New technologies are driving Vietnam towards a cashless society as smart payments find growing adoption among local consumers, especially for small ticket purchases, according to a recent study by Visa.
The Vietnamese society continues to move towards a cashless future as consumers utilise non-cash payments to cover everyday spendings.
The Consumer Payment Attitudes study by Visa highlights a growing interest in digital banking and other new payment technologies that could fuel the ascent of a digital economy in Vietnam.
Findings from Visa’s latest study show that digital banking has a strong following among Vietnamese consumers, with the majority (77 per cent) aware of digital banking and as many as 31 per cent using these services.
The driver of the digital adoption is the convenience of banking at any given time without having to visit a bank branch. Vietnamese consumers show the strongest preference for services to pay bills (72 per cent) and transfer money to family and friends (67 per cent).
|Digital banking and smart payments have been increasingly popular among Vietnamese consumers |
“Our Consumer Payment Attitudes study has shown that Vietnamese consumers are increasingly willing to put their trust in new payment services provided by brands they trust. In addition to the safety and security these payment methods provide, they are also valued for the increased control and oversight over personal finances,” said Dang Tuyet Dung, country manager for Visa Vietnam and Laos.
|The significant interest shown in digital payments will help to drive digital adoption and put Vietnam on the path to a cashless society, providing advances in safety, security, and convenience. |
The study shows that there is a growing interest in emerging payment methods. Biometric payments (such as via fingerprint scan, voice and facial recognition, and retina scans) are subjects of particular interest, with 83 per cent of local consumers now aware of their existence and the vast majority interested in trying them.
Numberless cards are also gradually gaining recognition as 62 per cent of consumers are now aware of the existence of this option, while as many as 77 per cent said they would use them for transactions.
“The pandemic has given a tremendous push for all forms of cashless payments across small ticket categories,” added Dang Tuyet Dung. “These trends found extremely fertile grounds among Vietnam’s young and adaptable population, with Gen Z consumers showing significant trust and excitement about new payment services and consumption channels like social commerce.”
As many as 85 per cent of Gen Z respondents said they are aware of social commerce, and 68 per cent are using social media to read and watch at least three reviews before making a first-time purchase.
The significant interest shown in digital payments will help to drive digital adoption and put Vietnam on the path to a cashless society, providing advances in safety, security, and convenience.