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Vietnam’s push towards a cashless society, fueled by government policies promoting digital payments, has sparked a surge in online transactions and a race among tech companies to innovate, propelling the nation’s digital economy forward.
According to a survey conducted by a multi-channel sales and management platform, a significant portion of sellers across the country – 43.8% – now accept payments via bank transfer, with an additional 15.3% utilising VietQR codes, highlighting the widespread adoption of digital payment methods.
Banks have responded to this trend by rolling out various support programmes for sellers, including the creation of QR codes for swift money transfers and the provision of QR-code display boards in each store. Collaborations with software partners have further enhanced the functionality of digital payment systems, while stimulus initiatives have incentivised the transition towards cashless transactions.
The National Payment Corporation of Vietnam (NAPAS) reports a doubling in payments via VietQR codes, exceeding 100 million transactions per month in the third quarter of 2023. Platforms have also witnessed significant growth, with QR code payments increasing by 6% in volume and 30% in value quarter-to-quarter. Notably, QR code payments are now being utilised for a wide range of transactions, including utility bill payments, indicating the growing versatility and acceptance of this payment method.
The appeal of QR code payments extends across demographics, with both young and senior citizens embracing the convenience and competitive service fees offered by this mode of payment. The Country Manager of Vietnam and Laos country of a major credit card platform, highlights the rapid adaptation to digital payments, citing statistics showing a substantial increase in online card payments and mobile wallet transactions from 2022 to 2023.
This evolving landscape presents a lucrative opportunity for online payment service providers, who are now focusing on enhancing security through advanced technologies such as biometric authentication. Additionally, innovations like voice-activated payment processes, driven by AI technologies integrated into smartphones, are expected to further streamline transactions and improve user experience.
Vietnam’s strategic investment in cutting-edge technologies for cashless payments reflects its commitment to accelerating the development of the digital economy and meeting the evolving socio-economic demands of the nation. By embracing state-of-the-art payment solutions, Vietnam aims to position itself at the forefront of digital innovation, driving economic growth and fostering financial inclusion for all.
Vietnam’s e-commerce market soared to US$20.5 billion in 2023, a 25% surge from the previous year, underscoring its pivotal role in the nation’s digital economy. Driving this growth is the widespread adoption of electronic invoices, with a staggering 104.8 million generated, an astounding 47.6, fold increase from the initial stages – fueled by the General Department of Taxation’s initiative.
By year-end, 94.36% of targeted businesses embraced this system, yielding streamlined administrative processes, cost reductions, and heightened productivity. This digital shift signifies Vietnam’s accelerating pace towards digital transformation, with e-commerce emerging as a vital driver of economic development.
OpenGov Asia reported that Vietnamese banks are promoting cashless payments with innovative incentives, reflecting changing consumer behaviour. These efforts include prizes for transactions made through mobile apps, discounts for QR code payments, and lucky money features.
National Payment Corporation of Vietnam (NAPAS) bolstered technical and operational measures to ensure the stability and security of the interbank electronic payment system, aligning with the State Bank of Vietnam’s directive, to address the growing trend of non-cash transactions, especially during festive periods.
To accommodate this shift, NAPAS has enhanced its IT infrastructure and liquidity oversight while maintaining round-the-clock support for member organisations. Mr. Nguyen Quang Minh emphasized strategic solutions to fortify NAPAS’s role in providing payment infrastructure, ensuring stability, and meeting evolving payment needs.
