Vietnamese E-Wallets Lead the Way: Embracing a Cashless Future

Two domestic e-wallets, MoMo and ZaloPay, are leading the market in Vietnam, surpassing other payment applications by a significant margin.

According to the report “The Connected Consumer,” released in the first quarter of 2023 by Decision Lab in collaboration with the Mobile Marketing Association of Vietnam, Vietnamese e-wallets and payment intermediaries have an absolute advantage over foreign competitors in the domestic market.

Vietnamese e-wallets dominate the market, with MoMo holding the highest market share at 68%. ZaloPay ranks second with 53%, followed by ViettelPay at 27%. ShopeePay (25%), VNPay (16%), and Moca (7%) hold the subsequent positions.

The report also reveals that MoMo is the most popular fintech app, with a 48% preference rate, which is a 2% increase compared to the previous quarter in . MoMo’s popularity is dominant across all three generations (Gen X, Y, and Z).

Notably, MoMo has gained a significant advantage, with over 50% preference among two user groups: Gen Z (aged 16-25) and Gen Y (aged 26-41), with preference rates of 51% and 54%, respectively.

Recently, this Vietnamese e-wallet was selected by Apple as an integrated payment method on the Apple online store in Vietnam, providing Vietnamese users with diverse payment options for purchasing Apple products.

According to the State Bank of Vietnam, cashless payment activities continued to grow significantly in the first three months of 2023 compared to the same period in . The transaction volume through interbank electronic payment systems increased by 8.55% in value. The number of transactions through the financial switching and electronic clearing system increased by 70.77% in volume and 18.55% in value.

Cashless Day, proposed by Tuoi Tre newspaper on June 16th, 2019, promotes the use of non-cash payment methods for shopping and payment transactions, offering incentives to consumers from credit institutions, payment intermediaries, retailers, and service providers.

The microsite for Cashless Day can be found at https://ngaykhongtienmat.tuoitre.vn.

Key activities in the event include:

1. The national conference “Cashless Day,” held on June 16th at Rex Hotel in Ho Chi Minh City, with approximately 400 guests from central to local levels. The event will address topics such as increasing data connectivity, promoting smart payments, resolving integration and connectivity issues between industries and systems, ensuring security in payment operations, the explosion of payment technologies, and the challenges that need to be addressed.

The discussion session will provide an opportunity for policy-makers, credit institutions, payment intermediaries, businesses, and experts to discuss specific issues and solutions to promote cashless payments in Vietnam. The conference will also be livestreamed on the Cashless Day and Tuoi Tre newspaper’s fan pages.

2. The “Cashless Warrior” competition starts on June 16th, 2023, ends on July 15th, 2023, and announces the winners on July 21st, 2023. Participants are required to create a short video showcasing at least three cashless transactions while demonstrating and expressing the practical benefits of such transactions.

These videos will be posted on TikTok, Facebook, and linked to the microsite of the Cashless Day program. The competition aims to capture the interest of young people and leverage the benefits of cashless payments for a smarter lifestyle.

3. The highlight of 2023 is the “Cashless Town” festival, taking place from June 16th to June 18th in the heart of Ho Chi Minh City. This event is organized by the Cashless Day program in collaboration with the Department of Industry and Trade of Ho Chi Minh City, along with various suppliers, banks, and credit institutions.

The festival aims to create a mini cashless society where participants can explore shopping, dining, and entertainment experiences without using physical cash. Visitors will enjoy the convenience of cashless transactions while receiving exclusive offers from partnering businesses. They will also have the opportunity to experience the benefits of online public services and explore the history of currency through an exhibition.

Additionally, the festival will feature captivating art performances on the main stage, adding a vibrant atmosphere to the event. It aims to engage both consumers and businesses, with numerous activities and promotions from participating banks, card issuers, e-wallet providers, and retailers.

The Cashless Day initiative has gained considerable traction in Vietnam, promoting the adoption of digital payment methods and driving the country towards a cashless future. With the leading position of domestic e-wallets like MoMo and ZaloPay, the Vietnamese market is witnessing a substantial shift towards cashless transactions.

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by Lien Huong Tran based on Tuoi Tre’s news sources