Cash usage rate in Vietnam is declining positively thanks to consumers’ open-minded attitude towards new payment methods.
Non-cash payment has long been identified by Vietnam as an inevitable trend through many important decisions. The digital payment development project for the period 2016 – 2020 has aimed to create a clear change in this payment method, contributing to reducing the ratio of using cash on the total means of payment.
In early 2020, the Prime Minister issued a “National Comprehensive Financial Strategy “, targeting at least 80% of adults with trading accounts at banks or other licensed institutions by the end of the year. 2025, towards the goal of each adult having at least one bank transaction account by 2030.
In fact, cash is still the most popular means of payment in Vietnam today, according to the 2019 Consumer Payment Attitude Survey authorized by Visa in Southeast Asia. However, the bright spot is that while 84% of people in the region choose to use cash, this rate in Vietnam is the lowest in the region when only 7 out of 10 people choose to use cash for payment.
In the coming time, cashless payment in Vietnam is likely to accelerate significantly, because many favorable conditions are converging. The first is the open mind of consumers who are the key decision makers in the process. According to the survey, 74% of them expect to increase cashless payments in the next 12 months. For a group of users with little cash, the main reason is because more and more places are accepting cashless payments. VisaNet, Visa’s advanced payment processing network, points out that, in 2019, the total transaction value of Vietnamese consumers with Visa credit and debit cards increased by 39%, and total transactions increased. 54% compared to 2018.
“Visa’s mission in Vietnam is to provide consumers with the most efficient, convenient and secure payment methods possible, and this goal depends heavily on the level of adoption of new technologies from consumers. I am very happy that the survey results have proved that Vietnamese consumers are embracing the benefits that payment technologies bring to life and using digital payment methods with increasing frequency. “ , Ms. Dang Tuyet Dung, Visa Director in Vietnam and Laos , shared.
In addition, not only open to cashless payment, Vietnamese consumers also have high confidence in the direction of the state and mobile security solutions. Visa survey shows that 73% of Southeast Asian consumers support government initiatives to develop a cashless country, with the Vietnamese people having the highest rate of approval for this policy. (79%) . At the same time, 81% of consumers in the region feel that personal information is secure when making payments with a mobile device. In which, Thailand and Vietnam are the two countries with the highest level of trust from consumers.
In addition, another key factor contributing to the effectiveness in accelerating cashless payments in Vietnam is the development and adoption of new payment technologies at point of sale. Recently, Visa and NextPay, a provider of comprehensive digital transformation solutions for small and medium enterprises (SMEs) in Vietnam, signed a strategic cooperation agreement to promote cashless payments in Vietnam.
In addition, thanks to the positive attitude of consumers and the effective contribution of banks and payment technology companies such as Visa, Vietnam also has a good foundation to implement the State Bank’s telegram No. 02. , issued in early March 2020, on strengthening COVID-19 epidemic prevention and control in the new situation. Specifically, to facilitate consumers and payment points to increase the use of contactless payment in daily transactions, Visa and its partners have launched a promotion program for touch payments with Visa cards at Saigon Co.op, Lotte Mart and Starbucks chains so that consumers can easily pay in this sensitive time.
Starbucks, one of the most successful coffee franchises in Vietnam, has partnered with Visa to promote contactless payments by equipping contactless card readers with rotating racks. According to statistics, four out of ten Visa card transactions at Starbucks Vietnam are currently applying contactless payment technology.
With the trend of consumers turning to online shopping, to help people consume more conveniently and save money, Visa has cooperated with many e-commerce business partners such as Shopee, Tiki, Now, GrabFood, Fahasa … To offer convenient and economical consumer programs with many conveniences when buying, selling and paying online with Visa cards. Continuing in June, there will be more new programs that Visa invests in with partners to provide consumers with added benefits, best support for people’s consumption needs in the period. epidemic prevention.
Visa also requires continuing to strengthen communication, promotion and development of online banking products and services to encourage people to use cashless payment services, minimize cash payments, contribute to limiting the risk of disease transmission. With this policy, cashless payment has more appropriate conditions to speed up.