Payments Services Market in Cambodia, Laos, Myanmar (CLM), and Vietnam, Forecast to 2025

Market Potential for Payments in all 4 Countries Indicates Favorable Investment Opportunities

China’s Belt and Road Initiative (BRI) launched in 2013 aims to boost global trade connectivity and cross-border transactions between China and countries on the new Silk Road, including Cambodia, Laos, Myanmar (collectively called as CLM), and Vietnam. It is expected to enhance financial cooperation in the region, and eventually bolster the growth of the payments industry in these countries. Besides Vietnam, we expect Myanmar and Cambodia to have the highest growth, while in Laos, the payments industry is still in the early stages of evolution due to the underdevelopment infrastructure. The focus of foreign investments into the industry is mainly on Vietnam, followed by Myanmar, Cambodia and Laos.

Growing numbers of youth and tech-savvy people who move from rural areas to the city are expected to support payments growth in CLM and Vietnam. The payments ecosystem is still fragmented in most countries. Consumers are likely to use the most popular service in their community but might need to use another service in another location. Most payments solutions are targeted at a mass population, typically those in urban areas. The solutions, therefore, are not relevant for the untapped population beyond the mass market such as the elder generation and rural residents, which may pose a huge market opportunity.

The high unbanked proportion of the population in CLM has compelled many digital payments providers to release user-friendly payments services that enable customers without bank accounts to withdraw, remit, and make payments leveraging the mobile service technology. Moreover, the limited infrastructure remains a challenge for payments providers. Hence, a solution offering innovative payments services without the need for bank accounts becomes more meaningful in providing financial services to the underserved market.

Data-rich payments (e.g., via QR codes) in CLM and Vietnam have become hugely popular. Soon, Near Field Communication (NFC) and biometrics are set to dominate digital payments, and governments and market participants are likely to continue enhancing interoperability. Data security has been a key restraint in all selected countries. Digital payments carry sensitive data over the Internet, so service providers need to assure consumers about platform security and trustworthiness.

Read this paper if you are:

• Considering market expansion into CLMV
• Investing in payment companies operating in CLMV
• Planning to start a business in CLMV where payment strategy would be a key consideration for success

Research Highlights

This research study provides insights into the market and explores the market and investment potential within the payments industry in CLM and Vietnam. It presents a market outlook, regulatory analysis, country prioritization, key investment data, key trends and drivers, market forecast and trends, strategic imperatives, companies to action, and technology trends in the selected countries. It also touches on the payments market in Thailand as a reference and benchmark.

Countries covered include: Cambodia, Laos, Myanmar, Vietnam, and Thailand. Collaborations and partnerships between large financial institutions and FinTech providers are also discussed in this study. Many such partnerships have been established in the market to develop innovative payments solutions and new use cases addressing customer pain points.

Companies mentioned in this study include but are not limited to: Digital Money Myanmar (Wave Money), Telenor, Yoma Bank, PI Pay PLC, Online Mobile Service JSC (MoMo), Vietcom Bank, Vientin Bank, Ascend Money (True Money), OK Dollar, Ooredoo Myanmar, Easy Pay, Ongo, MyPay, 2C2P, MyanPay, Banque Pour Le Commerce Exterieur Lao Public, Kasikorn Bank, Moca Technology and Services JSC, LaoViet Bank QR Pay, KiwiPay, Kapao eWallet, Wing, PayGo, Pi-Pay, Smart Luy, DaraPay, ZaloPay, and Viettel Telecommunications.

Key Issues Addressed

• What is the scope of payments services in CLM and Vietnam? What are the digital payment capabilities in these markets?
• Who are the key market players and their service offerings?
• What is the market potential of the payments industry in CLM and Vietnam? What are the investment opportunities for parties interested to invest?
• What are the risks associated with the implementation of digital payments services? What are the updates on the governing local regulation and standards?
• Why industry best practices and global based digital payments solutions are needed to grow these mobile payment markets to ultimately achieve a cashless society?