Cashless payments reign supreme in Vietnam

DNHN - Vietnamese people are carrying less cash in their wallets as QR code payments explode alongside the growth of e-wallets. According to a Visa survey, 62% of respondents use QR code payments.

According to the 2023 Consumer Payment Attitudes study recently released by Visa, Vietnamese people go an average of 11 consecutive days per month without spending cash, nearly four times more than in 2022.

56% of users surveyed said they carry less cash. “This leads to them not keeping money in their wallets and spending less cash,” said Dang Tuyet Dung, Visa Country Manager for Vietnam and Laos.

Another signal in the market also shows that Vietnamese people are gradually reducing their demand for cash withdrawals. Data from the State Bank of Vietnam shows that as of the end of January, there were 20,986 ATMs in the market, a decrease of nearly 2% compared to the same period in 2023. The phenomenon of ATM congestion that is often seen during holidays and Tet is no longer occurring.

Vietnamese people are carrying less cash in their wallets as QR code payments explode alongside the growth of e-wallets. According to a Visa survey, 62% of respondents use QR code payments. On average, Vietnamese people scan this code 16.2 times a month, higher than using cards (about 12-13 times a month).

For example, payment technology company Payoo saw the value of QR code payments in its network increase threefold last year compared to 2022. Scanning the code to pay is also faster than other methods, such as domestic ATM cards (10%) and international credit cards (nearly 30%).

In particular, young Gen X and Gen Y users are currently playing a pioneering role in driving the growth of cashless payments, with 89% of survey participants successfully accessing digital payment methods in their daily lives.

According to the research, the growth of cashless payment methods, especially via QR codes and e-wallets, can be seen in sectors such as food and beverage, retail, and convenience stores. In addition, in-store shopping is also witnessing significant changes as many retailers are now actively applying artificial intelligence (AI) technology to bring new shopping experiences to users, thereby aiming to boost revenue.

Visa’s research shows that the payment trends that are shaping the cashless economy in Vietnam are also opening up significant strides that promise to bring about a significant transformation in the payment-finance landscape shortly.

According to Visa, Vietnam is among the top Southeast Asian markets welcoming the largest number of new users using e-wallets as a preferred payment method, contributing to the growth of digital financial services. The report shows that at least 4 out of 5 Vietnamese consumers use e-wallets regularly, with the majority being Gen X users and affluent consumers.

Recently, real-time payments (RTP) have gradually gained a foothold with significant coverage, a testament to the country’s strength in embracing modern financial technologies. Real-time payment methods have proven to be both efficient and fast and convenient, and have also gradually created momentum for the digitisation of the economy to take place more actively.

In Vietnam, RTP is becoming increasingly popular, with at least 2 out of 5 consumers saying they have used this solution. The application of RTP in consumer life is also becoming more diverse, including cross-border transactions, P2P money transfers, payments to merchants and retailers, and bill payments.

At the same time, buy now pay later (BNPL) is becoming increasingly popular and is of interest to many Vietnamese users, thanks to its ability to provide flexible payment options. The strategic partnership between Visa and leading Vietnamese retailers in Visa Instalment Solutions is an example of the groundbreaking impact of these diverse digital payment types in promoting financial inclusion and business growth.

Although credit cards are less commonly used to top up e-wallets, they have become the preferred choice for BNPL payments in Vietnam. Along with easy-to-use applications, free discount codes, rewards programmes, and easy payment tracking are a series of key drivers increasing the use of BNPL services.

Visa believes that the wave of the cashless economy in Vietnam is bringing with it a wealth of growth and innovation potential, opening up opportunities for both consumers and businesses in a context where cashless payments are changing every day. Looking towards the future of convenient and secure digital transactions for the community, Visa will continue to play a leading role in the journey of creative digital transformation, promoting the digital economy in Vietnam.

Lan Anh