Vietnam Payment Industry Competitive Landscape Report

Below is a detailed analysis of the competitive landscape of the payments industry in Vietnam, covering the current state of the market, key players, regulatory environment and future trends:

Vietnam Payments Industry Competitive Landscape Report (2023)

I. Market overview

1. Market size and growth

   • Vietnam is one of the fastest growing digital payments markets in Southeast Asia, with e-payments by 2023 projected to reach$50 billion, with an annual growth rate of over 25% (according to World Bank).
   • Cash still dominates (~70% transactions), but cashless payment penetration is increasing rapidly (e-commerce, Gen Z driven).

2. Core drivers

   • Policy support: Government's "cashless society" target (50% of non-cash transactions by 2025).
   • young population: 70% population under 35 years old and 75% smartphone penetration.
   • flood of foreign capital: Grab, Ant Group, and others lay out through joint ventures.

II. Competitive landscape and key players

Vietnam's payment market has a dual structure of "local giants + foreign alliances":

(1) Leading local enterprises

• MoMo (Mobile Money)
  • Largest e-wallet with over 30 million users (30% of the population), covering bill payment, money transfer and retail. Strength lies in offline merchant network (200,000+ co-operation points).
• VNPAY (Vietnam Payment Solutions)
  • QR code payment leader with 40 banks; parent company VNLife gets investment from SoftBank Vision Fund.

(2) Banking platforms

• ZaloPay (Vingroup Ecology): The social app Zalo channelises and focuses on younger users.
• MBBank Pay, ViettelPay (Telecom + Bank Linkage): Leveraging Viettel's 60 million mobile subscriber base.

(3) Foreign competitors

• China Background:
  • WeChat Pay/Alipay (cuts through the travel scene, but localisation is limited by exchange controls).
• South East Asia Platform:
  • GrabPay (integrating Grab's travel/takeaway ecosystem), ShopeePay (tying in e-commerce traffic).

surname San Key Track Segmentation

IV. Regulation and challenges

1. Policy developments:
   Central Bank (SBV) requires all non-bank payment institutions to be licensed; foreign shareholding capped at 49% (exempted in some cases).
2. sore point:
   Low acceptance in rural areas｜Insufficient cross-platform interoperability｜High data localisation compliance costs.

5future trends

1. Super App integration: e.g. MoMo added lending/insurance function to benchmark Grab.
2.Cross-border co-operation:: Pilot real-time remittance channel between China and Vietnam (Lazada already supports Alipay+).
3.Technology upgrades:: Biometrics (e.g. VNPAY pushing sonic payments), blockchain trials (PetroVietnam trialling cryptocurrency settlement).

Further additions can be made if in-depth analyses of specific areas are required (e.g., a particular company's strategy or segmentation track data).

Report on the Competitive Landscape of the Payments Industry in Vietnam (continued)

VI. In-depth analysis of market segments

(1) E-wallets: MoMo vs. ZaloPay vs. GrabPay

• Key developments:: MoMo is being transformed into a "super finance app", adding insurance and microfinance in 2023; ZaloPay is increasing offline penetration through the Vingroup retail system (VinMart, VinFast).

(2) Buy Now Pay Later (BNPL): Explosive Growth but Risks Lurking

• Major players: Fundiin, Kredivo, HomePay (local startup), Atome (Singaporean funders).
• market size: ~$500M GMV in 2023, expected to reach $1.5B in 2025 (70% CAGR).
• regulatory risk:: SBV proposes to include BNPL in the credit regulatory framework, potentially raising the barriers to entry.

VII. Regional competitive differences

1. Ho Chi Minh City/Hanoi:
   • Highly digitised with e-wallet penetration of over 60%, dominated by GrabPay/MoMo.
   • International brands (Apple Pay, Samsung Pay) try to enter but have less than 5% share.
2. Second- and third-tier cities and rural areas:
   • Cash still accounts for 801 TP3T transactions, with bank correspondent points (ViettelPost, Agribank) being the key channel.
   • MoMa promotes its cash recharge service through a network of agents ("MoMo Girls").

VIII Opportunities and obstacles for foreign-owned enterprises

1. Success Stories:
   • Ant GroupIt took a stake in VNLife, the parent company of VNPAY, and exported its risk control technology; Alipay occupied the high-end hotel/duty-free shop scene through cross-border travel payment.
2. Lessons from failure:
   • PayPal exits personal remittance market due to lack of localisation; WeChat Pay fails to expand C-suite business due to foreign exchange control restrictions.

9Key projections for the next 3 years

1️⃣ Accelerated mergers and acquisitions: MoMO may acquire small and medium-sized payment platforms to consolidate share; foreign investors may bypass shareholding restrictions through the joint venture model. (Example: South Korea's Kakao Pay is in talks to invest in ZaloPay.)
2️⃣ tighten supervision: SBV may require e-wallet reserves 100% to be held in custody at the central bank to reduce the risk of a run.
3️⃣ The Rise of New Tracks:
Virtual card issuance (e.g. VPBank's YOLO card) | Supply Chain Finance (for small and medium-sized merchants) | Game Payment (Topup card recharging).

If specific data validation or business case studies are required they can be further developed!