More Vietnamese people go cashless: Visa study

Vietnamese consumers are carrying less cash than they did a year ago. (Photo: tuoitre.vn)

Visa, a global leader in digital payments, has provided its insights into Vietnam’s payment landscape with its latest Consumer Payment Attitudes study that highlights the surge in cashless transactions among Vietnamese consumers.

According to the study, 56% of Vietnamese respondents surveyed are now carrying less physical cash than they did a year ago, signaling a progressive mindset towards embracing new financial technologies. Particularly, young consumers are playing a pioneering role in the shift towards cashless payment, with 89% of the surveyed having successfully adopted cashless methods.

Visa also delves into the prevailing trends that shape up the non-cash economy in Vietnam, including the ascendance of mobile wallets. It said Vietnam is among the top Southeast Asian markets with rapid adoption of mobile wallets as the preferred method for making payments, contributing to accelerating the growth of digital finance. The country is poised to emerge as one of the regional leaders in mobile finance as four in every five Vietnamese consumers utilise mobile wallets.

Meanwhile, real-time payments (RTPs) have gained significant momentum in Vietnam, an illustration for the nation’s embrace of cutting-edge financial technologies. The RTPs offer unparalleled convenience and efficiency, driving further digitisation of the economy. In Vietnam, RTPs are growing in popularity, with at least two in five consumers having used them. Application of the RTPs has been persified, comprising cross-border transactions, peer-to-peer transfers, merchant/retailer payments, and bill payments.

Furthermore, buy now pay later (BNPL) is a popular service availed by Vietnamese consumers, offering flexible payment options and driving consumer engagement. Visa's strategic partnerships with leading Vietnamese retailers for Visa Instalment Solutions demonstrate the transformative impact of such solutions in fostering financial inclusion and driving business growth.

Credit cards, although less utilised for wallet top-ups and funding, are the preferred choice for BNPL plans in Vietnam. Easy to use apps, free vouchers, rewards points, and the ease of tracking payments were the key drivers for the uptake of BNPL offers.

Vietnam's cashless payment revolution presents unprecedented opportunities for economic growth and innovation, unlocking opportunities for consumers and businesses alike in the continued shift to a cashless society.

Visa Country Manager for Vietnam and Laos Dang Tuyet Dung said Visa remains committed to driving innovation and enhancing digital payment experiences for consumers.

The findings from the Visa study affirm the growing trend towards contactless transactions, exemplified by a significant 53% increase in contactless transactions made on Visa cards, a 19% surge in purchases made on Visa cards, along with a substantial rise in the total value of cross-border transactions, she added.

Statistics from the State Bank of Vietnam (SBV) revealed that non-cash payment and digital banking activities have shown positive results. As of the end of 2023, the number of inpidual payment accounts reached more than 182.88 million, up 21.8% year-on-year.

In January 2024, non-cash transaction surged 63.3% in volume and 41.45% in value as compared to the same time last year. Meanwhile, transactions through internet rose 57.85% in volume and 32.43% in value, and through QR codes shot up 892.95% in volume and over 1,062% in value.

The SBV has encouraged credit institutions to carry out digitalisation, promote cooperation with different sectors to form and expand the digital ecosystem, while completing legal framework, mechanisms and policies on non-cash payment./.