Market Trends of Vietnam Mobile Payments Industry
This section covers the major market trends shaping the Vietnam Mobile Payments Market according to our research experts:
Increased Mobile Penetration Drives the Market in the Country
- Increased utilization of smartphones can switch to m-payments, which make payments easier due to their convenience and quick process. As per GSMA, between 2021 and 2025, 15 million new mobile internet users in Vietnam will come from Vietnam. By 2025, smartphones will account for more than 85% of connections in Vietnam, up from 62 % in 2020.
- Moreover, 73.5 % of Vietnam currently uses smartphones. The proposed National Digital Infrastructure Strategy to 2025 states that Vietnam wants to raise the rate to 85% by the end of 2022. By the end of 2021, Vietnam would have 91.3 million smartphone customers, according to the Department of Telecommunications, a division of the Ministry of Information and Communications (MIC). There were two million more smartphone customers by March 2022, increasing the total to 93.5 million.
- Mobile wallets are expected to be a push toward cashless payment in Vietnam, a country with a higher existence of unbanking population, and most people pay for goods valued at less than VND100,000 VND (USD 4.41) by cash. Through increased penetration of smartphones, people get acquainted with mobile payments and experience the convenience of using them.
- Further, the increasing mobile penetration has driven the growth of m-commerce in the country. Vietnam's ability to foster e-commerce is demonstrated by the success of various Vietnamese-origin e-commerce platforms, such as Tiki, Sendo, and Thegioididong. These platforms have grown into big e-commerce powerhouses thanks to investments from Japan, Germany, the United States, South Korea, China, and Singapore. The growth of online shopping has further facilitated the growth of mobile wallets in the country.
Understand The Key Trends Shaping This Market
Download Sample
Retail to Experience Significant Growth
- In December 2021, A banh mi (Vietnamese sandwich) store on Dang Van Ngu Street in Hanoi drew a lot of young consumers not just because the price of the sandwich was under VND 20,000 (USD 0.8) but also because the young customers were delighted with the shop's new payment mechanism. Such experiences indicate the potential for growth of the mobile payments market in the country.
- Moreover, customers may use the QR code attached directly to the glass cabinet housing the sandwich to purchase without using cash by swiping it. In order to make payments quicker and easier, the business accepts more than ten types of e-wallets.
- Since the pandemic began, there has been a noticeable rise in the usage of e-wallets, payments made through cellphones and QR codes, and a strong demand for instant credit solutions like buy-now-pay-later, particularly among the underbanked and unbanked populations.
- The COVID-19 epidemic has significantly increased the market for online purchases, with non-cash payments making up 70% of all retail transactions in Vietnam last year. A study of 15,000 shops found that 72.8% of all transactions in 2021 involved cashless payments, an increase of 9% over the previous year. With 36.5% of all transactions at retail stores, restaurants, and cafes made using bank accounts, it has overtaken cash (29.8%), e-wallets (14.8%), QR codes (9.9%), bank cards (8.5%), and payment gateways (0.5% ) as the most common means of payment.
