THE COVID-19 EPIDEMIC HAS CAUSED VIETNAMESE PEOPLE TO CHANGE THEIR CASH USE HABITS. BESIDES, DISCOUNT POLICIES OF ONLINE PAYMENT CHANNELS HAVE ALSO CONTRIBUTED TO THE STRONG GROWTH IN CASHLESS PAYMENT ACTIVITIES.
As of May 2020, there had been 34 companies licensed to provide intermediary payment services in Vietnam, of which more than 20 are e-wallets associated with an active bank account. The frequency of use and average daily spending value via e-wallets are recorded to be really high.
Accordingly, users spend an average of USD 10 – 12 / transaction, with a frequency of about 1.6 - 2.2 transactions / day (according to the results of a survey conducted in the fourth quarter of 2019 by an independent market research company.).
Besides, the effects of the Covid-19 epidemic have given cashless payments the opportunity to thrive in all payment channels from e-wallets to bank accounts and cards. Accordingly, banks, credit institutions, e-commerce platforms, supermarkets, electronics supermarkets, telecommunication network operators, accommodation establishments, business establishments, airlines, etc. all have had promotion policies with discounts from 5% to 50% or refunds up to 10% for customers who pay the bill without using cash.
Statistics of the State Bank indicate that by the end of the first quarter of 2020, there had been 87.78 million domestic bank cards and 15.35 million international cards in Vietnam. Also, during this period, the number of transactions through ATMs reached VND 727,691 billion, while payment via POS / EFTPOS / EDC reached VND 148,419 billion. Vietnam also has 88.5 million bank accounts. Particularly, the State Bank's payment system alone handles USD 17 billion a day.
According to the representative of the State Bank, payment via card, the Internet and mobile phones in 4 months of 2020 all achieved a strong growth compared to the same period in 2019. Domestic payment via bank card increased by 26,2% in volume and 15.7% in value; Internet payment increased by 3.2% in volume and 45.7% in value; Mobile payment increased by 198.8% in volume and 21.9% in value over the same period in 2019. Mr. Nguyen Dang Hung - Deputy General Director of National Payment Corporation of Vietnam (Napas), said that Napas currently handles 2.8 million transactions / day, equivalent to nearly VND 21,000 billion / day (nearly USD 1 billion).
The payment trend in the Vietnamese economy has shifted towards using more non-cash payment instruments. Public service payment without cash continues to be widely expanded.
Writer: Henry Tran - VietnamCredit