Bank cards or e-wallets? The most trusted payment method in Vietnam

In Vietnam, the popularity and trust in e-wallets has risen rapidly in recent years, but bank cards (especially debit cards) remain the basic payment tool for many. Here is the key analysis:

1. The dominance of electronic wallets

  • user scale: According to the State Bank of Vietnam, Vietnam has more than 36 million e-wallet users in 2023 (more than 1/3 of the population), far exceeding the active use of bank cards.
  • Advantage of local giants: Local platforms such as MoMo, ZaloPay, VNPAY, and others have earned trust by..:
    • Life Scene Coverage: Integrate high-frequency needs such as utility bills, phone top-ups, cabs (Grab) and takeaways;
    • Zero Handling Fee Policy: Lower cross-border/transfer fees than bank cards;
    • Social integrationFor example, ZaloPay relies on Zalo, the largest social software in Vietnam, which makes transferring money between acquaintances more convenient.
  • The explosion of QR code payments: Code-sweeping payments are widely accepted by small traders and in rural areas without the need for a POS.

2. Irreplaceability of bank cards

  • Payroll and Block Trades::
    • Corporate payroll continues to be disbursed mainly through bank accounts;
    • High-value transactions such as house and car purchases rely on bank cards or bank transfers.
  • International payment compatibility::
    Credit cards (e.g. Visa/Mastercard) are still in demand for cross-border online shopping or travelling.

3. Impact of cultural and social factors

  • cash inertia: Cash is still preferred by middle-aged and older people and in rural areas, but young people have moved rapidly to e-wallets;
  • policy impetus: The Vietnamese government plans to increase the proportion of cashless payments to 50% by 2025, further favouring electronic payments.

Conclusion: 'Scene differentiation' is evident

4. Fragmentation and complementarity of payment scenarios

Vietnam's payment ecosystem is clearly 'scene-divided', with bank cards and e-wallets not competing with each other, but rather covering different needs:

(1) E-wallets dominate high-frequency, small-value scenarios

  • Consumption: MoMo/VNPAY QR codes are commonly supported in food markets, street cafes and food stalls;
  • social finance: AA dinner with friends, red packets (Lì xì điện tử) via ZaloPay in seconds;
  • public service: Gradual access to e-wallets for payment of traffic fines, hospital registration and other government functions.

(2) Bank Card Binding + Credit Card Penetration in Middle to High-end Scene

  • Online large-value payments: E-commerce platforms (Shopee/Lazada) are more secure in tying cards and support instalments;
  • international transaction: Credit cards are still the preferred choice when paying fees for overseas study or booking Agoda hotels;
  • Trend towards "hybrid payments": Many users tie their bank cards to e-wallet top-ups (e.g. MoMo), balancing convenience with money management.

5. Challenges and future trends

(1) Addressing Trust Pain Points

  • safety concerns: Some people are still concerned about electronic fraud, but the spread of biometric (fingerprint/face) technology is improving;
  • Deepening of banking co-operationVNPAY has launched "Instant Money Transfer" with a number of banks to enhance cross-platform reliability.

(2) Policy and Technology Driven