Mobile carriers VinaPhone and Viettel have launched a new service that allows users to transfer money by texting.
VinaPhone, Bank for Foreign Trade of Vietnam (Vietcombank) and M-Service began the service on Tuesday, using the existing mobile network of the former. Meanwhile, military-run telecom company Viettel had launched it earlier.
With the MoMo money transfer service in place, beneficiaries can receive money at the nearest MoMo transaction points of VinaPhone. Customers are always updated about all transactions by text messages.
From July 15 to September 30, customers can use the service for free, which is being piloted in southern Vietnam, including HCMC, Binh Duong, Dong Nai, Ba Ria-Vung Tau, Long An, An Giang, Kien Giang, Ca Mau and Dong Thap.
Some 900 MoMo transaction points are already in service in the nine provinces. After the trial period, VinaPhone expects to expand the service to all southern provinces and then central and northern provinces, with the service priced at VND10,000 for a transfer transaction of VND1 million.
Ho Duc Thang, deputy director of VinaPhone, said the service’s target customers are residents in remote areas who have difficult access to banking services.
Unlike money transfer in the banking system, the money transfer limit via the mobile system is VND5 million for one customer a day, without using a bank account.
Similar to VinaPhone’s service, Viettel’s BankPlus has attracted 1.3 million customers up to now. BankPlus customers can transfer money, check bank accounts and pay phone bills without having to install an app or use 3G.
Reportedly there are about 16 million migrant workers in major cities and provinces having demand for transferring money home in the country.