Skip to content
technology — Markets — Finance — Business — Ai

Financial institutions rapidly broaden the reach of payment agents

Partnership with payment agents enriches banks, clients, and merchants alike, as these agents extend indirect financial services, thus broadening the array of goods and services offered by retailers.

,   and  Administrator
2 min read
Banks' partners gain advantageous effects from the payment agent model, as it indirectly offers...
Banks' partners gain advantageous effects from the payment agent model, as it indirectly offers supplementary financial services to these retailers, thereby aiding in the diversification of the products they offer.

Shifting Gears: The Rise of Payment Agent Models in Vietnamese Banks

Financial institutions rapidly broaden the reach of payment agents

In a bid to amplify financial inclusion, increase market coverage, and lower costs, Vietnamese banks are embracing payment agent models. This strategy is backed by regulatory guidelines like Circular No. 07/2024/TT-NHNN, regulating payment agent activities.

Cutting Costs

  1. Lower Operational Burden: Payment agents provide a cost-effective alternative to setting up new branches. This reduction in operational costs is a key advantage.
  2. Efficiency through Scale: By tapping into existing networks (like retail stores), banks can enjoy the benefits of economies of scale—decreasing the expense per transaction.
  3. Streamlined Services: Payment agents assume routine tasks, allowing banks to channel resources towards more complex financial operations.

Market Dominance

  1. Extended Reach: These models enable banks to penetrate remote regions where establishing traditional banking infrastructure may be unfeasible.
  2. Customer Esteem: By providing banking services at popular spots such as retail stores or post offices, banks can enhance customer satisfaction.
  3. Unserved Populations: The expansion into rural areas can boost financial access for the underbanked.

The Ups and Downs

  1. Regulatory Navigation: Complying with guidelines, like Circular No. 07/2024/TT-NHNN, is essential but can be challenging.
  2. Risk Management: Ensuring the security of transactions and managing risks arising from third-party agents is crucial.
  3. Quality Assurance: Training and supporting payment agents is vital to maintain service quality and minimize errors.
  4. A Competitive Landscape: Competition intensifies as various banks and fintech firms extend their payment agent networks.
  5. Technological Integration: Flawless integration with current banking systems and technology platforms is crucial for smoothly operating systems.

In a Nutshell

MB has announced its cooperation with Viettel Store to deploy transaction points at nearly 400 supermarkets nationwide since the end of May 2025. Photo courtesy of the bank

The proliferation of payment agent models in Vietnamese banks opens doors for cost savings, market expansion, and increased financial inclusion. However, successfully navigating challenges related to compliance, security, and technology integration is vital for these models to thrive.

Sources:* Circular No. 07/2024/TT-NHNN: Regulating Payment Agent Activities* Vietnam Banks Expand Payment Agent Networks

The implementation of payment agent models in Vietnamese banks allows for cost savings and market expansion, as these models offer a cost-effective alternative to setting up new branches, and enable banks to penetrate remote regions where establishing traditional banking infrastructure may be impractical. Simultaneously, the success of these models hinges on navigating challenges associated with compliance, ensuring the security of transactions, managing risks from third-party agents, maintaining service quality, and integrating seamlessly with existing banking technology.

Read also:

    Related

    Latest