Mastercard at the forefront of Vietnam's new cashless society

What trends are shaping the digital transformation of the banking sector in Vietnam?

Vietnam has been experiencing rapid digital transformation in the banking sector, accelerating the shift to cashless payments. Consumers have shown above-average enthusiasm for adopting digital payments compared to other regional markets, reflecting the country’s progress in building a digital-first economy.

According to the State Bank of Vietnam (SBV), in the first seven months of 2024, non-cash transactions increased by more than 58 per cent in volume and 35 per cent in value on-year. QR codes led the way, with a significant jump of nearly 107 per cent in transaction volume and 106 per cent in value during the same period.

Account-to-account transfers, e-wallets, and mobile wallets are also gaining traction, spurred by the recent launches of Google Pay and Apple Pay, which have made contactless payments more accessible and convenient. Merchants and businesses are responding by integrating diverse payment solutions to meet evolving customer expectations. In January last year, the number of point-of-sale terminals across Vietnam had risen by 33 per cent on-year, reflecting a broader push for digital acceptance across sectors.

Looking ahead, Vietnamese consumers’ enthusiasm for greater convenience and security will continue to drive the adoption of mobile payments, digital wallets, and biometric authentication. This growth is fostering a cashless ecosystem that supports Vietnam’s broader digital ambitions.

What strategies is Mastercard implementing to support Vietnam's transition to a cashless society?

We recognise that transitioning to a cashless society requires a holistic strategy that goes beyond technology to address structural, social, and economic barriers. We’ve developed best practices by focusing on infrastructure, inclusion, education, security, and partnerships.

• Expanding digital payment acceptance: In Vietnam, Mastercard has been working closely with the SBV, banks, and fintechs to expand cashless acceptance. We have partnered with the National Payment Corporation of Vietnam (NAPAS) and nine partner banks to launch a co-badged card, allowing NAPAS cardholders to make payments outside the country at over 130 million Mastercard acceptance points around the world. Through partnerships like with SmartPay, we’ve also helped 600,000 micro, small, and medium-sized businesses (MSMEs) accept digital payments via Mastercard QR, providing them with affordable payment solutions.
• Encouraging financial inclusion: Despite progress, nearly a quarter of Vietnamese adults remain unbanked, so providing access to basic financial services is crucial. We collaborate with partners to offer prepaid cards, mobile wallets, and contactless payment solutions, making financial services more accessible to underserved communities and bringing them into the formal economy.

• Establishing consumer education: Lack of knowledge and understanding of emerging payment technologies among consumers has led to concerns about safety, security and ease of use, hindering cashless adoptions. Mastercard works with government, financial institutions, and businesses to actively engage in educational initiatives such as Vietnam Cashless Day and Vietnam Card Day to raise awareness of the benefits of cashless payments and address

• Ensuring robust security: Security is a top priority in the digital payment ecosystem. Mastercard has made significant investments in technologies like tokenisation, biometrics, and AI to protect consumers and businesses from fraud. Solutions like Decision Intelligence use AI to analyse transactions in real-time, helping financial institutions enhance fraud detection and improve accuracy in approving payments.
• Fostering partnerships to scale impact: We recognise that no single entity can achieve a cashless society alone. Collaboration is key. In Vietnam, Mastercard has been a dedicated partner to the government on initiatives such as the National Financial Inclusion Strategy and enabling digital payment solutions in public services and transport.

By addressing these barriers through infrastructure, inclusion, education, security, and partnerships, we remain focused on empowering businesses and consumers to embrace digital payments, driving Vietnam’s cashless agenda forward in an inclusive and sustainable manner.

Can you discuss Mastercard's partnerships aimed at promoting cashless payments in Vietnam in more detail?

Mastercard has been at the forefront of driving digital payment acceptance in Vietnam through its strategic partnerships, bringing global expertise and innovative solutions to the local market. These collaborations are critical to accelerating cashless adoption and enhancing the digital payment landscape for both consumers and businesses.

One of the most notable initiatives is our collaboration with NAPAS and the nine local banks to launch Vietnam’s first co-badged card. This collaboration comes at a time when international travel and cross-border payments among Vietnamese consumers are rapidly evolving. The co-badged card featuring contactless payment capabilities will provide consumers with a seamless, secure, and convenient payment experience online and at over 130 million Mastercard acceptance points worldwide.

Another is our commitment to enhancing the urban travel experience through smart payment systems. In collaboration with Vietbank, Vidiva, and Ho Chi Minh City Urban Railway No.1, Mastercard has developed an integrated payment system for public transportation in Ho Chi Minh City. Passengers can now use domestic and international cards or e-wallets to pay for their commute, creating a cashless, frictionless travel experience across the city’s transit network. This initiative is paving the way for a more connected and efficient urban mobility system, supporting Vietnam’s push towards smart cities and digital transformation.

These efforts have been crucial in accelerating cashless adoption for businesses and consumers alike, helping to shape a more digital and inclusive economy in Vietnam. We remain focused on bringing best-in-class global solutions to Vietnam to support its cashless agenda and foster inclusive growth for all.

What initiatives is Mastercard implementing in Vietnam to encourage financial inclusion and support underserved communities?

We believe that inclusive and sustainable economic growth is essential for building a resilient digital economy where everyone can prosper. In Vietnam, Mastercard plays a pivotal role in shaping the financial landscape by empowering individuals, businesses, and communities to participate equitably in the digital economy. Our global commitment is to connect one billion people to the digital economy by the end of 2025, and Vietnam is at the heart of this mission.

The country’s rapid economic transformation and government-led cashless agenda make it a key market for Mastercard to drive financial inclusion and inclusive growth through innovative payment solutions and strategic partnerships.

We recognise that true progress happens when economic growth benefits everyone – particularly underserved communities, small businesses, and women entrepreneurs. To this end, we’ve launched several impactful initiatives in Vietnam:

• Ignite Initiative: In partnership with CARE International in Vietnam, VPBank, WISE, and Canal Circle, we have supported 50,000 women entrepreneurs in building financial resilience and realising their growth potential. This initiative focuses on providing access to digital financial tools, mentorship, and training, helping women-led businesses thrive in a digital-first economy.
• Digital Financial Tools for MSMEs: Small firms form the backbone of Vietnam’s economy. Mastercard is committed to providing affordable digital payment solutions, enabling these businesses to accept cashless payments, improve their financial stability, and unlock growth opportunities.

Our role in Vietnam’s financial landscape goes beyond payments. We aim to build a cashless society that fosters inclusive prosperity, promotes sustainability, and reduces the digital divide.

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