Mobile money use gains traction in Vietnam
Cashless payments through mobile money services are gaining momentum in Vietnam shortly after the central bank awarded licenses for the new service.
In early December last year, after many years of waiting, the State Bank of Vietnam officially licensed three carriers, Vietnam Posts and Telecommunications Group (VNPT), Viettel Military Industry and Telecoms Group (Viettel) and Vietnam Mobile Telecom Services (MobiFone) to pilot mobile money services in a two-year period which will expire in November 2023.
VNPT and Viettel are the only two that have so far put mobile money services into commercial use. MobiFone is still in the process of completing the preparation steps to participate in this area as soon as possible.
Almost half a million users
So far, more than 463,000 people have used mobile money as of February 11, 2022 according to data from the Ministry of Information and Communications released on that day. Overall, 77,200 vendors have accepted the payment method nationwide, the ministry said.
The development of mobile money aims to promote digital transformation in the financial sector and expand the use of cashless payment services among the population, especially for people in remote, mountainous and rural areas. Currently, in Vietnam only 50 per cent of adults have bank accounts, and most of the unbanked pay for everyday goods in cash.
The country’s telecom market currently has about 126.3 million subscribers, of which the three largest carriers and those licensed to pilot mobile money account for more than 97 per cent of the market share.
Digital transformation and financial inclusion
The ministry said it would continue to encourage telecom service operators to digitalise their telecommunications infrastructure with the target to “significantly contribute to developing e-government, the digital economy and digital society as a whole.”
The Covid-19 pandemic has greatly boosted the e-commerce market in Vietnam. According to a survey among 15,000 retailers, cashless payments in 2021 made up 72.8 per cent of total transactions, up nine per cent year-on-year.
Payments through bank accounts by debit cards became the most popular method, accounting for 36.5 per cent of total transactions at retail shops, restaurants and cafés, followed by cash (29.8 per cent), e-wallets (14.8 per cent), QR codes (9.9 per cent), credit cards (8.5 per cent) and payment gateways (0.5 per cent).
Notably, 89.3 per cent of retailers in Vietnam have positive assessments on non-cash payments, considering them a trend at present and in the future. This corresponds with the fact that the country’s e-commerce market reported a 24-fold increase in value over the last six years, from $5 billion in 2015 to $120 billion in 2021, and is forecast to reach $234 billion by 2025.
[caption id="attachment_38226" align="alignleft" width="300"] Viettel, Vietnam's largest telecom service provider, is pioneering mobile money[/caption] Cashless payments through mobile money services are gaining momentum in Vietnam shortly after the central bank awarded licenses for the new service. In early December last year, after many years of waiting, the State Bank of Vietnam officially licensed three carriers, Vietnam Posts and Telecommunications Group (VNPT), Viettel Military Industry and Telecoms Group (Viettel) and Vietnam Mobile Telecom Services (MobiFone) to pilot mobile money services in a two-year period which will expire in November 2023. VNPT and Viettel are the only two that have so far...
Cashless payments through mobile money services are gaining momentum in Vietnam shortly after the central bank awarded licenses for the new service.
In early December last year, after many years of waiting, the State Bank of Vietnam officially licensed three carriers, Vietnam Posts and Telecommunications Group (VNPT), Viettel Military Industry and Telecoms Group (Viettel) and Vietnam Mobile Telecom Services (MobiFone) to pilot mobile money services in a two-year period which will expire in November 2023.
VNPT and Viettel are the only two that have so far put mobile money services into commercial use. MobiFone is still in the process of completing the preparation steps to participate in this area as soon as possible.
Almost half a million users
So far, more than 463,000 people have used mobile money as of February 11, 2022 according to data from the Ministry of Information and Communications released on that day. Overall, 77,200 vendors have accepted the payment method nationwide, the ministry said.
The development of mobile money aims to promote digital transformation in the financial sector and expand the use of cashless payment services among the population, especially for people in remote, mountainous and rural areas. Currently, in Vietnam only 50 per cent of adults have bank accounts, and most of the unbanked pay for everyday goods in cash.
The country’s telecom market currently has about 126.3 million subscribers, of which the three largest carriers and those licensed to pilot mobile money account for more than 97 per cent of the market share.
Digital transformation and financial inclusion
The ministry said it would continue to encourage telecom service operators to digitalise their telecommunications infrastructure with the target to “significantly contribute to developing e-government, the digital economy and digital society as a whole.”
The Covid-19 pandemic has greatly boosted the e-commerce market in Vietnam. According to a survey among 15,000 retailers, cashless payments in 2021 made up 72.8 per cent of total transactions, up nine per cent year-on-year.
Payments through bank accounts by debit cards became the most popular method, accounting for 36.5 per cent of total transactions at retail shops, restaurants and cafés, followed by cash (29.8 per cent), e-wallets (14.8 per cent), QR codes (9.9 per cent), credit cards (8.5 per cent) and payment gateways (0.5 per cent).
Notably, 89.3 per cent of retailers in Vietnam have positive assessments on non-cash payments, considering them a trend at present and in the future. This corresponds with the fact that the country’s e-commerce market reported a 24-fold increase in value over the last six years, from $5 billion in 2015 to $120 billion in 2021, and is forecast to reach $234 billion by 2025.
