BC Card Partners with Vietnamese Payment Gateway Operator to Strengthen Access to 179 Trillion KRW Annual Market

Local officials from 12 banks gather together... Joining hands to build a 'Cashless Society' in Vietnam

[Asia Economy Reporter Yu Je-hoon] BC Card is teaming up with Vietnam's state-owned payment clearing network operator to target the Vietnamese card market.

On the morning of the 17th, BC Card announced that it signed a Memorandum of Understanding (MOU) on cooperation for non-cash payment promotions with NAPAS (National Payment Corporation of Vietnam), Vietnam's state-owned payment clearing network operator, at its headquarters in Euljiro, Seoul.

The signing ceremony was attended by Choi Won-seok, President of BC Card; Nguyen Dang Hung, Vice President of NAPAS; Ha Van Si?u, Deputy Director of the Vietnam Tourism Authority; and representatives from 12 local banks issuing cards under the NAPAS brand.

NAPAS is an institution under the State Bank of Vietnam, providing various payment services through approximately 18,000 automated teller machines (ATMs) and 260,000 point-of-sale (POS) terminals. It has 48 member banks in Vietnam, with a membership totaling 100 million. BC Card and NAPAS have been closely cooperating since 2017 due to business similarities.

BC Card particularly noted the visit of representatives from 12 local banks, including Vietinbank, Agribank, BIDV (Bank for Investment and Development of Vietnam), and Military Bank, to Korea for the signing ceremony. According to NAPAS, the total card transaction volume in Vietnam last year was $150.5 billion (179 trillion KRW), with $70.7 billion (84 trillion KRW) transacted through these 12 banks alone.

BC Card attributed the visit of these banks to its deep market understanding. BC Card explained that after acquiring 'Wirecard Vietnam,' the leading POS terminal provider in Vietnam, it has built trust with various local stakeholders, and its 40 years of domestic card processing experience and technological expertise have led to this visit.

The core of this MOU is to enhance the convenience of non-cash payments for Vietnamese tourists visiting Korea, linked to the Vietnamese government's goal of transitioning to a 'cashless society' by 2025. Going forward, Vietnamese tourists visiting Korea will be able to shop conveniently at BC Card's largest domestic merchant network (3.4 million merchants) using their domestic cards and QR payments without the need for currency exchange.

According to the State Bank of Vietnam, the Vietnamese credit card market has grown by 23% annually over the past five years (2017?2021). Vietnamese tourists ranked fourth in the number of visitors to Korea (approximately 79,000 as of the end of August), following the United States, China, and the Philippines. NAPAS has been seeking to expand its international payment network in response to the growth of the credit card market and the increase in Vietnamese tourists visiting Korea, and has chosen BC Card as its representative partner in Korea. BC Card explained that this is the result of its efforts to expand the 'nation-to-nation payment network (N2N)' primarily in Southeast Asian countries.

Positive effects are also expected for domestic customers and merchants. Customers planning to visit Vietnam will be able to use local merchants with just BC Card and Paybook QR payments. NAPAS has 2.2 million local merchants in Vietnam, enabling most card-based payments. From the perspective of domestic merchants, an increase in Vietnamese tourists is expected to boost merchant sales.

BC Card will also strengthen collaboration with NAPAS brand issuers. During this visit, key Vietnamese bank officials experienced the domestic NAPAS card payment environment. They directly observed BC Card’s various card-based digital payment technologies, seeking solutions for a cashless society, and plan to jointly conduct future promotions to activate NAPAS cards.

Choi Won-seok, President of BC Card, said, "Since COVID-19, the usage rate of digital financial services among Vietnamese people has reached 90%, and with an average age of 30, Vietnam is a very young country that naturally accepts new payment methods without resistance." He added, "We will continue to make every effort to provide convenient payment experiences to the people of both countries by fully utilizing BC Card’s digital payment capabilities."

This content was produced with the assistance of AI translation services.