Vietnam Payments Market Size (2024 - 2029)

Vietnam Payments Market Analysis

The Vietnam payments market is anticipated to register a CAGR of over 10.58% over the forecast period (2022-2027). Enablement programs by key retailers and the government encouraging digitization of the market are some of the drivers of the payments market in Vietnam.

• Cashless payment techniques such as contactless cards, QR codes, and mobile banking for digital and e-commerce services are growing increasingly popular in Vietnam, according to Le Van Tuyen, Deputy Director of the State Bank of Vietnam's Payment Department. Further added that the country has seen a significant movement away from cash in favor of electronic payment methods, which is also a goal of a cashless payment development strategy for the period 2021-2025.
• To ensure seamless cashless payment transactions, the National Payment Corporation of Vietnam (NAPAS), an intermediate payment service provider registered by SBV, has reserves equivalent to 50% of its capacity. The amount of transactions accounts for barely over 40% of the system's intended capacity, even during peak hours. In order to fulfill market demands, it has also produced new goods and services on a regular basis.
• NAPAS has introduced a set of domestic chip cards, comprising debit, prepaid, and credit cards, to complement the central bank's objective to move away from magnetic stripe cards and toward chip cards.
• High proliferation of e-commerce, including the rise of m-commerce and cross-border e-commerce supported by the increase in purchasing power, and growth of real-time payments, especially Buy Now Pay Later in the country, are the drivers of the payment market. While lack of a standard legislative policy remains, especially in the case of cross-border transactions tends to restrain the market growth.
• The emergence of COVID-19 in Vietnam has prompted residents to switch to non-cash payment methods, allowing the virus to spread more freely. The government quickly established large-scale social separation or confinement regulations after COVID-19 breakouts. Inevitably, the cashless society will cover and prioritize the majority of transactions, indicating that consumers would unconsciously embrace mobile wallets as an official payment method for even basic goods.

Vietnam Payments Industry Segmentation

The Vietnam Payments Market is Segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality). or POS, all transactions made on physical sales are within the market range of credit or debit card payments. This includes all face-to-face transactions, not just traditional in-store transactions, regardless of location. In both cases, cash payments are also an option for e-commerce sales.