The intermediary payment services in Vietnam

The intermediary payment services in Vietnam

I. The intermediary payment services in Vietnam

Types of intermediary payment services in Vietnam

1. Service of provision of electronic payment infrastructure shall include:
a) Financial switch service ;
b) Electronic clearing service;
c) Electronic payment gateway service.

2. Support service for payment services shall include:
a) Cash collection and cash payment services;
b) Support service for wire transfer;
c) Digital wallet service

1.1. Financial switch service is a service providing technical infrastructure to connect, transmit and process electronic data to make payment transactions via ATM, POS, Internet, mobile phone and other electronic transaction channels among providers of payment services and /or among providers of intermediary payment services.
1.2. Electronic clearing service is a service providing technical infrastructure to receive, compare payment data and calculate the results of receivable and payable amount of money after clearing among the participating parties being providers of payment services or providers of intermediary payment services to make the payments to the parties involved.
1.3. Electronic payment gateway service is a service providing technical infrastructure to connect between the payment acceptance units and banks to assist customers to make payments in e-commerce transactions, electronic bill payments and other electronic payments.
1.4. Support service of cash collection and cash payment is a service assisting banks in cash collection and cash payment services for customers owning payment accounts, bank cards at the banks through the receiving, processing and sending electronic data messages and calculating results of cash collection and cash payment; cancelling cash collection and cash payment to make payment to the parties involved.
1.5. Support service for wire transfer is a service assisting the reception, transmission and processing of data in the electronic money transfer of banks or mandated by banks.
1.6. Digital wallet service (or E-Wallet service) is a service providing customers with an identified electronic account created on data storage device (such as chips, mobile phone SIM cards, computers ...) by providers of services, allowing to store a monetary value which is guaranteed by the value of equivalent deposit transferred from the payment accounts of customers at banks to payment guarantee account of providers of digital wallet service for the ratio of 1: 1 and used as a means of non-cash payment.

II. Conditions for providing payment intermediary services in Vietnam

The organizations not being banks that wish to provide payment intermediary services must satisfy fully the following requirements:

a) Having a License for establishment or Certificate of business registration issued by competent State agencies;
b) Have the plan for provision of intermediary payment services which must be approved by a competent authority as defined in its Charter and contain, inter alia, the following:
(i) The process of technical operations of the intermediary payment service for which the application for license is submitted, including:  Name and scope of the service, target customers, conditions for using service, diagram and description of steps of the operation, cash flow from the beginning of the service to the finalization of obligations between related parties;
(ii) The mechanism for ensuring the solvency, including:  The mechanism for opening and maintaining balance on the payment guarantee account, and purposes of the payment guarantee account;
(iii) The process of internal inspection and control; risk management, security and confidentiality protection; general rules and internal regulations on anti money laundering; process and procedures for response to trace requests, complaints and denunciations;”
c) Having at least 50 billion VND of charter capital;
d) Personnel requirements:  The legal representative, General Director (or Director) of the organization applying for the license must possess a bachelor”s degree or higher or have at least 03 years of experience in one of the following areas, business administration, economics, finance, banking or law;
Deputy General Director (or Deputy Director) and holders of other key positions in the Plan for provision of intermediary payment services (including heads of departments (divisions) or holders of equivalent positions, and technicians) must possess associate degree or higher in economics, finance, banking, information technology or the area related to their in-charge professional positions;
dd) Technical requirements: There are facilities and technical infrastructure, information technology system and technology solutions that satisfy the requirements for provision of payment intermediary services; back-up technical system independent from the primary system that ensures the safe and continuous service provision when the primary system has problems and in accordance with regulations on safety and security of information technology system in banking operations;
e) With regard to the financial switching, clearing services, the service provider must have the payment between relevant parties settled by another service provider.
g) With regard to payment services provided for a customer holding accounts in multiple banks, the service provider must associate with a provider of switching and clearing services licensed by the State Bank to provide such services during the process of intermediary payment services;

III. The dossier of application for the Licenses to provide payment intermediary services in Vietnam

The dossier of application for the Licenses to provide payment intermediary services includes:

a) The written application for the License according to the form provided by the State bank;
b) The Minutes or the Resolution of the Members, the Board of Directors meeting (or shareholder meeting as prescribed in the Charter of the organization) that pass the scheme for the provision of payment intermediary services;
c) The scheme for the provision of payment intermediary services;
d) The description of technical solution and the written acceptance of technical experiment with another organization;
dd) The documents about personnel: Curricula vitae, authenticated copies or copies issued according to master register or copies with the presentation of originals for collation of the qualifications proving the capability and proficiency of the legal representative, General Director (Director), Deputy General Director (Deputy Director) and the senior officers that execute the Scheme for the provision of payment intermediary services;
e) The establishment license or the enterprise registration certificate issued by a competent authority, charter of organization and operation (authenticated copies or copies issued according to master register or copies with the presentation of originals for collation;

LAWYER VIETNAM LAW FIRM