What are the most common payment tools used by Vietnamese?

introductory

With the rapid development of the digital economy, Vietnam's e-payment market has seen explosive growth in recent years. As one of the most dynamic economies in Southeast Asia, Vietnam's payment ecosystem is undergoing unprecedented changes. In this article, we will provide an in-depth analysis of the payment tools most commonly used by Vietnamese consumers today, including traditional methods and emerging digital payment solutions.

The status of cash in Vietnam

Despite the rapid growth of electronic payments.Cash is still the basis for many transactions::

• The first choice for everyday small transactions: Scenes such as food markets and street vendors are still cash-based
• Widespread use in rural areas: Reliance on cash in areas with low banking coverage
• Influence of cultural practices: Older consumers have more trust in "visible and tangible" money

The data shows that about 801 TP3T of transactions will still be done through cash in 2022, but that percentage is declining every year.

Popularity of card payments

ATM and debit cards

1. Cards issued by domestic banks dominate the market

   • State-owned commercial banks such as Vietcombank, VietinBank, BIDV and others have the main share
   • Techcombank, VPBank and other joint-stock banks grow rapidly

2. Characteristics of use

   • ATM cash withdrawal is still the main function
   • Gradual increase in POS card spending (average annual growth rate of about 15%)
   • Most support local chip card standards and international networks (Visa/Mastercard)

Current status of credit card development

Credit card penetration is relatively low but growing at an alarming rate

• Card issuance topped 10 million in 2023 (up 25% year-on-year)
• Mainly for upper-middle-income groups and large purchases
• Shinhan Bank, HSBC and other foreign banks offer high-end products

MoMo - The Leader in Mobile Payments

As a local star company, MoMo has become theE-wallet with the highest number of users

Core strengths:
√ Over 30 million registered users (40%+ of the adult population)
√ Coverage of over 200,000 offline collection points
√ Supports more than 50 services such as utility bill payment, mobile phone top-up, etc.

Update:
→ Expanding the financial ecosystem with the launch of the MoMo credit service
→ Strategic partnership with Grab to enhance mobility coverage

ZaloPay - a contender with added social attributes

Backed by the Zalo social platform (70 million users), ZaloPay shows a unique advantage:

–Seamless social transfer experience
–High-frequency application scenarios such as game top-up
–Chinese New Year Red Packet Campaign Creates Explosive Growth

The market share has reached 18% and is particularly well accepted among the younger age groups.

ShopeePay - the rising star of e-commerce drive

Rely on the powerful infusion of Shopee's e-commerce platform:
◆ Order payment auto jump to enhance the conversion rate
◆ Free shipping incentives to develop user habits
◆ Live broadcast with instant payment feature innovation

Bank App Direct Payment

Major banks in Vietnam are actively developing their own digital channels:

1. Vietcombank Pay

   • Digital transformation benchmark for state-owned banks
   • Provision of inter-bank rapid transfer services (NAPAS 247 system)
   • Topping 8 million users by 2023

2. MB Bank MBBank App

   • International awards for UI/UX design
   • "Super App" strategy to integrate multiple life services
   • QR Payment covers convenience store chains nationwide

Banking apps have more than 45 million combined monthly active users, data shows

GrabPay - a representative of cross-border ecology

As a regionalised platform, GrabPay features prominently in Vietnam:
✓ Deeply tied to local taxi and takeaway businesses
✓ Supports interoperability of wallets among the three countries of Singapore, Vietnam and Malaysia
✓ Currency exchange function for tourists

GrabPay Later is the latest service to be launched.

PayPal's International Transaction Role

Although indigenous use is limited, it is indispensable in specific areas:

• The first choice for cross-border e-commerce: 90% access for export e-commerce sellers
• Freelance collections: The main ways to withdraw cash from platforms such as Upwork
• Note: International credit card is required for full use.

NAPAS National Payment Network Infrastructure

This system, led by the Central Bank of Vietnam, underpins connectivity:
◇ Connects to all domestic banks and some e-wallets
◇ Standardised QR code (VietQR) to reduce acquiring costs
◇ Peak capacity of processing 6000+ transactions per second

Real-time cross-border clearing services will be launched in 2024.

Emerging Trends and Future Outlook

The Rise of BNPL Buy Now Pay Later

• Fundiin, Kredivo and other platforms active in funding
• Mainly used in the instalment purchase of electronic products

CBDC Digital Currency Pilot

• Central bank launches e-VND sandbox test
• Phase I focuses on bulk trade settlement

AI-driven innovative applications

◆ Voice recognition payment (Viettel Pay is now online)
◆ Biometric authentication penetration rate reaches 65% within the year

The above analysis shows that the Vietnamese payment market presentsElectronic Cash + Local Internationalisation + Scenario SegmentationThe three-dimensional competition pattern. Merchants are advised to choose more than 3 mainstream tools for integration according to their target customer segments, and to keep an eye on the policy changes of QR code payment. For consumers, a reasonable combination of MoMo (for daily consumption) + bank card (for large expenses) + ZaloPay (for social scenarios) will provide the best experience.

For rate comparisons or access guidelines for specific instruments, check out the White Paper on the Development of Non-Cash Payments published by the State Bank of Vietnam (SBV).