Vietnam Payment System

I. Overview of payments in Viet Nam

Vietnam's payments ecosystem has evolved rapidly in recent years, with digital payment methods becoming increasingly diverse as smartphone penetration increases and e-commerce grows.

Key Features:

• Cash still dominates:: Approximately 80% of transactions are still cash-based
• Rapid growth in mobile payments: 36 million mobile wallet users by 2022
• Government's push for cashlessness: Target of 50% of non-cash transactions by 2025

II. Mainstream payment methods

1. Traditional bank transfers

• online bank: Through the online platforms of banks such as Vietcombank, Techcombank, etc.
• ATM transfer: Approximately 19,000 ATMs nationwide.

2. E-wallets (the most popular digital payment method)

Main e-wallet:

• Momo(Market share approximately 50%)
• ZaloPay
• VNPAY

Comprehensive Analysis of Vietnam's Payment System (cont'd)

II. Mainstream payment modalities (continued)

3. QR code payments

• national unified standard: State Bank of Vietnam launches VietQR standard for cross-bank code-sweeping payments
• High penetration rate: About 85% merchants accept QR code payments
• Usage Scenarios: from small vendors to large shopping malls

4. Credit/debit cards

• Major Card Types::
  • Visa/Mastercard (international)
  • Napas (domestic bank card network in Viet Nam)
• permeability: Approximately 30% of adults have a bank card.

5. COD cash on delivery

• Preferred method of e-commerce: over 70% of e-commerce transactions
• Cash delivery characteristics: Courier collects cash and passes it on to the merchant

III. Cross-border payment solutions

For foreign tourists/businesses:

1. International Credit Cards

   • Visa/Mastercard is more versatile in high-end hotels and shopping malls
   • JCB/American Express less accepted

2. Prepaid travel cards

   • Pre-loaded foreign currency cards offered by banks such as Vietcombank

3. Remittance services
   |Service Provider|Features|
   |—|—|
   |Western Union|Wide network coverage, high handling fee|
   |MoneyGram|Good exchange rate, strict limit|
   |Bank Wire Transfers|Preferred for large amounts, takes 1-3 working days|

4. Emerging digital programmes

   • Revolut/N26 and other European digital banks' Visa cards can be used to withdraw cash at some ATMs

IV. Industry-specific solutions

1.Tourism Industry Featured Programme:
–Airport Exclusive:The percentage of merchants supporting Alipay+WeChat payment at Johor Bahru I Airport reaches 65%
–Hotel Booking:Agoda/Booking.com generally accepts PayPal (but incurs a 3%-5% currency conversion fee)

2.Key channels for cross-border e-commerce:

pie 

    Title Vietnam cross-border e-commerce payment method share 

    "Payoneer" :35 

    "Local bank transfers":25 

    "Western Union":15 

    "Virtual accounts": 25 

V. Recent trends in 2024

1.The Rise of Biometric Payments:VPBank and 6 other banks have piloted fingerprint/facial recognition POS machines

2.BuyNowPayLater outbreaks:: Platforms such as HomeCredit and Moca offer 0% interest instalment plans, with young users growing by 300%+.

3.Wave of Super App IntegrationGrab adds utility bill payment feature, Zalo accesses 18 government service payments