The use of cashless payments in Vietnam as stated by the country’s Ministry of Finance and central bank has seen a sharp increase over the years.
The boom in mobile payments through e-wallets is clear with the customer base of payment app ‘Momo’ growing tenfold over time. Last year, the mobile payments (and the convenience of not going through an intermediary bank) recorded a surge of 210% in value and 198% in volume.Cashless payments come with a lot of benefits such as time and effort, savings, and
On June 16 (Cashless Day 2020), Phạm Tiến Dũng, the director of State Bank of Vietnam (SBV), said that the use of cash for payments has seen a decline over the years. This year, the increase in the number of 3G and 4G subscribers is expected to cross 80 million in the country.
The developments in mobile technology indicates to the fact that e-wallets and digital payments with QR codes on smartphones will be a dominant trend in the future. The take-up of cashless payments and systems is based upon individuals having bank accounts. Last year, Vietnam had over 88.5m personal bank accounts.
On May 28, Prime Minister of Vietnam Nguyen Xuan Phuc had issued a directive on promoting cashless payments in the country.In the directive, he instructed the State Bank of Vietnam to facilitate and strengthen the legal framework for cashless and electronic payments, and to set up the automated clearing house (ACH) system, for retail transactions by Dec. 15.