Among the rising economies of Southeast Asia, Vietnam shows great promise for e-commerce and digital payments to flourish. Vietnam is a traditionally cash-based economy, but increased smartphone usage along with the COVID pandemic has accelerated the use of e-payment technology. Here is a look at the trends that are shaping the future of online payments in Vietnam.
The use of digital wallets or e-wallets is booming in Vietnam. A survey by Visa in 2021 found that 85% of Vietnamese consumers have some digital wallets or e-payment technology. In fact, the country has over 40 e-wallet providers. About 71% of consumers use these payment apps at least once a week. For an online payment provider, Vietnam holds great potential especially if they feature digital wallets.
Vietnam has not banned cryptocurrencies, and its Ministry of Finance is spearheading research into the impact of crypto. This research is important for the country as it moves to a digital-based economy. In Vietnam, citizens are allowed to hold crypto as a form of digital assets. The research is being conducted with the hope that it will act as a guide for the legal framework for digital assets. In fact, in 2021, Vietnam was second in the world for the use of cryptocurrencies, with approximately six million people (and counting) owning digital assets. Given its burgeoning digital payments market, an omnichannel payment solution could flourish in the country.
Boost for Banking, Prepaid Cards and Credit Cards
The government of Vietnam plans to increase the penetration of the banking system in the country. The percentage of citizens with bank accounts stands at about 33%. The plan is to increase this percentage to 80% by the end of 2025. Along with increased awareness of banking, technology, and digital payments, credit card adoption is slowly increasing. Debit cards are the card of choice for most consumers, but that is slowly changing. Banks offer various benefits such as reward points, discounts, and cashback to boost credit card adoption. Along with credit cards, banks also promote prepaid cards with the benefit of rewards programs.
The Growing Popularity of E-Shopping
There is a strong current of change in Vietnam’s economy propelled by the push for digital payments. An omnichannel payment solution could help integrate a business’s payment processes, making it beneficial for both businesses and customers. This is why small as well as big brands are developing their e-shopping capabilities by partnering with leading payment processing providers in the country. How do they gain? Apart from many benefits, they get to offer their users a plethora of state-of-the-art features through shopping cart plug-ins. Not only does it make their purchase experience quick, easy, and safe, but it gives the website an intuitive interface, which is completely compatible and customizable. For example, you could use WooCommerce to sell digital, affiliate, or physical products and set them flat or free shipping rates. Similarly, you can customize your Buy Button to match your brand messaging, empower your customers to buy multiple products at the same time, or track growth and sales trends to stay on top of things.
All this is possible when you partner with the right online payment provider. Vietnam is set to become a cashless society in the future, and it can expect to see increased use of e-payment technology via digital wallets, online credit card payments, and cryptocurrencies.< Next post - Tips on How to Boost E-Commerce Sales with Online Payments Prev post - Implementing Innovation Payment Systems for Your E-Commerce Business >