Vietnam Mobile Payments Market Size

Vietnam Mobile Payments Market Analysis

The Vietnam mobile payments market for mobile payments is anticipated to expand at a CAGR of 15.64 percent over the projected period (2022 - 2027). The use of mobile payment systems like M_Service, Viettel Digital Services, ZaloPay, National Payment Corporation of Vietnam, and GrabPay by businesses and services nationwide is progressing quickly. This trend is anticipated to persist during the projection period due to rising internet usage and the rapid expansion of online shopping.

• Mobile phones, particularly smartphones, have elevated to essential significance in the context of the world economy's fast expansion. Additionally, most people in the nation now consider the internet a basic necessity for daily living. Due to this, the number of cellphones and internet users grew massively, driving the market for mobile payments in the country.
• Many industry participants, like ZaloPay and GrabPay, use reward systems to both retain existing mobile payment service users and attract new ones. In order to facilitate transactions through their applications, several service providers, for instance, provide scratch cards equipped with a reasonable amount. Such compensation schemes encourage customers to use mobile payment apps, boosting the mobile payment market.
• Additionally, the Party and the Government of Vietnam have recently given digitalization and the improvement of non-cash payment a great deal of attention and firm directives. Based on such directives, the State Bank of Vietnam (SBV) has continuously enhanced the legislative frameworks and regulatory procedures to support the banking industry's digital transformation and the adoption of cashless transactions. The payment infrastructure has received steadily increasing amounts of investment. Financial literacy and communication have both been emphasized. These have produced crucial pillars for the rapid development of digital payments and banking digitalization.
• Further, banking digitalization has made great progress, particularly in payment operations, offering real advantages to individuals and companies. These outcomes is indicated by the data published by the State Bank of Vietnam that nearly 70% of adults have payment accounts by 2020. The payment systems have operated smoothly and safely, meeting almost all economic payment demands with high average annual growth rate in mobile payment transactions. Many banking services are now entirely used in digital channels like opening new accounts and bank card issuance, deposits, money transfer, etc.
• The market for mobile payments is expected to expand over the forecast period due to the growing popularity of M-commerce in Vietnam, which involves doing online business utilizing wireless devices like smartphones.
• Furthermore, M-commerce enables consumers to transact anywhere there is wireless internet access. Additionally, businesses like ZaloPay have already debuted their mobile commerce offerings. Customers can now instantly make in-store purchases without the hassle of swiping a card thanks to the introduction of digital wallets like National Payment Corporation of Vietnam and M_Service.
• The market for mobile payments is growing but is being constrained by rising data breaches and security problems. Additionally, citing concerns about security and unlawful use of personal data, many customers are hesitant to accept the new technology.
• It should be emphasized that when the COVID-19 pandemic first appeared, the relevance of digital financial services increased. Consumers benefit financially from developments in financial technology, internet banking, and electronic payments. According to World Health Organization (WHO) research, customers should avoid using cash and contact-based payments since they might spread germs. Instead, they should opt for mobile payments. This payment at convenience made mobile payments an essential activity in the country.