Mobile Money Widely Used in Vietnam
- Mobile Money will assist in promoting digital transformation in Vietnam
- According to the country’s Ministry of Information and Communications (MIC) data, 77,200 establishments have accepted the payment method nationwide
- 89.3% of retailers have positive assessments on non-cash payments, considering them a trend at present and in the future
Vietnam has welcomed the new year with a significant milestone: more than 463,000 people have used Mobile Money in the country.
The cashless payment service has created unprecedented opportunities for Vietnamese to do business and access financial services like never before.
Viettel Military Industry and Telecoms Group (Viettel), the Vietnam Posts and Telecommunications Group (VNPT) launched the service at the beginning of 2022.
The organization hopes that the Mobile Money service will make non-cash payments a habit of the Vietnamese people and develop a comprehensive financial system in Vietnam.
Acceptance of mobile money in Vietnam
Digital transformation is rapidly evolving, and Vietnam has not been immune to its impact.
With the rapid development of mobile payment solutions in recent years, many benefits can be reaped from their incorporation into the daily life of the average Vietnamese citizen.
The development of Mobile Money will assist in promoting digital transformation while expanding the use of cashless payment services to the Vietnamese people, especially those living in remote, mountainous, and rural areas.
Vietnam government actively encourage mobile money
The government has actively encouraged this by implementing policies that allow consumers to make payments using the Mobile Money service instead of cash.
The ministry will build mechanisms to promote, manage and supervise the deployment of Mobile Money services this year.
It will also encourage telecom service operators to transform telecommunications infrastructure into digital infrastructure, which will significantly contribute to developing e-government, the digital economy, and the digital society.
According to the country’s Ministry of Information and Communications (MIC) data, 77,200 establishments have accepted the payment method nationwide.
Viettel, the largest telecommunication operator in Vietnam, has recently set up 80,000 points to provide consultations and support for customers in registering and using the service.
The possible gap in financial accessibility and awareness in Vietnam
In 2020, 70% of adults in Vietnam had a bank account, but nearly half of them do not have access to credit, according to the State Bank of Vietnam.
Meanwhile, more than 70 % of the population is concentrated in rural areas, but access to modern banking services in these areas is minimal. But now, mobile money is expected to push towards cashless payment in Vietnam.
The three largest carriers and those licensed to pilot Mobile Money account for more than 97% of the market share, while the country’s telecom market currently has about 126.3 million subscribers.
Cashless payments in 2021
According to a survey of 15,000 retailers, cashless payments in 2021 made up 72.8% of total transactions, up 9% year-on-year.
Payments through bank accounts became the most popular method, accounting for 36.5% of total transactions at retail shops, restaurants, and cafés, followed by cash (29.8%), e-wallets (14.8%), QR code (9.9%), bank cards (8.5%), and payment gateways (0.5%) according to OpenGov Asia.
89.3% of retailers have positive assessments on non-cash payments, considering them a trend at present and in the future.