sustainability must keep pace with innovation. The goal is to build a robust digital economy where citizens feel safe using digital payment methods.

Pham Anh Tuan, Director of the Payment Department at the State Bank of Vietnam, highlighted that payments are becoming the "operating system" of the digital economy. However, he stressed that public trust is paramount. "People will not use digital payments if they do not feel safe," he stated, pointing to the increasing sophistication of high-tech fraud and deepfakes.

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People will not use digital payments if they do not feel safe.

Vietnam's digital payment infrastructure has seen significant expansion, with numerous ATMs, POS terminals, and widespread internet and mobile banking services. The banking sector is actively deploying advanced technologies, including biometric authentication, AI for anomaly detection, and real-time risk sharing, to combat fraud. As of late May, the system had issued over 4.4 million alerts, leading to the suspension or cancellation of more than 1.5 million transactions valued at over 5 trillion Vietnamese dong.

Despite these advancements, ensuring financial security and safety remains a key challenge. The State Bank aims to create an ecosystem where innovation thrives while rigorously controlling risks, safeguarding data, and upholding user responsibility. "Technology creates convenience, but trust creates acceptance," Tuan concluded, underscoring the delicate balance required for the digital economy's growth.

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Technology creates convenience, but trust creates acceptance.