Mobile payment is becoming a new trend with the rise of technologies like QR codes and contactless payments. Vietnam’s central bank says the value of cashless transactions more than doubled over the first three quarters of 2018. The Department of Payments at the State Bank of Vietnam reported a strong rise in payments via electronic channels between January and September, compared to the same period last year.
As can be seen from the charts, the value of online payments rose by 18.3 percent this year, indicating that this sector will become a thriving industry in the future.
The value of transactions via mobile apps rose by 126 percent - a remarkable rate, which is due to the fact that Vietnamese customers are now familiar with this new convenient mode of payment.
The value of transactions via e-wallets rocketed to 261 percent. Thanks to the rapid development of online sales in Vietnam, there are many well-known e-wallet brands including Momo, Zalopay, Airpay, Vnpay that have entered this potential market.
In the same tendency, the number of transactions via the Internet rose by 33 percent, which is far larger than the percentage of the value of online payments.
The number of transactions via mobile apps went up 30 percent and is expected to reach 50 percent by the end of 2020 according to VietnamCredit’s analysts. Mobile payment is becoming a new trend with the rise of technologies such as QR codes, contact and contactless payments, and the tokenization of card information.
The number of transactions via e-wallet channel increased by 28 percent. This growth is worth noticing due to the fact that despite experiencing 28-percent increase in the number of transactions, the value of money went up to 161 percent. It means that Vietnamese people are ready to spend large amounts of money through e-wallets.
The first months of 2018 saw the number of users and the value of transactions through electronic channels such as online, mobile and e-wallets rocket at many banks.
At Sacombank, statistics show that as of October, the number of registrations for online banking reached over 1.3 million accounts and 1.1 million accounts for mobile banking. The total value of transactions per month through both channels exceeded VND108 trillion ($4.63 billion).
For VietinBank, the country’s second-largest lender by assets, the number of internet banking users in the first half of this year surged 114 percent over the same period last year to a total of 1.5 million accounts and VND44.26 trillion ($1.90 billion) in total transaction value. Its mobile banking users also reached 1.5 million, engaging in transactions totaling VND64.35 trillion ($2.76 billion) between January and June.
Over 7 million people are using digital services provided by MBBank. The average transaction value per month reached VND27.4 trillion ($1.17 billion), with digital transactions making up approximately 2.6 million out of 3 million total monthly transactions seen at this bank.
In the near future, in order to continue developing non-cash payment channels, credit institutions should pay attention to linking their cashless systems with the public sector, specifically in fields like health, education, payroll, and utilities. Cashless services should also expand to include online payment options for public services like buses, trains, and other smart urban solutions.