Wednesday, November 26, 2008

Online payments open nation to e-commerce

A new online payment portal, PayNet, is set to open up the world of e-commerce in Vietnam after being launched at a ceremony on Nov. 22.

Paynet chief executive officer Nguyen Chien Thang, said he was optimistic about the development of the online payment system in Vietnam over the next few years.

Vietnam currently boasts more than 60 million mobile subscribers, 15 million bank accounts and more than 20 million people access and use the internet. That means huge potential for online payment service providers, he said.


Paynet online payment portal, which could be reached at http://netcash.paynet.vn , will function similarly to Paypal in the United States , which has more than 160 million accounts globally, or to Chinese Alipay that has around 100 million online payment accounts.

In order to ensure the privacy and security of sellers and buyers, the portal is made based on OpenWay’s Way4 technology. Buyers can make online transactions via the portal without having bank accounts, Visa and Master Card like other portals in Vietnam .

Each customer will set up an account with a private code number, to be able to do online shopping. All the money that buyers put into the account will be deposited into banks after being transferred to sellers. All transactions will be followed up with email or SMS mobile phone message.

Present, the portal is on a trial run at e-commerce floor www.hlink.vn .

Thang said he hoped the portal would soon become a standard system and would make an active contribution to fostering the development of online payments in the country.

According to the Ministry of Industry and Trade, 30 of the country’s 63 cities and provinces have approved e-commerce development plans, and a number of leading international firms in the field of electronic payment systems have targeted the Vietnamese market.

The expansion of e-commerce has been made easier by the creation of a legal framework. The Law on Electronic Payments was passed in 2006. The Government also issued Decree No. 57/2006/ND-CP stipulating that electronic documents have the same legal validity as traditional paper documents. The decree applies to all commercial activities such as soliciting and accepting offers and signing and implementing contracts.

The e-commerce sector, however, still has hurdles to overcome. They include poor network security, a common distrust of e-commerce among the general population, a relatively new and untested legal framework, and the lack of a comprehensive and reliable goods delivery system.
Source: VNA

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