Also in attendance are banks, e-commerce companies, intermediary payments service providers, fashion, food and consumer products businesses, and utility firms.

Organised by the State Bank of Vietnam’s payment and communications departments, Tuổi Trẻ newspaper, the city Department of Industry and Trade, the Vietnam United Youth League, and the National Payment Corporation of Việt Nam, the three-day festival is among a series of events supporting the 2024 Cashless Day (June 16) meant to propagate the Government's policy of promoting cashless payments and creating a cashless society.

The 2024 Cashless Day Festival opens at the Nguyễn Huệ pedestrian plaza in HCM City on June 14. — Photo courtesy of tuoitre.vn

Lê Thế Chữ, editor-in-chief of Tuổi Trẻ newspaper, called it a “special event” that helps popularise non-cash payments and enhance payment security.

The event is organised in the form of a miniature cashless society model where residents and tourists can try a wide range of cashless payment solutions, and learn about the security and safety of their transactions.

Visitors can get gifts when they participate in these activities.

For instance, after checking out e-wallet MoMo’s technologies and services, including Face Payment, they can get keychains, tote bags, soft drinks, and thousands of vouchers for food and beverages.

MoMo considers its Face Payment technology, which uses AI-powered biometrics to ensure safe online payments, one of the most popular cashless payment methods now.

Besides exploring new payment methods, visitors can enjoy concerts by popular singers.

A conference on improving the safety of cashless transactions was held, with Phạm Anh Tuấn, director of the State Bank of Vietnam's payment department, presenting an overview of cashless payment growth in the country and issues related to security and confidentiality.

Non-cash payments have seen rapid growth in Việt Nam, especially through mobile channels and QR codes, he said.

As of April the country had 85 payment service providers offering internet-based payment services and 52 credit institutions offering mobile payment services.

A visitor experiences new payment technology at the 2024 Cashless Day Festival that is being held in HCM City from June 14 to 16. — Photo courtesy of MoMo

In the first four months there were 4.9 billion cashless payments worth VNĐ87 quadrillion (US$3.4 trillion), 57.11 per cent and 39.59 per cent up from the same period last year.

QR codes accounted for VNĐ126.8 trillion and 101.2 million transactions, increases of 424.5 per cent and 167.2 per cent.

There were 182 million personal payment accounts as of 2023, with 87 per cent of adults owning an account.

Tuấn said the banking industry also faces security challenges, especially with criminals using technology to defraud and steal money and assets “using many sophisticated tricks.”

It would continue to focus on strengthening the laws and policies to ensure security and creating a legal framework to deploy new technologies to improve customer safety, he said.

To enhance security, from July 1 the central bank requires credit institutions and payment intermediaries to use biometric authentication for transactions of over VNĐ10 million and VNĐ20 million in a day.

When a customer transacts for the first time on the mobile banking app or on a new device too, they need biometric authentication.

Banks are also actively cleaning customer data, removing unauthorised accounts to enhance security.

Deputy Minister of Industry and Trade Phan Thị Thắng said non-cash payments help improve payment efficiency in the economy and State management of tax.

E-commerce only accounts for 8 per cent of the country’s retail sales, much lower than the world average of 19.4 per cent, she said.

Cashless payments account for only 50 per cent of e-commerce, which means there is great potential for growth, she said.

She added that her ministry would promote cashless payment and make people feel secure while shopping since going cashless is an inevitable trend.