Cashless payment is becoming more popular in Vietnam as it is an irreversible trend for safe and convenient shopping with attractive promotions and discounts.
According to PwC’s report, the number of electronic-wallet users making payments at stores Vietnam has growing faster than the average in Southeast Asia. Up to 61% of consumers now make payments on their mobiles, compared to just 37% in 2018.
The boom of e-wallet
Noncash payment has grown rapidly thanks to the development of e-wallet. Illustrative photo
There are more than 100 fintech companies in Vietnam, of which 26 are licensed by the State Bank of Vietnam (SBV) to provide e-wallet service. By December 31, 2018, more than 4.2 million e-wallets were linked to bank accounts and 10,000 entities accepted cashless payments.
Electronic payments are also thriving in the country. During 2018, the whole banking system handled smoothly VND7.3 trillion (US$317 million) worth of e-wallet transactions, up 25% compared to 2017.
The e-wallet mobile app allows users to shop a variety of products with in-app money including mobile cards, entertainment cards, service payments, and paying bills. Besides, users are also offered various discounts depending on support services in e-wallets.
Among mobile payments, e-wallet is the most dynamic form that has drawn attention from many foreign enterprises, including Singapore-bsed Sea Group seeking for cooperation with Vietnam Esports Development (VED) to launch Airpay service in Vietnam.
Airpay has been widely downloaded and registered after two years of launching thanks to Now.vn delivery and Foody channel – a corporation specializes in reviewing food and drinks in Vietnam.
Another rising mobile app is ZaloPay. Since its 2017 debut, the app has taken the advantage of registered users from parent company VNG - an online entertainment and social media platform.
Noncash payment encouraged
A VISA investigation in March 2019 showed that digital payment is increasingly popular among Vietnamese shopping routines.
The trend mainly rooted in its advantages. With just a few simple steps on smartphones, users can pay for services or make banking transactions quickly.
At the same time, these applications also offer many promotions, incentives that benefit users with noncash payment.
Besides improving infrastructure and payment locations, accelerating promotions is also a significant factor in the fierce race for more downloads and registrations of e-wallet providers.
Momo called for funding to expand the scale and enhanced promotions for users when paying at Circle K convenient chain stores. Meanwhile, besides promotions for new users, ZaloPay and AirPay also offered many incentives for paying electricity, water, Internet and cable TV bills.
The investigation also showed that Vietnamese consumers tend to carry less cash with them.
Half of respondents said they use bank cards and mobile to make payments at least two or three times per week, and 73% said that they use credit or debit cards, up 59% compared to the year before. Meanwhile, 82% of consumers made payments via mobile phones.
A representative from the SBV’s Payment Department said that Vietnam sets a target of all payments would be made in mobile phones in the future, VnExpress reported.
Thus, in the upcoming time, the SBV is going to build, improve and upgrade the national payment infrastructure including inter-banking electronic payment, creating a basis to deploy new payment products and services.