Vietnam’s Cashless Transformation: Consumers Say Goodbye to Cash

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Today, we gather here to discuss the remarkable growth of cashless payments in Vietnam. It is evident that an increasing number of Vietnamese consumers are seeking more efficient and secure ways to manage their finances, leading to the rapid popularity of cashless transactions. 

From contactless card payments to mobile wallet transactions, the range of cashless options available in Vietnam is expanding, revolutionizing how people conduct their financial transactions.

A recent report from Visa reveals that 65 percent of consumers in Vietnam carry fewer physical cash, while 76 percent have embraced e-wallets. Moreover, card usage stands at an impressive 82 percent, with over 80 percent of consumers utilizing card payments, QR code transactions, and e-wallets on a weekly basis.

According to the State Bank of Vietnam (SBV), non-cash payment transactions experienced substantial growth in 2022, with an 85 percent increase in volume and a 31 percent increase in value.

The utilization of electronic transactions has surged by 89 percent through the internet and has witnessed even higher triple-digit growth through mobile phones and QR code scanning.

Recognizing the significance of financial inclusion and reducing dependence on cash, the State Bank is actively promoting digital and cashless payment methods, particularly in rural areas.

During the last nine months of 2022, the Mobile Money service served an impressive 14 million customers, facilitating transactions totaling a staggering US$7 billion. This remarkable achievement serves as a testament to the growing popularity and trust in the service, highlighting its crucial role in developing a cashless payment system in Vietnam.

While the promotion of cashless payments in Vietnam presents numerous advantages, it is not without its challenges.

One significant hurdle is the need for improved infrastructure in remote areas, including better internet connectivity and an increased number of point-of-sale terminals. Additionally, concerns surrounding security and privacy continue to influence consumer adoption of digital payments. Many individuals are still apprehensive due to fears of fraud and potential data breaches.

Nevertheless, Vietnam’s government and financial institutions are fully committed to overcoming these obstacles and promoting the widespread adoption of digital payments.

Thank you for joining us today and staying connected with Vietnam Untold.