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Cashless payment thrived amid Covid-19 outbreak

Cashless payment thrived amid Covid-19 outbreak

Monday 20, 04 2020
People restricted to going out during due to social distancing, and incentives offered by suppliers have contributed to the strong growth of online payment.

Trading value increased sharply

VPBank informed that the value of transactions via digital channels of this bank as of the end of the first quarter of 2020 has increased by 25% and the number of transactions has increased by 50% over the same period last year.

Shopee, the online shopping platform with the highest traffic in Vietnam, also witnessed a positive trend. "We have noticed an increasing demand for non-cash payments on Shopee platform and AirPay e-wallet." said Tran Tuan Anh, Managing Director of Shopee Vietnam.

A number of intermediaries and payment technology providers also confirmed a positive increase in the number of online payments in the last 2 months when the Covid-19 broke out in Vietnam.

According to Nguyen Ba Diep, Vice President, Co-Founder of MoMo, the number of payments via MoMo on online shopping and food delivery platforms such as Tiki, Lazada, Baemin ... all grew by several hundred percent.

Especially, there has been a boom of cashless payment at supermarkets, entertainment applications, online education, medical check-ups, and public service payments. The representative of Moca also noted an increase in cashless payment transactions through Moca wallets, especially payment transactions for Grab-based services such as GrabFood, GrabMart and most recently GrabAssistant.

Along with e-wallets, Visa also affirmed that social distancing has created a clear change in people's payment habits over the last few months. "Consumers have gradually shifted from using cash to other electronic payment methods to serve daily shopping needs." said Dang Tuyet Dung, Director of Visa in Vietnam and Laos.

Encourage contactless payments

In addition to the proactive shift by users, components of the e-payment ecosystem in Vietnam are also very quick to take the opportunity to inflate the demand for online payment. At the end of March, Visa announced cooperation with NextPay, which is aiming to develop 300,000 card acceptance locations in Vietnam by 2023.

According to Dung, to encourage contactless payment, Visa and partners will deploy incentive programs at major supermarkets such as Saigon Co.op, Lotte Mart and Starbucks chains to make it easy for consumers to make payment during this sensitive time.

Cashless payment thrived amid Covid-19 outbreak

MoMo, an e-wallet with more than 22,000 service providers and hundreds of thousands of payment acceptance points, said it still pursues the idea of developing the service in the direction that a person who does not know much about technology can also use the service easily.

"This is also an opportunity to popularize non-cash payments to many people, contributing to the goal of making Vietnam a cashless economy which was oriented by the Government." said the representative of Moca.

As a strategic partner of Grab, Moca has the opportunity to work closely with the platform to deploy incentives and launch new products, and to enhance cashless payment experience.

For example, GrabFrom-Home savings plan, GrabMart, GrabAssistant, payment via Moca wallet on Grab platform have helped solve daily needs of food without having to leave home. Shopee is offering free shipping for certain items and 100% discount vouchers for first-time users paying with AirPay wallet when shopping on the platform.

Dang Tuyet Dung said that Covid-19 has brought great opportunities for e-commerce platforms. New payment methods are also added to this platform to provide the most convenient shopping experiences for customers.

"However, this convenience also sometimes comes with transaction risks. Therefore, to ensure the safety of payment, consumers should be vigilant against hackers and malicious websites to avoid risks related to privacy of personal information" Dung recommended.

​>> Digital payment is currently the leading fintech segment in terms of players and investment

Source: Vietnamfinance

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