Local Payment Gateway Recommendations and Comparisons in Vietnam: The Most Comprehensive Guide to 2023

INTRODUCTION: Why do you need to know about local payment gateways in Vietnam?

In today's booming digital economy, Vietnam has become one of the most promising e-commerce markets in Southeast Asia. As smartphone penetration continues to increase and internet infrastructure continues to improve, more and more consumers are opting for online shopping and digital services. However, to successfully enter this fast-growing market, businesses must understand and adapt to local payment habits.

Credit card penetration in Vietnam is relatively low (~5-10%), while cash transactions still dominate. This unique payment environment has given rise to a range of innovative localised payment solutions. This article will provide an in-depth analysis of the leading local payment gateways in Vietnam to help you choose the most suitable partner for your business.

I. Overview of mainstream local payment gateways in Vietnam

1. MoMo e-wallet

As the leading mobile wallet platform in Vietnam, MoMo has over 30 million users and an extensive merchant network. It supports multiple top-up methods:

• bank transfer
• ATM deposit
• Convenience Store Cash Recharge
• QR code payment

cutting edge::
- Large and active user base
- O2O (online to offline) scenarios cover a full range of topics
- Easy and fast API integration

2. ZaloPay electronic wallet

ZaloPay, developed by VNG Group, is rapidly expanding on the user base of national social app Zalo.

Core features include::
✓ P2P transfer services are convenient and efficient
✓ Smooth QR code scanning payment experience
✓ Lightning Top-Up feature responds quickly

It is particularly suitable for businesses whose target customers are young to consider this option.

3. Viettel Pay telecom operator solution

Viettel, a military-backed telecoms giant, has a unique advantage in launching this product:

• Extremely high coverage -Reaching remote areas with the help of the parent company's network of base stations
• Can be used without a bank account -Lowering the threshold of use to broaden the audience
• Integrated Bill Payment System for Phone Bill Improvement

This is especially true for products targeting rural markets or low-income populations.

[Table 1] Side-by-Side Comparison of Technical Indicators of the Three Major E-Wallets

parameters	MoMo	ZaloPay	Viettel Pay
Number of registered users	>30M	~20M	~15M
commission rate	0.8%-1.5%	0.5%-1.2%	–
API Response Time	<500ms	>700ms	>800ms

Data as of Q2 2023

II. In-depth analysis of the direct bank connection programme

In addition to electronic wallets, direct access to local banking systems is an important option.

- Napas National Settlement System

Equivalent to China's UnionPay, it connects all major financial institutions in the country.
→Support card types of 45 member banks →Processing capacity of over 200 TPS →Cross-border business is under expansion

The key point is that the clearing cycle is usually T+1 business days.

- VNPT Pay Government Background Project

Characterised by.
◇Monopoly in public hospital/school payment scenarios ◇High penetration rate of civil service groups ◇Strict security standards

However, the approval process is relatively complex and time-consuming (about 4 weeks).

III. How to choose the best programme according to the type of business?

Different industries should focus on different dimensions.

A)Cross-border e-commerce suggested portfolio strategy:
Prefer Napas + at least one major e-wallet (MoMo preferred) to cover 85%+ potential customers.

B)SaaS Subscription-based Services Points to Note:
Special attention should be paid to the success rate of regular debit, ZaloPay has the best performance of 92% in this test.

C)Gaming and Entertainment Industry Tricks:
Viettel Pay's chargeback feature can effectively solve the problem of underage players' payment.

D)Warning on high price-per-unit areas:
It is recommended that an OTP verification step be mandatory to prevent the risk of fraud when a single transaction exceeds 20 million VND (approximately $850).

IV. Practical recommendations for technology docking

Whichever solution is chosen, attention should be paid to the following implementation details.

①Sandbox environment fully tested for at least 72 hours
②Automatic retry mechanism for failed transactions is indispensable (3 attempts at recommended intervals)
③Reconciliation file timing acquisition programme needs to run stably (preferably at 4:00 a.m. in UTC+7 time zone).

Paying special attention to the special case plan for handling "Pending Transaction", which may last up to 48 hours, specific to Viet Nam.

V. Rate structure and cost optimisation techniques

Three levers for negotiating more favourable terms.

♠Monthly Streaming Commitment Step Rebate Policy (e.g. >50K USD partial reduction of 0.15%)
♣Annual Contract Prepaid Discount Mode (Commonly 60% off)
♥ Cross-selling other services at packaged prices

VI. List of compliance requirements

Regulatory filings that must be completed include, but are not limited to.

☑️ National Bank Exchange Control Form NKH01 Version 2023
☑️ Notarised copy of information confidentiality agreement (Vietnamese-English bilingual)
☑️PCI DSS Level 4 or higher certified copies of certificates

VII. Future Trends Ahead

Three developments to watch.

➤ Pilot application of blockchain technology in cross-border settlement (Bank of Hope has initiated the experiment )
➤ Regulatory breakthrough in biometric payment (currently limited to domestic enterprises applying for licences)
➤ Wave of aggregation of built-in financial services in super-apps (Grab's integration with Moca is a high value case study)

Conclusion: guidelines for action

Priority recommendations for immediate implementation:

[Urgent] Register for NAPAS Merchant Pre-qualified Account (free but long lead time)
[IMPORTANT] Contact at least two candidate vendors for the latest interface documentation.
[Regular] Arrange for legal team to review limitation of liability clauses in standard contracts

Through the systematic analysis in this article, I believe you have already grasped the framework methodology for evaluating various options. When making practical decisions, please be sure to customise them to the specific needs of your own business, and if necessary, consult professional consultants for targeted advice.

Appendix Resources.
- Vietnam E-commerce White Paper 2023 download link
- SBV Latest Regulatory Policy Interpretation Video Course
- API Performance Benchmarking Toolkit GitHub repository

Vietnam Payment Gateway Market In-Depth Analysis: Emerging Solutions and Industry Trends

IV. The Rise of Emerging Payment Solutions

1. ShopeePay's e-commerce ecosystem advantages

Relying on the huge traffic of Shopee platform, ShopeePay shows unique competitiveness:

• Seamless shopping experience: Increased payment conversion rates within the platform 40%
• marketing linkage effect: Can be deeply tied to platform promotions
• Cross-border support capacity: Wallet interoperability between Singapore, Malaysia and Thailand is now available.

The latest data shows its Q3 growth rate of 75%, making it the fastest growing e-wallet.

2. GrabPay's super-app strategy

As the financial arm of travel giant Grab, features include:
→Ride Points are directly credited against purchases
→ Driver networks become offline service points
→ Exclusive Offers for Catering Takeaway Scene

It is particularly suitable for adoption by O2O service businesses.

[Table 2] Comparison of the performance of emerging and traditional payment methods

Assessment dimensions	Traditional bank transfers	MoMo/ZaloPay	ShopeePay
Average processing speed	3-5 working days	real time delivery (of funds)	Immediate completion
Percentage of young users	<35%	>68%	>82%
Merchant Access Costs	your (honorific)	moderate	lower (one's head)

Source: 2023 Vietnam Digital Payments Annual Report

V. Industry Verticalisation Solutions

- B2B Bulk Trading Dedicated Channel

For the specific needs of business customers:
◇Support for single transaction over 50 billion VND
◇Provides instalment options (up to 12 instalments)
◇VAT invoice auto-matching function

Representative vendor: VPBank's Corporate Payment Hub.

- Tailor-made programmes for the education sector

Typical features include:
✓ Tuition instalments (6/9/12 months available)
✓ Parental Payment Functionality Setting Flexible Privilege Controls
✓ Deep integration with school management system APIs

Leading Provider: Edupay has reached a market share of 57%.

VI. Technical architecture key considerations

The selection of technology partners should be validated:

①System Availability SLA Commitment (recommended ≥99.95%)
②Disaster recovery RTO indicators (excellent cases can be achieved within 15 minutes)
③ Compliance certification completeness (must include PCI DSS and local GDPR)

Pay special attention to the new regulations of the Central Bank of Vietnam that require all transaction logs to be kept in the territory for at least 10 years.

VII. Consumer Behaviour Insights and Optimisation Strategies

Three important phenomena have been identified based on the latest research:

▲ "Scan and Go" function increases customer unit price by 22% (Convenience Store Data)
▲Payment by instalment option increases conversion rate to 3 times the original (electronics category)
▲Retention rate of cash recharge users is instead higher than that of card-bound users (63% vs 51%)

Corresponding operational recommendations:
-Highlight the QR code payment option on the checkout page
-Default display of staging plan calculator for high unit price items
-Adding convenience store top-up cashback promotions

VIII. Advanced Guide to Risk Management

Five defence mechanisms that need to be put in place:

1) Real-time risk control engine rule base (recommended initial configuration of not less than 200 rules)
2) Device fingerprint identification system to prevent multi-account cheating
3) Geo-location based suspicious transaction interception strategies (e.g. sudden cross-border operations)
4) Key points in the design of manual review workflow for large transactions.
-Threshold dynamic adjustment algorithm (reference historical mean ± 3σ)
-List of mandatory trigger conditions for secondary validation

5) Anti-money laundering monitoring report system construction specification

IX. Exploration of innovative value-added services

Frontier Case Reference:

"Intelligent Collections Forecasting: Combine historical data to allocate funds in advance (error <8%)
"Blockchain Electronic Contract Deposit: Increased Efficiency of Proof in Dispute Resolution90%
"AR Virtual Store Payments:Metaverse scenarios have completed technical validation

X. Practical checklist

23 validation tests that must be completed before going live.

[Core technology]
□Vietnamese error message localisation test □Special processing logic for Lunar holidays □SMS OTP arrival rate test >98%

[Compliance process]
□ User agreement government filing receipt □ KYC process video recording quality check □ Alternate account minimum balance confirmation

[Operational readiness]
□ Acceptance of customer service training knowledge base □ Verification of the completeness of the establishment of the emergency contact tree □ Status of the update of the tutorial on counterfeit banknote recognition

xi. special reminders from experts

Three Legal Details Easily Overlooked.

⚠️ refund operations must be responded to within 48 hours of receipt of the request (legal limit)
⚠️ requires the generation of a tax-inclusive e-voucher for each successful transaction (T-VAT format standard)
⚠️ foreign investors need to apply for an additional PSP licence to conduct aggregation business

XII. Resource matching channels

Three official information portals are recommended.

✅ National Bank FinTech Registry website (most up-to-date)
✅ E-Commerce Association Annual Merchant Manual Download Centre
✅ General Administration of Customs Cross-Border Trade Facilitation Services Platform

Final decision-making framework.
The optimal solution is selected by weighting the scores in four dimensions: the
1. Market Coverage (30%) 2. Technical Stability (25%)
3. rate competitiveness (20%) 4. regulatory adaptability (25%)

It is recommended that a decision matrix table be produced for quantitative comparison and that third party consultants be brought in to do due diligence if necessary.

Ongoing optimisation recommendations.
Even when access is completed, partner performance should be reassessed on a quarterly basis, focusing on trends in the following indicators.
■Complaint resolution timeframe ■New technology adaptation progress ■Unusual fluctuation response speed