E-payments vs traditional payments in Vietnam: what are the differences?

E-payment and traditional payment methods in Vietnam differ significantly in several aspects, mainly in terms of technology base, usage scenarios, convenience, security and policy support. The following is a specific comparison:

1. Technical basis

  • electronic payment: Relies on the Internet, mobile networks and digital technologies (e.g. QR codes, NFC, e-wallet apps, etc.) and requires a bank account/e-wallet to complete the transaction.
  • traditional payment: Transactions are done mainly in cash or through a physical medium such as a physical card (bank card) or cheque.

2. Scenarios of use

  • electronic payment::
    • Online: e-commerce shopping (Shopee, Lazada), online service payment (utilities, phone bill recharge).
    • Offline: code-sweeping payment (supermarkets, restaurants), contactless POS.
  • traditional payment::
    • Cash dominates micro-transactions (food markets, street vendors) or rural areas.
    • Bank cards are mostly used for large purchases (shopping mall swipes).

3.

4. Accessibility and efficiency

  • electronic payment::

    • prompt settlement: Transfers and receipts are done in real time, without waiting.
    • No cash dependency: Avoid carrying large amounts of cash or the hassle of making change.
    • Convenient cross-border payments: Some e-wallets (e.g. MoMo, ZaloPay) support international remittances (e.g. Vietnam-China).

  • traditional payment::

    • Physics-dependent operation: Access to cash requires a visit to a bank/ATM, and cheques are handled manually.
    • High time cost: Interbank transfers or large transactions may be delayed by 1-3 business days.

5. Security comparisons
✅ Safer ❌ Higher risks
-Biometric verification (fingerprint/face)
-Dynamic encryption
-Transaction records are traceable		 -Counterfeit currency risk
-Bank card theft
-Difficult to recover when lost

6. Policies and popularity

📈 Government push factors

① 2025 goal -Demonetisation covers 80% population
② Regulatory enhancement-Anti-money laundering regulations improved (P2P limits)

🏙️ Significant urban-rural differences

Hanoi/Ho Chi Minh City: QR code coverage over 70%
Remote areas: still cash-based (only supported by 30% merchants)

⚖️ summarises the selection recommendations.

✔️ young people/online shoppers→preferred e-payment (VNPAY, GrabPay)
✔️ middle aged/rural users → retain cash + basic bank card

Is there a specific area that needs to be analysed in depth?