Market Size of Vietnam Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 10.58 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Vietnam Payments Market Analysis
The Vietnam payments market is anticipated to register a CAGR of over 10.58% over the forecast period (2022-2027). Enablement programs by key retailers and the government encouraging digitization of the market are some of the drivers of the payments market in Vietnam.
- Cashless payment techniques such as contactless cards, QR codes, and mobile banking for digital and e-commerce services are growing increasingly popular in Vietnam, according to Le Van Tuyen, Deputy Director of the State Bank of Vietnam's Payment Department. Further added that the country has seen a significant movement away from cash in favor of electronic payment methods, which is also a goal of a cashless payment development strategy for the period 2021-2025.
- To ensure seamless cashless payment transactions, the National Payment Corporation of Vietnam (NAPAS), an intermediate payment service provider registered by SBV, has reserves equivalent to 50% of its capacity. The amount of transactions accounts for barely over 40% of the system's intended capacity, even during peak hours. In order to fulfill market demands, it has also produced new goods and services on a regular basis.
- NAPAS has introduced a set of domestic chip cards, comprising debit, prepaid, and credit cards, to complement the central bank's objective to move away from magnetic stripe cards and toward chip cards.
- High proliferation of e-commerce, including the rise of m-commerce and cross-border e-commerce supported by the increase in purchasing power, and growth of real-time payments, especially Buy Now Pay Later in the country, are the drivers of the payment market. While lack of a standard legislative policy remains, especially in the case of cross-border transactions tends to restrain the market growth.
- The emergence of COVID-19 in Vietnam has prompted residents to switch to non-cash payment methods, allowing the virus to spread more freely. The government quickly established large-scale social separation or confinement regulations after COVID-19 breakouts. Inevitably, the cashless society will cover and prioritize the majority of transactions, indicating that consumers would unconsciously embrace mobile wallets as an official payment method for even basic goods.
