AI can reshape Vietnam’s payment landscape

December 05, 2023 | 12:42
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Vietnam's payment landscape is set to undergo significant transformation through the use of generative AI, according to Visa.
AI can reshape Vietnam’s payment landscape
Generative AI will lead to a transformational shift for businesses and consumers, creating a more seamless shopping and payment experience

Visa's Vietnam Client Forum that was held in Hoi An from November 29 to 30 highlighted generative AI and embedded finance as the key payment trends in Vietnam.

Vietnam is in an excellent position to utilise AI to enhance the payment experience for both consumers and businesses, due to its status as the fastest-growing digital economy in Southeast Asia for the second year running. The country's digital economy is expected to continue growing at a compound annual growth rate of 20 per cent.

Generative AI is currently revolutionising numerous industries, including financial services, healthcare, and education. By improving services and productivity, it is transforming business growth strategies. This technology is also set to power many consumer experiences, such as embedded finance.

Embedded finance, which involves integrating payment options into non-financial platforms, is becoming an everyday part of Vietnamese consumers' lives. Whether booking a ride-share service or ordering takeaway food from an app, consumers are benefiting from more seamless customer journeys. Businesses can leverage embedded finance technology to develop integrated solution offerings, simplifying the payment process for merchants.

“At Visa, we recognise the tremendous potential of AI and embedded finance,” said Dung Dang, Visa country manager for Vietnam and Laos.

“We are working with our partners to facilitate increasingly frictionless and secure digital payments in Vietnam. As a trusted brand working with players in the payment ecosystem, Visa is well positioned to shape this space and innovate for the future,” added Dang.

AI can reshape Vietnam’s payment landscape

Visa has been at the forefront of using AI for fraud and payment risk protection for over 30 years. It was the first network to deploy AI-based technology for risk and fraud management, pioneering the use of AI models for payment security. Visa Consulting & Analytics recently launched its new AI Advisory Practice, built to focus on empowering its clients with actionable insights and recommendations to harness the potential of AI, including generative versions.

“The AI revolution is here, and the payments sector is at the forefront of this transformation,” said Manideep Gupta, vice president of Visa Consulting & Analytics in Asia-Pacific.

“With the new AI Advisory practice, Visa is helping clients grow and redefining how they serve their customers through acquisition and engagement,” Gupta continued.

In the financial services industry, banks and financial institutions can navigate the competitive market landscape by using AI to acquire more customers, enhance customer engagement, and optimise operational excellence. AI facilitates quicker credit assessments for consumers and businesses, which is critical in enabling simpler and more reliable underwriting and collections.

The technology can also expedite fraud detection and protection, improve dispute management processes, and automate financial advisory services. This leads to a better user experience and allows the provision of intelligent financial services, such as hyper-personalised recommendations and offers.

Visa’s updated Security Roadmap for Vietnam, launched in April, provides the framework for securing the payment ecosystem in the country through collaborations with various partners. Visa uses AI and data-driven solutions to safeguard both online and physical transactions from potential threats. In October, Visa announced a US$100 million initiative to invest in companies that are focused on generative AI.

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By Thanh Van

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