APPLICATION OF AI TECHNOLOGY TO ENSURE SAFETY IN ONLINE PAYMENT TRANSACTIONS

The seminar "Enhancing security and safety in cashless transactions" had the honor of welcoming Deputy Prime Minister Lê Thành Long, leaders of the Ministry of Finance, the State Bank of Vietnam, and leaders of affiliated units (State Securities Commission, State Treasury, General Department of Taxation, Payment Department, Communication Department of SBV…), along with representatives from several central ministries, departments, and agencies; leaders of Ho Chi Minh City, and leaders of provincial departments and agencies.

From NAPAS, the event saw the participation of Mr. Nguyễn Quang Hưng – Chairman of the Board of Directors, Mr. Nguyễn Quang Minh – General Director, Mr. Nguyễn Đăng Hùng – Deputy General Director, along with representatives from various departments of the company.

Mr. Lê Thế Chữ – Editor-in-Chief of Tuổi Trẻ newspaper, delivered the opening speech at the seminar "Enhancing security and safety in cashless transactions" (Photo by Quang Định).

Deputy Governor of the State Bank of Vietnam, Phạm Tiến Dũng, spoke at the seminar. (Photo by Quang Định)

During the program, NAPAS presented the paper "Application of AI Technology to ensure safety in online payment transactions". The content introduced technology for authenticating online payment transactions using NAPAS cards, enhancing user experience and increasing safety and security in online transactions.

This is also one of the tasks set by the State Bank of Vietnam in Decision No. 2345/QĐ-NHNN on "On implementing safety and security solutions in online banking and card payment transactions", which requires card payment service providers to implement authentication solutions 3D Secure (or equivalent) for online payments...

At the beginning of the presentation, Mr. Nguyễn Đăng Hùng, Deputy General Director of NAPAS, mentioned the scale and development potential of e-commerce in Vietnam. According to the Vietnam E-commerce White Paper published by the Ministry of Industry and Trade in 2023, our country currently ranks third in Southeast Asia, after Indonesia and Thailand, in terms of the internet economy. Statistics show that 78% of internet users shop online, and nearly 90% of users accept new payment methods such as cards, bank accounts, and e-wallets. Among them, 81% wish to use bank payment applications for online shopping.

Mr. Nguyễn Đăng Hùng – Deputy General Director of NAPAS presented a paper at the seminar (Photo by Quang Định)

Besides the strong growth rate, the report also highlighted some barriers to the development of e-commerce, such as concerns about personal information disclosure during online transactions, complex procedures when interacting and placing orders on e-commerce websites, and the payment and transaction authentication process.

To improve service quality and promote the development of e-commerce transactions, payment service providers and payment support services have been implementing many solutions to bring a seamless, fast, and secure experience for users in online payment activities.

"Nearly 20 years ago, when NAPAS implemented online airline ticket sales on the websites of airlines such as Vietnam Airlines and Pacific Airlines, customers had to use web browsers on computers (PCs) to complete transactions. Nowadays, it can be seen that e-commerce sites are increasingly supporting the use of mobile phones instead of PC browsers. In fact, most customers now transact on e-commerce platforms through dedicated apps on smartphones." Mr. Hùng noted.

Discussing the customer authentication process, Mr. Hùng stated that previously, banks used the one-time password (OTP) authentication solution. In some cases, banks require additional layers of authentication. This depended on the banks’ perspectives and risk appetites. It is worth noting that these layers of authentication directly impact the seamless customer experience.

The 3D Secure online transaction authentication solution for domestic cards implemented by NAPAS will help balance safety, security, and convenience for customers. This solution supports modern biometric authentication methods (fingerprint, facial recognition) and uses AI-based fraud risk assessment to customize additional verification requirements, minimizing the risk of fraud in customers’ online transactions. By exchanging much larger transaction data than before, banks can gather information about the device, transaction location, transaction value, etc., and analyze this data with previously recorded historical data to assess risk and decide on the appropriate customer authentication method, thereby providing a better payment experience for customers.

Mr. Hùng provided an example: "I do not habitually shop and pay during working hours. I usually do it after 10 PM, before going to bed. If I frequently exhibit this behavior, my payments at that time would be almost instantly accepted by the bank without additional authentication requirements. However, if such transactions occur at 8 AM or another time of the day, additional authentication steps will be triggered to ensure that I am the one making the transaction, not someone else".

This illustrates that compared to the previous, less flexible authentication process, which often required users to enter an OTP, the 3D Secure online payment authentication solution provides a seamless user experience, enhancing safety and security in online payments, and supporting increased e-commerce sales for vendors. Notably, payment service providers can integrate this solution across various platforms, including websites and mobile applications.

As a provider of the national retail payment infrastructure, NAPAS’s payment gateway has connected with 44 banks and financial companies, and 46 payment intermediaries, and linked with the National Public Service Portal and the VNeID application, allowing citizens to choose from a variety of convenient, quick online public service payment methods.

NAPAS representatives receive commemorative plaques from the program. (Photo by Quang Định)

FACIAL RECOGNITION PAYMENT TECHNOLOGY

During the Cashless Festival held from June 14-16, 2024, on Nguyen Hue Street, Ho Chi Minh City, NAPAS, in collaboration with PVcombank, organized an activity to experience biometric payment technology – a payment method based on user facial recognition authentication technology.

This new payment technology not only provides a quick and user-friendly payment experience but also complies with the latest regulations of the State Bank of Vietnam regarding the implementation of safety and security solutions in online and card payments.

Customers only need to "flash a smile’ while scanning their faces to complete the payment transaction from their account quickly (Pay with a smile). The recognition is based on the user’s face stored in the bank’s system and is matched with secure elements on the chip-embedded citizen identity card issued by the Ministry of Public Security. Integrated AI technology assesses fraud risks, helping to minimize the risk of losing money and fraudulent transactions.

Facial recognition payment technology is a growing trend in China and some other countries worldwide. In Vietnam, NAPAS is coordinating with banks to conduct pilot trials. Once officially launched, the service will enhance user experience and security in payment transactions.

In addition to the biometric payment technology experience, NAPAS also gave away thousands of gifts to customers visiting and experiencing NAPAS card tap payments during the Cashless Festival. Customers received many attractive gifts from NAPAS and partners, such as stuffed toys, Koi Thé milk tea, fashion bags, and sports water bottles.

The purpose of NAPAS’s payment experience activities is to introduce new payment technologies and increase public awareness of the benefits of electronic payment methods, thereby encouraging the shift towards cashless spending and daily payments among the peole.