Vietnam Mobile Payments Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.84 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Mobile Payments Market Analysis
The Vietnam mobile payments market was valued at USD 35.89 billion the previous year and is expected to grow at a CAGR of 9.84%, reaching USD 63.59 billion by the next five years. Mobile payment systems like M_Service, Viettel Digital Services, ZaloPay, National Payment Corporation of Vietnam, and GrabPay by businesses and services nationwide are progressing quickly in Vietnam. 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 country consider the Internet a basic necessity for daily living. Due to this, the number of cell phones and internet users grew massively, driving the country's mobile payment market.
- Many industry participants, like ZaloPay and GrabPay, use reward systems to retain existing mobile payment service users and attract new ones. Several service providers, for instance, provide scratch cards equipped with a reasonable amount to facilitate transactions through their applications. Such compensation schemes encourage customers to use mobile payment apps, boosting the mobile payment market in Vietnam.
- Additionally, the Party and the Government of Vietnam have recently given digitalization and improved 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 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 significant progress, particularly in payment operations, offering real advantages to individuals and companies. These outcomes are indicated by the data published by the State Bank of Vietnam that nearly 70% of adults have payment accounts in the past year. The payment systems have operated smoothly and safely, meeting almost all economic payment demands with a high average annual growth rate in mobile payment transactions. Many banking services are now entirely used in digital channels, like opening new accounts and issuing bank cards, deposits, money transfers, 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 online businesses 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 due to the introduction of digital wallets like the 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 hesitate 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.
Vietnam Mobile Payments 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 recent years.
- Moreover, 73.5 % of Vietnam currently use smartphones. In the previous year, the proposed National Digital Infrastructure Strategy for 2025 states that Vietnam wants to raise the rate to 85%. In recent years, Vietnam had 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, increasing to 93.5 million in the previous year.
- Mobile wallets are expected to push toward cashless payment in Vietnam, a country with a higher 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. The success of various Vietnamese-origin e-commerce platforms, such as Tiki, Sendo, and The gioididong, demonstrates Vietnam's ability to foster e-commerce. 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.
Retail to Experience Significant Growth
- Recently, 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. To make payments quicker and more accessible, 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 the previous year involved cashless payments, an increase of 9% from a year earlier. 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 Industry Overview
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 - ZaloPay developed the Accumulation Account product as an electronic wallet with various user advantages. To invest and make money, anyone may use idle funds up to a maximum of 10,000 VND. Profit is paid daily at a rate of 5% annually. The product is controlled by BIDV and ACB Fund Management Company Limited (ACBC) to make savings deposits at Vietnamese banks.
- June 2023 - Samsung Vina Electronics, a subsidiary of Samsung Electronics, signed a memorandum of understanding (MOU) with Shinhan Bank Vietnam, which offers corporate users various banking and financial services, to establish a strategic relationship between the financial products of Shinhan Bank and Samsung Wallet. The partnership will serve as a foundation to accelerate a convenient and comfortable lifestyle for Galaxy users and Shinhan customers within the scenario of mobile payment making its way to all activities and entertainment of Vietnamese customers.
Vietnam Mobile Payments Market Leaders
ZaloPay
National Payment Corporation of Vietnam
MoMo (M_Service)
Viettel Digital Services Corporation
Grab
*Disclaimer: Major Players sorted in no particular order
Vietnam Mobile Payments Market News
- 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.
- August 2023 - Visa, a provider of digital payments, has launched Apple Pay in the Vietnamese market. The move is seen as a significant milestone in the advancement of cashless payments in Vietnam and will see substantial banks supporting the service from its launch, including VPBank, Military Commercial Joint Stock Bank (MB), Asia Commercial Joint Stock Bank (ACB), Sacombank, Techcombank, and Vietcombank. For the first time, customers can now use Apple Pay with their Visa card and experience a seamless and secure payment method, further enhancing the convenience of digital transactions.
Vietnam Mobile Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Market Sizing and Estimates of Vietnam Mobile Payments Market
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Internet Penetration and Growing M-commerce Market
5.1.2 Increasing Number of Loyality Benefits in Mobile Environment
5.2 Market Restraints
5.2.1 Security Issues Associated with Mobile Payments
5.3 Key Regulations and Standards in the Mobile Payments Industry
5.4 Analysis of Business Models in the Industry
5.5 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)
5.6 Commentary on the growth of Mobile Commerce and its influence on the Market
6. MARKET SEGMENTATION
6.1 By Type (Market share in percentage based on relative adoption)
6.1.1 Proximity Payment
6.1.2 Remote Payment
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 MoMo (M_Service)
7.1.2 Viettel Digital Services Corporation
7.1.3 ZaloPay
7.1.4 Grab
7.1.5 National Payment Corporation of Vietnam
7.1.6 OnePay
7.1.7 PayPal Pte. Ltd.
7.1.8 VNPAY
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Vietnam Mobile Payments Industry Segmentation
Mobile payment is the transfer or payment method of funds, typically to a merchant, person, or business for bills, goods, and services, using a mobile device to execute and confirm the payment. The payment tool can be a mobile browser, digital (virtual or e-) wallet, or SIM toolkit / mobile menu. 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, supporting 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.
The Vietnam Mobile Payments Market is segmented by Type (Proximity Payment and Remote Payment). The market sizes and forecasts are in terms of value (USD) for all the above segments.
| By Type (Market share in percentage based on relative adoption) | |
| Proximity Payment | |
| Remote Payment |
Vietnam Mobile Payments Market Research FAQs
What is the current Vietnam Mobile Payments Market size?
The Vietnam Mobile Payments Market is projected to register a CAGR of 9.84% during the forecast period (2024-2029)
Who are the key players in Vietnam Mobile Payments Market?
ZaloPay, National Payment Corporation of Vietnam, MoMo (M_Service), Viettel Digital Services Corporation and Grab are the major companies operating in the Vietnam Mobile Payments Market.
What years does this Vietnam Mobile Payments Market cover?
The report covers the Vietnam Mobile Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Mobile Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Vietnam Mobile Payments Industry Report
Statistics for the 2024 Vietnam Mobile Payments market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Vietnam Mobile Payments analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
