A survey conducted by Visa and Clear of about 1,000 people in the second quarter of 2020 showed that the rate of cashless payments in Vietnam is increasing.

A supermarket accepts almost all kinds of cashless payments. (Photo: Hai Dang)

About half of respondents said they had increased the frequency of using advanced payment methods. Among them, QR Code payment (55%) was the most used form, followed by e-wallet payments (51%) and contactless transactions via mobile phones (50%).

Users also increased the number of times using other forms of transactions such as online payments, swiping cards, and contactless cards, with nearly 50%.

The main reasons why Vietnamese prefer cashless payments are: preventing the risk of theft (58%) and reducing the risk of disease infection (58%). Easy payment and financial tracking are other conveniences.

Dang Tuyet Dung, director of Visa Vietnam and Laos, cited the survey results to show that many people believe that the cashless society allows easier identification of illegal transactions, providing greater security in transactions, and establishing an efficient society.

A trend that is clearly forming, especially in big cities, is that some people no longer carry a lot of cash with them but take advantage of other advanced payment methods instead of having to withdraw money from the wallet.

Respondents answered that the main reason why they do not carry cash is that they use cards more (68%) and contactless payment more (59%). Also, many people carry less cash because there are many points of sales (43%).

Visa Vietnam director said that the study was conducted in big cities and provinces, with people working full time and part time, of many different ages. The digital payment trend is popular everywhere, not just in the central areas.

Similar to previous data, people use cashless payments the most for bill payments. Up to 69% believe that the payment for electricity, water, Internet fees, and others in the future can be completely cashless. Other sectors such as supermarket payments, overseas travel, taxis/ride hailing service payments, and convenience stores rank next in the group that survey respondents believe can be digitally paid.

The Covid-19 pandemic has had a strong impact on digital transformation in Vietnam and globally. E-commerce has grown strongly, cashless payments have increased, and online meetings have become a new habit.

Dung said that from the first quarter of 2020 to the first quarter of 2021, the purchasing power of the whole market grew strongly, in which the number of consumers in Vietnam using payment cards increased by 35%. Nearly 100% of Visa's partner banks are qualified to provide contactless payments. Contactless payments grew by more than 200%.

Hai Dang

E-wallet providers fighting for survival in Vietnam

The growth of e-wallets may be good news for Vietnam’s cash economy, but fierce competition among e-wallet providers may result in a ‘survival of the fittest’ situation.