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In recent years, Vietnam has witnessed a remarkable surge in digital payment transactions, reflecting a significant shift away from traditional cash-based transactions. According to the latest data released by the State Bank of Vietnam (SBV), non-cash payment transactions surged by 63.3% in volume and 41.45% in value in January compared to the same period last year, underscoring the country’s accelerating adoption of fintech and digital banking solutions.
The figures unveiled by the central bank paint a vivid picture of this transformation. Internet banking transactions saw a robust increase of 57.85% in volume and 32.43% in value, while mobile banking transactions experienced a staggering growth of 68.54% in volume and 41.12% in value. Particularly noteworthy is the meteoric rise of QR code payments, which witnessed an astounding surge of 892.95% in volume and 1,062.01% in value.
Conversely, traditional point-of-sale (POS) transactions experienced a more modest uptick of 16.87% in volume and 13.65% in value, while transactions via automated teller machines (ATM) saw a slight decline of 15.14% and 18.76% in volume and value, respectively.
These statistics underscore a clear trend towards embracing cashless payments, driven by the digitalisation initiatives championed by the SBV. Encouraging credit institutions to embark on digital transformation journeys and fostering collaboration across sectors to expand the digital ecosystem have been pivotal strategies. The focus remains on delivering customer-centric products and services that offer seamless and personalised transaction experiences.
The digitalisation of basic banking services, such as deposits, account opening, e-wallet usage, and money transfers, has witnessed significant traction. Many Vietnamese banks now witness over 90% of their transactions conducted through digital channels, reflecting the growing preference for convenient and efficient digital banking solutions.
The advent of electronic Know Your Customer (eKYC) processes has further streamlined account opening procedures, with approximately 40 banks and foreign bank branches opening 35 million accounts through this digital process by the end of 2023. Moreover, the proliferation of individual payment accounts, which surpassed 182.88 million in 2023, demonstrates a robust appetite for non-cash payment methods.
A survey conducted by a company revealed a growing acceptance of digital payments among merchants, with 43.8% accepting bank transfers and 15.3% embracing VietQR codes for transactions. Banks have responded by offering tailored support programmes for merchants, including QR code creation and distribution initiatives, alongside collaborating with software partners to introduce innovative functionalities aimed at incentivising cashless transactions.
The adoption of QR code payments has witnessed exponential growth, with payments via VietQR codes doubling to over 100 million transactions per month, as reported by the National Payment Corporation of Vietnam (Napas). Additionally, utility bill payments through QR codes have surged, indicating diversification of use cases for this payment method.
Notably, digital payment providers are intensifying efforts to enhance the security and convenience of online transactions. The integration of advanced technologies such as biometric authentication and AI-driven solutions promises to further bolster consumer confidence in digital payments.
Vietnam is prioritising cybersecurity as it aims to fortify its e-commerce and digital transaction landscape, ensuring robust security measures for the burgeoning digital economy.
The nation has experienced success in cybersecurity, as reported by OpenGov Asia, with a significant drop in cyber attacks. In February, there were 862 reported incidents, indicating a 9.3% decrease from January and a notable 48.9% decline compared to the same period last year.
Looking ahead, Vietnam is poised to continue its pursuit of cutting-edge technologies to propel the digital economy forward and meet evolving socio-economic demands. With a concerted focus on innovation and collaboration, Vietnam is well-positioned to emerge as a regional leader in the realm of cashless payments, driving inclusive growth and fostering financial inclusion across the nation.