Cashless payments record strong growth in H1

June 26, 2025 | 11:12

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In the first half of 2025, cashless payments continued to show strong growth in both the public and private sectors, showing that convenience and experience in payment are increasingly prioritised.

Online payment platform Payoo released its first half 2025 payment trend report on June 24.

Cashless payments record strong growth in H1

In line with a government initiative to promote digital transformation in the public sector, many state agencies and public units have shifted to cashless payments. Various fees and administrative charges at people’s committees, departments, boards, and sectors have all been integrated for online payments.

In particular, public transportation in major cities such as metro and rapid bus services have implemented cashless payment methods.

According to Ho Chi Minh City Department of Transport, the rate of passengers using non-cash payment methods is around 70 per cent on metro routes, indicating a clear shift in urban travel habits and affirming the effectiveness of digital transformation in the public transportation sector.

In the private sector, the food and beverages industry continues to maintain its leading position in electronic payments, thanks to the increasing prevalence of cashless transactions in store chains, coupled with promotions from banks and card organisations.

Other sectors such as retail, supermarkets, and convenience stores have maintained stable growth momentum, driven by the high demand for essential goods and services.

Additionally, the high-end fashion and retail sector has also seen a slight recovery, supported by the resurgence of domestic and international tourism.

Many businesses in the health and beauty sector, such as pharmacies, clinics, and spas, are also experiencing growth in cashless payment transactions, indicating that people are increasingly prioritising investments in both physical and mental wellbeing.

According to statistics from the State Bank of Vietnam, by the end of 2024, the total number of cashless transactions reached 17.7 billion with a value of $11.8 trillion, an increase of 56 per cent in quantity and 32 per cent in value compared to the end of 2023.

Payoo assesses that the increasing shift away from cash transactions has created favourable conditions for many significant reforms, from transparent revenue reporting, automated accounting processes, to the implementation of electronic invoices and more effective tax management.

One of the important steps is the issuance of new tax regulations, where households and individuals with annual turnover of $40,000 or more will no longer be subject to fixed taxes but will be required to use electronic invoices generated from cash registers, with a system directly connected to the tax authorities.

“According to Payoo, the implementation of transparent economic policies such as taxes and invoices as it stands now is seen as an inevitable long-term trend. However, initially, it may cause small business owners and retailers to feel overwhelmed and rushed, so there may be a need for a suitable roadmap and conducive conditions for business owners to adapt gradually,” the report stated.