Vietnam ranks among the leading Southeast Asian markets in embracing mobile wallets for payments, with at least four out of five Vietnamese consumers utilizing such mobile wallets, and Gen X and wealthier demographics driving this trend, according to Visa’s Consumer Payment Attitudes (CPA) study unveiled on Tuesday.

The CPA study provides insights into Vietnam's payment landscape, highlighting a surge in cashless transactions and offering a comprehensive overview of the future of retail in the country.

In the study, 6,550 consumers in Singapore, the Philippines, Malaysia, Indonesia, Thailand, Vietnam, and Cambodia were surveyed in October-November 2023.

A total of 1,000 Vietnamese consumers, comprising both part-time and full-time workers, were interviewed nationwide. The sample was meant to achieve a balanced representation across various age groups (18-65), genders, and income levels.

Rise of cashless transactions

While cash has traditionally dominated daily transactions, there is a notable shift toward digital payments in Vietnam.

According to the CPA report, 56 percent of the Vietnamese respondents report carrying less physical cash compared to a year ago, indicating a growing acceptance of modern financial technologies.

Younger consumers, particularly from Gen Z (born during the late 1990s and early 2000s) and Gen Y (born from 1981 to 1996), are leading this transition to cashless payments, with at least 89 percent having already embraced cashless methods.

The adoption of cashless payments, particularly through mobile wallets, is on the rise among merchants, especially in sectors like food and dining, retail shopping, and convenience stores.

In-store shopping experiences are evolving significantly, with merchants increasingly leveraging generative AI technologies to improve customer engagement and boost sales.

Visa's report delves into the prevailing trends shaping Vietnam's cashless economy, shedding light on key developments that are reshaping the financial landscape.

Ascendance of mobile wallets

Vietnam stands out as one of the leading Southeast Asian markets in swiftly embracing mobile wallets as the favored mode of payment, signaling a significant boost to the expansion of digital finance.

At least four in every five Vietnamese consumers utilize mobile wallets, primarily influenced by Gen X and more affluent consumers.

Vietnam is poised to emerge as one of the regional leaders in mobile finance.

Real-time payment revolution

The adoption of real-time payment solutions has gained significant momentum in Vietnam, underscoring the nation's embrace of cutting-edge financial technologies.

Real-time payments (RTPs) offer unparalleled convenience and efficiency, driving further digitization of the economy.

In Vietnam, RTPs are growing in popularity, with at least two in five consumers having used them.

Use cases for RTPs are gradually expanding, including a variety of transactions such as cross-border transfers, peer-to-peer transfers, merchant and retailer payments, as well as bill payments.

Emergence of BNPL services

Buy Now Pay Later (BNPL) has become a widely embraced service among Vietnamese consumers, providing them with flexible payment choices and enhancing consumer involvement, according to the Visa study.

In Vietnam, credit cards are the preferred method for BNPL plans, despite being less commonly used for wallet top-ups and funding.

The popularity of BNPL offerings in Vietnam can be attributed to user-friendly apps, complimentary vouchers, reward points, and the convenience of tracking payments.

Vietnam's cashless payment revolution presents unprecedented opportunities for economic growth and innovation, unlocking opportunities for consumers and businesses alike in the continued shift to a cashless society.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!