Treasury, Star Fintech Ink Deal On Salary Payments Using U-money

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On Wednesday, Ms Vanphone Phommasone, Director General of the National Treasury Department, Ministry of Finance, and Mr Luu Manh Ha, General Director of Star Telecom and Star Fintech, signed an agreement for civil servant salary payments of 11 rural districts to be sent by the U-money system. The agreement by The National Treasury Department and Star Fintech Sole Co., Ltd. was signed at Star Telecom Company headquarters in Vientiane.

In attendance was the Deputy Director of Payment System Department of the Bank of the Lao PDR, Mrs. Lammone Simmalaivong, and officials representing the parties concerned.

Under the agreement, Star Telecom’s u-money system will be used to pay the salaries of civil servants in Maed district, Vientiane province; Viengkham, Phonthong and Phoukhoun districts in Luang Prabang province; Kuan district in Huaphan province; Xaysathan district in Xayaboury province; Samphan district in Phongsaly province; Meuang district in Bokeo province; Hom and Longcheng districts in Xaysomboun province; and Xaychamphon district in Borikhamxay province.

The agreement was signed after a satisfactory trial for civil servants in Maed district, Vientiane Province, where government officials received their salary on a set day each month.

The system is a solution to the difficulties experienced in the past, especially in relation to the safety of cash movement and prompt payment of salaries.

The U-money system was introduced to enable the easy payment of civil servants’ salaries in areas with no banks. The system is also known as “mobile money” and is efficient and secure.

Government offices in many rural districts have signed up to use the system. This form of cooperation with government offices is important because U-money provides people in urban and rural areas with an easily accessible financial service.