How high is e-payment penetration in Vietnam? A comprehensive analysis of the latest data for 2024

I. Overview of the e-payment market in Vietnam

In recent years, Vietnam's e-payment industry has shown explosive growth. According to the latest report released by the State Bank of Vietnam (SBV), the volume of e-payment transactions in Vietnam in 2023 grew by 49.2% compared to the previous year, with the value of the transactions reaching a staggering VND21.5 trillion (about US$9 billion). The figure marks Vietnam's accelerated move towards a cashless society.

In terms of user size, by the end of 2023, the number of active e-payment users in Vietnam has surpassed 36 million, accounting for nearly 60% of the country's population aged 15 years or older.Among them, the two major cities of Ho Chi Minh City and Hanoi have the highest penetration rates, reaching 78% and 72%, respectively.It is worth noting that the utilisation rate in rural areas has also jumped from under 2019's 10% to 35% in 2023, showing significant progress in financial inclusion.

Among the various types of electronic payment methods:

• Mobile wallets hold the largest market share (43%)
• QR code payment is the fastest growing (annual growth rate of 112%)
• The share of online payment by bank cards stabilised at 28%
• Bank transfer app usage rate is 22%

II. Key factors driving up penetration rates

(i) Strong government policy support

1. National cashless payment programme: The government has set a target of increasing the proportion of non-cash transactions to 50% by 2025
2. Improved regulatory framework: Revision of the Banking Law to provide legal protection for new payment institutions
3. Tax incentives: Reduction of 20% VAT for merchants using electronic payments

(ii) High penetration of smartphones

The statistics show:

• 72 million smartphone users nationwide (73% of total population)
• 4G Network Coverage 98% Administrative District
• Android devices account for 89% (favourable for local wallet development)

(iii) Innovation-driven local enterprises

Three local platforms excelled:

1. MoMo Wallet: over 30 million users (42% market share)
2. ZaloPay: 25 million users on the back of social software Zalo
3. ViettelPay: Telecoms background gives it an edge in rural areas

International brands such as GrabPay and AirPay have also captured about 15% market share through segmented scenarios.

III. Analysis of differences in use by age group and region

(i) Comparison of age-stratified data

IV. Age stratification analysis of e-payment users in Vietnam

(i) Comparison of usage characteristics by age group

Data source: Vietnam Digital Wallet Association Q1 Report 2024

younger groupHigh-frequency micro-credit characteristics:

• The average single transaction for Generation Z is only 180,000 VND (about $7)
• TikTok Shop and other social e-commerce companies drive 'pay-as-you-sweep' habits
• E-red packet feature sees traffic spike during traditional festivals 300%

Middle and old age groupsThere are obvious pain points:
- 32% declined due to concerns about network security
- 28% indicates that the operator interface is too complex
- 19% has experienced problems with CAPTCHA reception failures.

V. Status of urban-rural development disparities

(i) Infrastructure comparison

(ii) Differences in typical application scenarios

Urban hotspots:
- Convenience Store Flash Pay (GrabMart partner shop penetration of 91%)
- Automatic Taxi Deduction (Grab/Be adoption rate of 79%)
- Payment of condominium property fees (65 per cent VNPAY support in Ho Chi Minh City)

Rural Character:

1. Agricultural Acquisition Chain Finance

   • ViettelPay interfaces with 1,700 co-operatives
   • The "code to sell rice" model has covered 83 per cent of grain stations in the Mekong Delta

2. Digitalisation of government subsidies

   • Agricultural subsidies disbursed through electronic channels reach VND14 trillion in 2023
   • Savings in administrative costs over paper issuance 37%

VI. Industry penetration rate in-depth analysis

(i) Current status of applications in core areas

- retail trade:
100 per cent of supermarket chains have access to QR codes, but only 12 per cent of stalls in traditional food markets support them.

- educational organisation:
86 per cent of private schools have online payment, compared to only 29% for public schools.

- medical service:
Top 20 hospitals all cashless for consultations, but pharmacy system lags (31%)

(ii) Survey of impeding factors

Distribution of reasons for feedback from surveyed merchants.

pie title Percentage of reasons why merchants refuse electronic payments

"Excessive handling fees" :38%

"Reconciliation complexity":27%

"Equipment cost":19%

"Cash flow preference":16%

VII. Development trend forecast for the next three years

1.Direction of technological innovation
-Biometric payments will be the first to be piloted in airport duty-free shops
-The Central Bank Digital Currency (CBDC) is scheduled to be piloted in 2025
-Cross Border Payment Alliance expected to cover 6 ASEAN countries

2.Market growth expectations

As measured by the Boston Consulting Group model:

gantt        

title Vietnam e-payment market size forecast       

dateFormat YYYY        

Section transaction size      

Cash replacement: USD 2024.5 billion      

section user base      

Number of active accounts:202,652,000,000     

Conclusion: Despite challenges such as regional imbalance, Vietnam is moving towards a leading digital economy in Southeast Asia with an average annual growth rate of 40+% under the continued support of policy dividends. Overseas enterprises are advised to focus on the demand for scenario-based solutions in second- and third-tier cities.