Vietnam Mobile Payment welcomes Cashless Age

Updated On : july 2020

The journey of mobile payments is sure to be filled with drastic changes in Vietnam. Vietnam's mobile payments landscape has continued to evolve on the back of strong growth and expansion coming from industry players, investment deals, and efforts by the government to establish a favorable environment for the industry to thrive.

When card transactions were at their peak, innumerable problems piled up, ultimately paving the way for other modes of transactions. People were actively looking for other modes of online transactions that were convenient and easier to access and carry out. To enhance the usage of online transactions safely and securely over a wide range of digital platform supports.

Momo (Vietnam's top Payment App) launched the Mobile Payments platform to offer secured and easier transactions. In 2020, MoMo and Saigon Co-op partnership to deploy a series of new digital services and products including vouchers and prepaid cards. MoMo will also team up with Saigon Co.op to build electronic stores and introduce money transfer services to the retailer's customers. Leading Banks in Vietnam, payment acceptance points, and service providers are in direct connection with MoMo mobile wallet.

According to the State Bank of Vietnam, there were 32 non-bank organizations authorized to provide payment intermediary services like M_Service (MoMo), VNPay and Payoo; consumer technology platforms such as Grab with Moca, and SEA with AirPay; established consumer companies like retailer Vingroup with VinID Pay, and telco Viettel with Viettel Pay; as well as established financial services companies such as banks, insurers and financial institutions with their own respective digital wallet offerings.

Vietnam's four most popular digital wallets currently are VinID Pay, Airpay, Moca, which runs on the Grab platform, and MoMo.

According to Saigon Online, about 50% of Vietnamese have a bank account, but the mobile subscriber density is 100%, says the ministry of information and communications.

The Banking conference held on June 2020, the Vietnam's minister of information and communication Nguyen Manh Hung said that mobile money could help accelerate non-cash payment adoption, and allow the poor and those left out of the formal financial system to access banking and payments services.

Hence, the Mobile wallets are one of the fastest growing trends concerning the future of mobile payment technology. That's because mobile wallets offer speed, convenience, and security for consumers.

Future mobile payment processors will be able to handle a variety of payment options-including cash, traditional cards, and mobile wallets. Near field communication (NFC) is changing the way consumers and merchants complete a transaction, reducing the need for physical forms of payment.