Vietnam Market Insights Vietnam Market Insights

Digital Payments Vietnam

Digital Payments Vietnam

Executive Summary

Vietnam’s payment landscape has undergone fundamental transformation, with digital payments growing from 15% of transactions in 2018 to over 60% in 2024. The market is characterized by mobile-first adoption, QR code ubiquity, and the rapid decline of cash dependency in urban areas.

Market Size and Growth

Transaction Volume

  • Total digital payment value (2024): $400-450 billion annually
  • Digital share of transactions: 60-65% (up from 15% in 2018)
  • Mobile payment growth: 35-40% CAGR (2020-2024)
  • QR code transactions: 200+ million monthly

Infrastructure Metrics

  • NAPAS real-time transactions: 2+ million daily
  • VietQR adoption: 40+ banks, 15+ wallets
  • POS terminals: 250,000+ (growing rapidly)
  • Mobile payment users: 60+ million

Payment Method Breakdown

By Transaction Volume

  1. Bank transfers (digital): 35-40%
  2. E-wallets: 25-30%
  3. Cards (debit/credit): 15-20%
  4. Cash: 35-40% (declining)
  5. Other: 3-5%

By Use Case

  • E-commerce: 80-85% digital
  • In-store retail: 40-50% digital
  • Bills/Utilities: 70-75% digital
  • Peer-to-peer: 60-65% digital
  • Transportation: 50-60% digital

Payment Infrastructure

National Payment Switch (NAPAS)

  • Real-time interbank transfers: 24/7 availability
  • Processing time: <3 seconds
  • Zero-fee policy: Consumer transfers
  • Participation: 60+ banks, financial institutions
  • Monthly volume: 60+ million transactions

VietQR Standard

  • Launched: 2021 (national standard)
  • Compatibility: EMVCo QR specifications
  • Static QR: For fixed amounts
  • Dynamic QR: For variable amounts
  • Print/display: Accepted everywhere

QR Code Ecosystem

  • Bank QR: Interoperable via NAPAS
  • Wallet QR: Proprietary (converting to VietQR)
  • Merchant adoption: 500,000+ points
  • Consumer usage: 45+ million regular users

Payment Methods Deep Dive

Bank Digital Channels

Mobile Banking Apps

  • Active users: 40+ million
  • Features: Transfers, bills, investments
  • Leaders: Vietcombank, Techcombank, BIDV
  • Biometric auth: Fingerprint, face recognition
  • Daily limits: 100-500 million VND typical

Internet Banking

  • Users: 25+ million
  • Usage: Declining (mobile preferred)
  • Corporate: Still dominant for B2B
  • Security: Token, SMS OTP

Bank Cards

  • Debit cards: 80+ million issued
  • Credit cards: 6-8 million
  • Usage: Often for ATM withdrawal
  • Contactless: Growing adoption
  • International: Visa, Mastercard dominant

E-wallets

MoMo

  • Users: 30+ million
  • Transactions: 400+ million monthly
  • Acceptance: 250,000+ merchants
  • Features: Payments, transfers, investments
  • Agents: 100,000+ cash-in/out points

ZaloPay

  • Users: 15+ million
  • Integration: Zalo messaging (80M users)
  • Social features: Red envelopes, group payments
  • Mini-apps: Ecosystem integration

ViettelPay

  • Users: 12+ million
  • Strength: Rural coverage
  • Telecom integration: Viettel network
  • Services: Utility, content, micro-loans

ShopeePay

  • Users: 10+ million
  • E-commerce focus: Shopee ecosystem
  • Promotions: Cashback, discounts
  • Cross-border: International payments

VNPay

  • QR infrastructure: B2B2C model
  • Bank partnerships: 40+ banks
  • Government: Public service payments
  • QR standard: Driving VietQR adoption

Buy Now Pay Later (BNPL)

  • Market size: $500-600 million (2024)
  • Providers: Home Credit, Kredivo, Fundiin
  • Typical terms: 3-6 installments
  • Interest: Often merchant-funded (0%)
  • Target: Young consumers, mid-range purchases

Consumer Adoption Patterns

By Demographics

  • Gen Z (18-24): 80%+ regular digital payment users
  • Millennials (25-40): 70%+ regular users
  • Gen X (41-56): 50%+ regular users
  • 55+ years: 30%+ (fastest growing segment)

By Location

  • Urban: 70-75% digital payment adoption
  • Rural: 40-45% adoption (growing rapidly)
  • Tier 2-3 cities: 55-60% adoption

By Income

  • High income: 85-90% digital
  • Middle income: 65-70% digital
  • Lower income: 40-45% digital

Merchant Acceptance

By Channel

  • E-commerce: 95%+ accept digital
  • Modern retail: 80-85% accept digital
  • Traditional retail: 30-40% accept digital
  • Street vendors: 15-20% (QR codes)

By Size

  • Large enterprises: 95%+ acceptance
  • SMEs: 60-70% acceptance
  • Micro businesses: 30-40% acceptance

Integration Methods

  • POS terminals: Integrated solutions
  • QR codes: Static/dynamic displays
  • App-to-app: Direct wallet integration
  • E-commerce gateways: Payment aggregators

Use Case Analysis

E-commerce Payments

  • E-wallets: 35-40%
  • Cards: 20-25%
  • Bank transfer: 15-20%
  • COD: 20-30% (declining)
  • BNPL: 3-5% (growing)

In-store Retail

  • Cash: Still 50-60% overall
  • QR code: 25-30% (fastest growing)
  • Card: 15-20%
  • Wallet NFC: Limited

Bills and Utilities

  • Digital share: 70-75%
  • Methods: Bank apps, e-wallets
  • Automation: Recurring payment setup
  • Late fees: Reduced with digital

Peer-to-Peer

  • Bank transfer: 40-45%
  • E-wallet: 40-45%
  • Cash: 10-15% (declining)
  • Social contexts: Splitting bills, gifts

Transportation

  • Ride-hailing: 85-90% in-app payment
  • Public transport: Cash cards, mobile (limited)
  • Tolls: Electronic collection (automated)
  • Parking: QR code payments growing

Regulatory Framework

State Bank of Vietnam (SBV)

  • Primary regulator: Payment system oversight
  • Policy direction: Cashless society by 2025
  • National Payment Development Scheme: 2021-2025

Key Regulations

  • Circular 19/2016/TT-NHNN: Payment intermediary services
  • Circular 39/2016/TT-NHNN: E-money issuance
  • Decision 254/QD-TTg: Non-cash payment development
  • Decree 101/2012/ND-CP: Payment systems

Licensing

  • E-wallet license: 50 billion VND minimum capital
  • Payment aggregation: SBV registration
  • Foreign ownership: Limits in payment services

Consumer Protection

  • Transaction limits: Per transaction, daily
  • Dispute resolution: NAPAS mediation
  • Data protection: Personal Data Protection Decree 2023
  • Fraud liability: Bank/wallet responsibility

Security Landscape

Authentication Methods

  • SMS OTP: Most common (being phased down)
  • Soft tokens: App-based OTP
  • Biometric: Fingerprint, face (growing)
  • Hardware tokens: Corporate, high-value

Fraud Statistics

  • Fraud rate: 0.01-0.02% of transactions
  • Common types: Phishing, card skimming
  • Trend: Increasing sophistication
  • Target: Elderly, less tech-savvy users

Security Measures

  • 3D Secure: Card authentication
  • Tokenization: Card number protection
  • Transaction monitoring: AI-based detection
  • User education: Security awareness campaigns

Cross-border Payments

Remittances

  • Inbound volume: $18-19 billion annually
  • Digital channels: 30-35% of flows
  • Major corridors: US, Australia, Japan, Korea
  • Fintech share: Growing (Remitly, Wise)

International Cards

  • Usage: 15-20% of card transactions
  • Categories: Travel, online shopping
  • FX fees: 2-3% typical
  • Contactless: Acceptance improving

QR Cross-border

  • Thailand: Connected via NAPAS
  • ASEAN plans: Regional QR connectivity
  • China: Limited direct integration
  • Potential: Tourism, trade facilitation

Challenges and Barriers

Infrastructure

  • Rural connectivity: Limited in remote areas
  • Interoperability: Gaps between systems
  • POS coverage: Still limited outside cities

Human Factors

  • Digital literacy: Varied by age, education
  • Trust: Cash preference among elderly
  • Habit: Behavioral change takes time

Economic

  • Merchant fees: 1-3% discourages some
  • Smartphone costs: Entry barrier for poor
  • Data costs: Mobile data expenses

Future Outlook

2025-2028 Projections

  • Digital share: 75-80% of transactions
  • Cash usage: 20-25% (mostly rural, elderly)
  • Biometric auth: Dominant authentication
  • CBDC: Pilot programs likely

Emerging Technologies

  • Biometric payments: Face/fingerprint at POS
  • Wearable payments: Smartwatch, band
  • Voice payments: Smart speaker integration
  • Blockchain: Cross-border, settlement

Policy Direction

  • Cashless targets: Government pushing adoption
  • Financial inclusion: Rural, underserved focus
  • Innovation sandbox: Fintech experimentation
  • International integration: ASEAN connectivity

Sources

  • State Bank of Vietnam Annual Reports
  • NAPAS Statistics
  • Ministry of Finance
  • World Bank Global Payments Report
  • McKinsey Payments Insights
  • Visa/ Mastercard Vietnam Reports
  • E-wallet company reports
  • Vietnam Banking Association
  • GSMA Mobile Money Reports