Conditions for providing payment intermediary services in Vietnam

Conditions for providing payment intermediary services in Vietnam (Internet image)

Regarding this issue, LawNe would like to answer as follows:

1. Types of payment intermediary services in Vietnam

According to Clause 1, Article 15 of Decree 101/2012/ND-CP, the payment intermediary services include:

- Provision of electronic payment facilities;

- Payment service support;

- Other payment intermediary services as prescribed by the State bank of Vietnam.

2. Conditions for providing payment intermediary services in Vietnam

According to Clauses 2, 3 and 4, Article 15 of Decree 101/2012/ND-CP (amended in Decree 80/2016/ND-CP) are as follows:

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

- Having an establishment license or enterprise registration certificate issued by a competent authority;

- Having an approved plan for payment intermediary service provisions in accordance with the regulations on investment authority prescribed in their charter, in which at least contains:

+ A process of operations of the requested services, including: Name, scope of supply, customers, conditions of use, diagram and explanation of steps to perform the business, cash flow process from the time of transaction initiation to the settlement of obligations between related parties;

+ A regime for solvency ratio, including: Mechanism for opening and maintaining balance of payment security account, purpose of using payment security account;

+ A process of internal inspection; risk management, assurance of safety and security; general rules and internal regulations on prevention and fighting against money laundering; procedures for actions against trace requests, complaints and dispute; 

- Having at least 50 billion VND of charter capital;

- Requirements of human resources: The legal representative, the General Director (Director) of the applying organization must have proficiency or experience in business administration or their discipline.

The employees that run the payment intermediary services must be proficient in their job;

- 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;

- With regard to the financial switching, clearing services, the service provider must have the payment between relevant parties settled by another service provider.

- 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;

- During the process of service provision, the provider of payment intermediary services must have an administrative accounting information system to ensure the supervision of sources of funds, asset and outcomes of the payment intermediary services.

* A provider of payment intermediary services (other than commercial bank, or branch of foreign bank) that satisfy the requirements prescribed in Clause 2 of Article 15 of Decree 101/2012/ND-CP shall apply for issuance of operation license to provide payment intermediary services as prescribed in Article 16 of Decree 101/2012/ND-CP.

* Any commercial banks or branches of foreign banks that provide digital wallet services shall be subject to the management and inspection of the State Bank of Vietnam.

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