Vietnam Mobile Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Vietnam Mobile Payments Market is segmented by Type (Proximity Payment, Remote Payment).

Market Snapshot

Vietnam Mobile Payments Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 15.64 %
Vietnam Mobile Payments Market Key Players

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Market Overview

The Vietnam mobile payments market for mobile payments is anticipated to expand at a CAGR of 15.64 percent over the projected period (2022 - 2027). The use of mobile payment systems like M_Service, Viettel Digital Services, ZaloPay, National Payment Corporation of Vietnam, and GrabPay by businesses and services nationwide is progressing quickly. This trend is anticipated to persist during the projection period due to rising internet usage and the rapid expansion of online shopping.

  • Mobile phones, particularly smartphones, have elevated to essential significance in the context of the world economy's fast expansion. Additionally, most people in the nation now consider the internet a basic necessity for daily living. Due to this, the number of cellphones and internet users grew massively, driving the market for mobile payments in the country.
  • Many industry participants, like ZaloPay and GrabPay, use reward systems to both retain existing mobile payment service users and attract new ones. In order to facilitate transactions through their applications, several service providers, for instance, provide scratch cards equipped with a reasonable amount. Such compensation schemes encourage customers to use mobile payment apps, boosting the mobile payment market.
  • Additionally, the Party and the Government of Vietnam have recently given digitalization and the improvement of non-cash payment a great deal of attention and firm directives. Based on such directives, the State Bank of Vietnam (SBV) has continuously enhanced the legislative frameworks and regulatory procedures to support the banking industry's digital transformation and the adoption of cashless transactions. The payment infrastructure has received steadily increasing amounts of investment. Financial literacy and communication have both been emphasized. These have produced crucial pillars for the rapid development of digital payments and banking digitalization.
  • Further, banking digitalization has made great progress, particularly in payment operations, offering real advantages to individuals and companies. These outcomes is indicated by the data published by the State Bank of Vietnam that nearly 70% of adults have payment accounts by 2020. The payment systems have operated smoothly and safely, meeting almost all economic payment demands with high average annual growth rate in mobile payment transactions. Many banking services are now entirely used in digital channels like opening new accounts and bank card issuance, deposits, money transfer, etc.
  • The market for mobile payments is expected to expand over the forecast period due to the growing popularity of M-commerce in Vietnam, which involves doing online business utilizing wireless devices like smartphones.
  • Furthermore, M-commerce enables consumers to transact anywhere there is wireless internet access. Additionally, businesses like ZaloPay have already debuted their mobile commerce offerings. Customers can now instantly make in-store purchases without the hassle of swiping a card thanks to the introduction of digital wallets like National Payment Corporation of Vietnam and M_Service.
  • The market for mobile payments is growing but is being constrained by rising data breaches and security problems. Additionally, citing concerns about security and unlawful use of personal data, many customers are hesitant to accept the new technology.
  • It should be emphasized that when the COVID-19 pandemic first appeared, the relevance of digital financial services increased. Consumers benefit financially from developments in financial technology, internet banking, and electronic payments. According to World Health Organization (WHO) research, customers should avoid using cash and contact-based payments since they might spread germs. Instead, they should opt for mobile payments. This payment at convenience made mobile payments an essential activity in the country.

Scope of the Report

Mobile payment is a money payment made for a product or service through a portable electronic device such as a tablet or cell phone. The study tracks the transaction type of mobile payment by Proximity and Remote payment. The study tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for Vietnam’s mobile payments market estimates and growth rates throughout the anticipated period. The study looks at COVID-19's overall influence on Vietnam’s payment ecosystem.

By Type (Market share in percentage based on relative adoption)
Proximity Payment
Remote Payment

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Key Market Trends

Increased Mobile Penetration Drives the Market in the Country

  • Increased utilization of smartphones can switch to m-payments, which make payments easier due to their convenience and quick process. As per GSMA, between 2021 and 2025, 15 million new mobile internet users in Vietnam will come from Vietnam. By 2025, smartphones will account for more than 85% of connections in Vietnam, up from 62 % in 2020.
  • Moreover, 73.5 % of Vietnam currently uses smartphones. The proposed National Digital Infrastructure Strategy to 2025 states that Vietnam wants to raise the rate to 85% by the end of 2022. By the end of 2021, Vietnam would have 91.3 million smartphone customers, according to the Department of Telecommunications, a division of the Ministry of Information and Communications (MIC). There were two million more smartphone customers by March 2022, increasing the total to 93.5 million.
  • Mobile wallets are expected to be a push toward cashless payment in Vietnam, a country with a higher existence of unbanking population, and most people pay for goods valued at less than VND100,000 VND (USD 4.41) by cash. Through increased penetration of smartphones, people get acquainted with mobile payments and experience the convenience of using them.
  • Further, the increasing mobile penetration has driven the growth of m-commerce in the country. Vietnam's ability to foster e-commerce is demonstrated by the success of various Vietnamese-origin e-commerce platforms, such as Tiki, Sendo, and Thegioididong. These platforms have grown into big e-commerce powerhouses thanks to investments from Japan, Germany, the United States, South Korea, China, and Singapore. The growth of online shopping has further facilitated the growth of mobile wallets in the country.
Vietnam Mobile Payments Market Share

Retail to Experience Significant Growth

  • In December 2021, A banh mi (Vietnamese sandwich) store on Dang Van Ngu Street in Hanoi drew a lot of young consumers not just because the price of the sandwich was under VND 20,000 (USD 0.8) but also because the young customers were delighted with the shop's new payment mechanism. Such experiences indicate the potential for growth of the mobile payments market in the country.
  • Moreover, customers may use the QR code attached directly to the glass cabinet housing the sandwich to purchase without using cash by swiping it. In order to make payments quicker and easier, the business accepts more than ten types of e-wallets.
  • Since the pandemic began, there has been a noticeable rise in the usage of e-wallets, payments made through cellphones and QR codes, and a strong demand for instant credit solutions like buy-now-pay-later, particularly among the underbanked and unbanked populations.
  • The COVID-19 epidemic has significantly increased the market for online purchases, with non-cash payments making up 70% of all retail transactions in Vietnam last year. A study of 15,000 shops found that 72.8% of all transactions in 2021 involved cashless payments, an increase of 9% over the previous year. With 36.5% of all transactions at retail stores, restaurants, and cafes made using bank accounts, it has overtaken cash (29.8%), e-wallets (14.8%), QR codes (9.9%), bank cards (8.5%), and payment gateways (0.5% ) as the most common means of payment.
Vietnam Mobile Payments Market Growth

Competitive Landscape

The Vietnam mobile payments market is moderately consolidated and consists of several major players. The major players with a prominent share in the market such as M_Service, Viettel Digital Services, ZaloPay, National Payment Corporation of Vietnam, GrabPay, etc., are focusing on expanding their customer base across foreign countries through the adoption of various technologies.

  • April 2022 - The Accumulation Account product was developed by ZaloPay as an electronic wallet with various advantages for users. To invest and make money, anyone may use idle funds up to a maximum of 10,000 VND. Profit paid daily, at a rate of 5% annually. The product is under the control of BIDV and ACB Fund Management Company Limited (ACBC) for the purpose of making savings deposits at Vietnamese banks.
  • December 2021 - MoMo, the prominent e-wallet provider in Vietnam, announced that it has raised USD 200 million from four investors, including Mizuho Bank, raising its valuation beyond USD 2 billion. In addition to Ward Ferry Management, the investment group included current owners Goodwater Capital LLC and Kora Management, according to a statement from MoMo.

Recent Development

  • May 2022 - To roll out a new version of QR Pay in the mobile apps of 35 banks around the country, e-wallet SmartPay collaborated with Viet Capital Bank. The National Payment Services Corporation (Napas), which developed the VietQR (QR code standard), was used to create the current configuration of the QR Pay function. The collaboration would enable all users of the banks' mobile applications to scan the new QR code and make real-time payments at any of SmartPay's 667,000 payment locations.
  • June 2021 - With the purchase of local AI firm Pique, Vietnam's prominent payment startup MoMo has made its first acquisition to better capitalize on the data of its 25 million registered users. According to a statement, the creator of the AI business Pique, Trinh Xuan Tuan, and the whole data science and engineering team were hired by MoMo. MoMo also purchased all of Pique's intellectual property.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Sizing and Estimates of Vietnam Mobile Payments Market

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of COVID-19 Impact on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Internet Penetration and Growing M-commerce Market

      2. 5.1.2 Increasing Number of Loyality Benefits in Mobile Environment

    2. 5.2 Market Restraints

      1. 5.2.1 Security Issues Associated with Mobile Payments

    3. 5.3 Key Regulations and Standards in the Mobile Payments Industry

    4. 5.4 Analysis of Business Models in the Industry

    5. 5.5 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    6. 5.6 Commentary on the growth of Mobile Commerce and its influence on the Market

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type (Market share in percentage based on relative adoption)

      1. 6.1.1 Proximity Payment

      2. 6.1.2 Remote Payment

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 M_Service

      2. 7.1.2 Viettel Digital Services

      3. 7.1.3 ZaloPay

      4. 7.1.4 Grab Co., Ltd.

      5. 7.1.5 National Payment Corporation of Vietnam

      6. 7.1.6 OnePay

      7. 7.1.7 PayPal Pte. Ltd.

      8. 7.1.8 VNPAY

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability
List of vendors may vary based on market dynamics

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Frequently Asked Questions

The Vietnam Mobile Payments Market market is studied from 2020 - 2027.

The Vietnam Mobile Payments Market is growing at a CAGR of 15.64% over the next 5 years.

M_Service, Viettel Digital Services, ZaloPay, Grab Co., Ltd., National Payment Corporation of Vietnam are the major companies operating in Vietnam Mobile Payments Market.

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