Vietnam Cashless Payments and BNPL Market

Vietnam Cashless Payments and BNPL Market valued at USD 47 billion, driven by digital adoption, e-commerce growth, and government initiatives for cashless transactions.

The Vietnam Cashless Payments and BNPL Market is valued at approximately USD 47 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of digital payment solutions, a surge in e-commerce activities, and a growing preference for convenience among consumers. The rise of fintech companies and government initiatives to promote cashless transactions have also significantly contributed to the market's expansion. Recent trends highlight the rapid expansion of mobile payments, QR code standardization, and the integration of super-app ecosystems that bundle payments, shopping, and services, further accelerating market penetration.

Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their high population density, robust economic activities, and advanced digital infrastructure. These urban centers are witnessing a rapid increase in smartphone penetration and internet connectivity, which further fuels the demand for cashless payment solutions and BNPL services. The adoption of QR code payments and mobile wallets is especially pronounced in these cities, supported by merchant onboarding and public transport digitization.

In 2023, the Vietnamese government implemented a regulatory framework aimed at enhancing the security and efficiency of cashless transactions. This framework is anchored by Circular No. 19/2022/TT-NHNN issued by the State Bank of Vietnam, which sets out requirements for electronic payment security, consumer data protection, and transparency in BNPL services. The regulation mandates biometric authentication for mobile payments and requires licensed fintechs to comply with risk management and reporting standards, ensuring that both consumers and service providers adhere to best practices in financial transactions.

Vietnam Cashless Payments and BNPL Market Segmentation

By Type:

This segmentation includes various forms of cashless payment solutions and BNPL services that cater to different consumer needs and preferences. The market is characterized by a diverse range of offerings, including digital wallets, BNPL services, mobile payment solutions, QR code payments, contactless cards, online banking, and peer-to-peer transfers. Each sub-segment plays a crucial role in shaping the overall landscape of cashless transactions in Vietnam, with QR code payments and digital wallets leading adoption due to their convenience and widespread merchant acceptance.

By End-User:

This segmentation focuses on the various consumer groups utilizing cashless payment solutions and BNPL services. The end-users range from retail consumers to small and medium enterprises (SMEs) and large corporations, each with distinct needs and preferences that drive their adoption of cashless transactions. Retail consumers represent the largest segment, driven by e-commerce growth and mobile wallet adoption, while SMEs and large corporations leverage these solutions for operational efficiency and improved customer experience.

Vietnam Cashless Payments and BNPL Market Competitive Landscape

The Vietnam Cashless Payments and BNPL Market is characterized by a dynamic mix of regional and international players. Leading participants such as MoMo (M_Service JSC), ZaloPay (VNG Corporation), VNPay (Vietnam Payment Solution JSC), TikiPay (Tiki Corporation), GrabPay by Moca (Moca Technology and Service JSC, in partnership with Grab), ShopeePay (AirPay JSC, part of Sea Group), Payoo (VietUnion Online Services JSC), FPT Pay (FPT Corporation), Home Credit Vietnam, Kredivo Vietnam, Trusting Social, ViettelPay (Viettel Group), BankPlus (Viettel Group in partnership with Vietnamese banks), Easy Credit (EVN Finance JSC), FE Credit (VPBank Finance Company Limited) contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Cashless Payments and BNPL Market Industry Analysis

Growth Drivers

Increasing Smartphone Penetration:

As of future, Vietnam's smartphone penetration rate is projected to reach 73%, with approximately 72 million smartphone users. This surge facilitates access to cashless payment platforms, enabling consumers to engage in digital transactions seamlessly. The World Bank reports that mobile internet usage has increased significantly in recent years, further driving the adoption of cashless solutions. This trend is crucial for enhancing the overall cashless payment ecosystem in Vietnam.

Rising E-commerce Adoption:

Vietnam's e-commerce market is expected to exceed over USD 20 billion, reflecting robust growth driven by a burgeoning middle class and increased internet accessibility. The Vietnam E-commerce Association indicates that 70% of online shoppers prefer cashless payment methods, highlighting a significant shift towards digital transactions. This trend is pivotal for the expansion of cashless payment solutions and BNPL services in the country.

Government Initiatives Promoting Cashless Transactions:

The Vietnamese government aims to increase cashless transactions to 50% of total payments in future, supported by initiatives such as the National Payment Strategy. In future, the government allocated funds to enhance digital payment infrastructure and promote financial inclusion. These efforts are expected to bolster consumer confidence in cashless transactions, driving further adoption of BNPL options and digital wallets across the nation.

Market Challenges

Limited Financial Literacy Among Consumers:

Approximately 30% of Vietnamese adults are considered financially literate, which poses a significant barrier to the adoption of cashless payment solutions. The Asian Development Bank reports that only about 30% of the population understands basic financial concepts, hindering their ability to navigate digital payment platforms effectively. This challenge can slow the growth of cashless transactions and BNPL services, as consumers may be hesitant to engage with unfamiliar financial products.

Regulatory Hurdles and Compliance Issues:

The regulatory landscape for cashless payments in Vietnam is complex, with multiple agencies overseeing compliance. The government has introduced regulations requiring payment service providers to meet stringent security standards, leading to increased operational costs for companies and potentially stifling innovation and market entry for new players. Navigating these regulatory challenges remains a significant hurdle for the cashless payments and BNPL market.

Vietnam Cashless Payments and BNPL Market Future Outlook

The future of Vietnam's cashless payments and BNPL market appears promising, driven by technological advancements and evolving consumer preferences. As digital wallets gain traction, the integration of AI in payment processing is expected to enhance user experience and security. Additionally, the rise of contactless payment methods will likely reshape consumer behavior, making transactions more convenient. With ongoing government support and increasing investment in fintech, the market is poised for significant growth, fostering a more inclusive financial ecosystem.

Market Opportunities

Expansion of Digital Wallets:

The digital wallet market in Vietnam is estimated to have over 30 million users, presenting an opportunity for payment service providers to innovate and enhance their offerings, catering to the increasing demand for seamless digital transactions. Companies that capitalize on this trend can establish a strong foothold in the cashless payments landscape.

Partnerships with E-commerce Platforms:

Collaborating with e-commerce platforms can create synergies that enhance the cashless payment experience. With e-commerce sales estimated at over USD 20 billion, strategic partnerships can drive user engagement and increase transaction volumes. Payment providers that align with popular e-commerce sites can leverage this growth to expand their market presence and improve service offerings.