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Sunday, June 16, 2024

Cashless payments on the rise in Vietnam: Visa report

The Saigon Times

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HCMC – Visa, a global leader in digital payments, has released a report on consumer payment trends, saying that 56% of Vietnamese respondents surveyed are now carrying less physical cash than a year ago.

The transition to cashless payments is primarily driven by younger consumers, including those from Gen Z and Gen Y, with an impressive adoption rate of at least 89%. This reflects a progressive mindset among Vietnamese customers towards embracing modern financial technologies, the report said.

Moreover, merchants are increasingly accepting cashless payments, particularly through mobile wallet platforms, across various sectors such as food and dining, retail shopping, and convenience stores.

This shift is accompanied by a transformation in in-store commerce experiences, with merchants leveraging generative AI technologies to enhance customer engagement and drive sales.

Vietnam stands out as one of the leading Southeast Asian markets in the rapid adoption of mobile wallets, poised to accelerate the growth of digital finance. The report says that at least four in every five Vietnamese consumers utilize mobile wallets, primarily influenced by Gen X and more affluent consumers.

Real-time payments (RTPs) are also gaining traction in Vietnam, with at least two in every five consumers having utilized them. These RTPs are diversifying in their use cases, including cross-border transactions, peer-to-peer transfers, merchant/retailer payments, and bill payments.

Buy Now Pay Later (BNPL) services are popular among Vietnamese consumers, offering flexible payment options and enhancing consumer engagement.

While credit cards are less utilized for wallet top-ups and funding, they remain the preferred choice for BNPL plans in Vietnam, driven by easy-to-use apps, free vouchers, rewards points, and the ease of tracking payments.

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