Contactless payment could be next big thing in Vietnam: experts

Contactless payment is becoming more popular in Vietnam thanks to young population and the technology development

To make contactless payment, a card or smartphone is simply waved in the vicinity of a terminal equipped with the technology.

A spokesperson for Visa Vietnam told Vietnam News that consumers around the world see value in the speed and convenience of tapping to pay.

“More cities around the world are enabling contactless technology to deliver an improved experience for riders, helping save valuable time by eliminating the need to buy or reload a fare card.”

In a survey by Visa, nearly half of UK commuters cited the introduction of contactless payments as the single most significant improvement to their overall public transport experience. Meanwhile, Poland is on its way to being the first country in the world to have 100 percent of its checkout terminals with tap to pay capability, currently at 99.9 percent.

In the US, 78 out the top 100 Visa merchants already have the infrastructure for contactless payment. The company expects to issue more than 100 million more contactless cards in the US this year.

Contactless payment is also very popular in markets like Canada, Singapore, Malaysia, Russia, parts of Latin America, and the Caribbean, Visa said.

In Vietnam too, it is becoming more and more popular.

At a shop in Vivo City mall in HCM City’s District 7, an employee said that contactless payment is becoming increasingly common at her store.

“You see, other digital payment like credit cards need three or four steps. But contactless payment [involves] just one tap and no signing.”

The popularity of contactless payment has surged in the last two years or so with the entry of players like Vietcombank, Sacombank and Techcombank.

Another survey by Visa in Vietnam last year found 85 percent of consumers saying they know about contactless payment and 32 percent using it.

Seeing the potential, many retailers and companies have embraced the new technology, and it is now widely used in cafes, restaurants, supermarkets, convenience stores and amusement places like Starbucks, Saigon Co-op, Lotte Mart, eMart, Aeon, Citimart, CGV and BHD cinemas, The Coffee House, and KFC.

Visa said this is a positive signal for its development and predicted a boom since it is popular with young people.

“Vietnamese are aware of the safety and convenience of contactless payment. Furthermore, contactless payment helps businesses save time and improve efficiency,” said Dang Tuyet Dung, country manager of Visa Vietnam and Laos.

Experts said developing this payment method requires close cooperation between the Government, banks and companies.