Visa and NextPay sign MoU to promote cashless payments in Vietnam

Visa and NextPay will extend the reach of cashless payments across all cities and provinces in Vietnam

Increasing cashless payments is one of the major priorities of the Government of Vietnam in order to accelerate economic growth, digitise the payment infrastructure, and minimise the circulation of cash. In addition to promoting and developing innovative and convenient payment methods for consumers, expanding the network of accepting merchants is one of the key objectives to help develop a cashless society in Vietnam.

Dang Tuyet Dung, Visa country manager for Vietnam and Laos, said that, “mPOS technology allows us to connect with more merchants and cardholders in Vietnam than ever before, which is why we’re so excited to be launching this partnership with NextPay. Small- and medium-sized enterprises (SMEs) make up the vast majority of businesses in Vietnam, and mPOS makes it even easier for these businesses to accept digital payments, allowing more individuals and businesses to participate in the digital economy.”

mPOS, or Mobile Point-of-Sale, uses a small payment card reader and a mobile app, giving merchants similar functionality to a traditional POS system. In recent years, NextPay has been one of the pioneers in developing the mPOS payment network. The company, in co-operation with key banks in Vietnam, has released more than 40,000 of these payment terminals to the market and has become the leading enterprise in helping to develop a network of new merchants. NextPay has set a goal of further expanding to a community of 300,000 merchants in Vietnam by 2023.

mPOS (Mobile Point-of-Sale) uses a small payment card reader and a mobile app, giving merchants similar functionality to a traditional POS system

According to the MoU, Visa will provide consultancy on business strategy, technological support, and share its practical global experience in implementing and developing e-payments, helping NextPay to deploy appropriate plans and strategies for the Vietnamese market. The two parties will also co-operate in branding and other actions to encourage customers to use e-payments instead of cash.

The mPOS systems can also accept contactless payments, which allow consumers to simply tap their card, phone, or wearable against a terminal to pay. According to the Visa Consumer Payment Attitudes study, 37 per cent of Vietnamese consumers said they are using contactless card payments, while 42 per cent are currently using mobile contactless payments.

Nguyen Huu Tuat, NextPay CEO, said that, “Having the chance to co-operate with Visa is a great honour for NextPay. By working with Visa, the largest payment network in the world, NextPay hopes to contribute to the transformation of the payment market in Vietnam, bringing ultimate value to customers and businesses, especially SMEs which have not yet deployed electronic payments.”

NextPay and Visa will be working together on developing economic potential across 63 provinces and cities nationwide by providing the market with innovative payment methods and services. The comprehensive co-operation between NextPay and Visa will be of great significance in the context of rapid evolution of digital payments, promising to bring the most optimal payment solutions for a cashless society in Vietnam and together aiming for digital transformation.