In the context of rapid digital economic development, cashless payments are becoming increasingly essential across all sectors. To improve the legal framework and regulate the operation of intermediary payment service providers, the Government issued Decree No. 52/2024/NĐ-CP on Cashless Payment on May 15, 2024, effective from July 1, 2024.
This is an important legal basis that establishes standards for operational conditions, technical requirements, human resources, and system integration for organizations providing intermediary payment services (IPS) in Vietnam, including:
According to Clause 1 Article 22 of Decree No. 52/2024/NĐ-CP, the following intermediary payment services are permitted:
These services may only be implemented in full compliance with the regulations of the State Bank of Vietnam (SBV).
According to Clause 2 Article 22, organizations that are neither banks nor foreign bank branches must meet eight mandatory groups of conditions. These conditions must be maintained throughout their operational period.
2.1. Legal Status and Operational Requirements
The organization must have an Establishment license or Enterprise registration certificate issued by a competent state agency.
Not undergoing any process of restructuring (division, separation, merger, consolidation, dissolution,…).
For organizations providing financial switching services or automated clearing house services, the organization must ensure that it does not deal in business lines other than provision of payment intermediary services.
2.2. Paid-Up Charter Capital Requirements
Minimum of VND 50 billion: for e-wallet services, collection and payment support services and electronic payment gateway services.
Minimum of VND 300 billion: for financial switching services, international financial switching services, and electronic clearing services.
All capital contributions must be clear, legal, and the organization is fully responsible for the legitimacy of these funds.
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2.3. A scheme on provision of payment intermediary services
The organization is required to prepare and submit a scheme on provision of payment intermediary services in accordance with Form No. 08 (Decree 52/2024/NĐ-CP). The scheme must be approved by a competent authority as stated in the organization’s charter.
2.4. Management and Executive Personnel Requirements
The organization’s legal representative(s) and Chief Executive Officer must possess a university or higher degree in economics, business administration, law or information technology.
Have at least 05 years’ experience of acting as a managerial or executive officer of a finance or banking institution.
the organization must ensure that it always has at least one legal representative residing in Vietnam.
The Chief Operations Officer(s) and key staff engaged in the implementation of the scheme on provision of payment intermediary services (including division heads or equivalent title holders and technical staff) must possess a college or higher degree in economics, business administration, law, information technology or another field relevant to their positions.
2.5. Technical Solutions
Have a description of the technical solution serving the provision of the payment intermediary service(s) for which the organization applies for a license.
Meet the requirements for assurance of information system security at level 3 in accordance with law.
2.6. Special Conditions for E-wallets services and collection and payment support services
When providing services to customers with accounts at opened at multiple banks and foreign bank branches, the organization must connect to a financial transaction switching and clearing of obligations licensed by the State Bank of Vietnam.
2.7. Specific Conditions for Financial Transaction Switching and Clearing of Obligations
In addition to the general requirements, organizations must also:
Connect with at least 50 banks (whose total charter capital represents more than 65% of the banking system).
Sign agreements with 20 intermediary payment service organizations.
Have infrastructure that complies with level 4 security standards and is capable of integration and connection with the systems of affiliated units.
Ensure the capacity to process at least 10 million payment transactions per day.
Each participating organization may not connect to more than 02 financial switching service or automated clearing house service providers.
2.8. Specific Conditions for International Financial Switching Services
Must have a valid license for provision of financial switching payment intermediary services.
Must be connected to a legitimate international payment system, have a clear technical operation process, and internal standards regarding the selection of connection partners.
2.9. Implementation Timeline After Licensing
Within a maximum of 6 months from the date of license issuance, the organization must officially deploy its technical system and provide intermediary payment services to the market. Service deployment is only permitted after all technical and connection requirements specified in Sections 2.4, 2.7, and 2.8 have been fully met.
With the introduction of Decree 52/2024/ND-CP, the legal environment is steadily becoming stricter and more transparent, providing a foundation for the sustainable development of Vietnam's fintech market.
However, along with these opportunities come increasingly stringent requirements for technology, capital, and personnel necessitating thorough and professional preparation by enterprises from the very beginning.
With a team of experienced lawyers in finance - banking, and technology, CDR Counsels stands ready to support:
