Visa and SmartPay announced a partnership on May 17 that will empower micro, small, and medium-sized enterprises (MSMEs) with the essential tools that they need to compete in the burgeoning digital payment era.
Attending the partnership signing ceremony were Jeni Mundy, Visa's global head of Merchant Sales and Acquiring, and SmartPay’s chairman Marek Forysiak.
“As I connect with our partners here in Vietnam, I’m delighted to see their commitment to expanding payment options while enabling consumers to benefit from a wider range of choices and convenient digital solutions,” Mundy said.
Mundy’s visit to Vietnam underscores the importance of the fast-growing Southeast Asian market as Visa seeks to strengthen its commitment to widen the adoption of digital payments, enhance the digital economy, and expand further cooperation opportunities in the future.
According to SmartPay’s chairman Marek Forysiak, a lack of infrastructure, especially point of sale (POS) terminals, is becoming a profound challenge for MSMEs to keep up with the digital transformation taking place in Vietnam.
Demand for POS devices in the second quarter of 2022 was about 1.2 million devices, and SmartPay’s goal in the next three years is to provide 325,000 of these devices, or nearly 30 per cent of the total market share.
Speaking at the event, Forysiak said, “This partnership is part of a broader effort by Visa and SmartPay to make cashless payments more accessible in Vietnam by expanding the number of merchants equipped to accept non-cash payments, especially Visa card payments. It will give merchants payment solutions that can boost their competitiveness in the digital era.”
While cash use is still widespread in Vietnam, consumers are increasingly turning to cashless payment options. According to the Visa Consumer Payment Attitudes Study 2022, cash usage has fallen since 2021 while 89 per cent of respondents said they use mobile wallets and 85 per cent use credit and debit cards.
According to the study's findings, 79 per cent of consumers expressed dissatisfaction with the limited payment method options available at small retailers, while 74 per cent of respondents emphasised the urgent need for small retailers to embrace a wider array of digital payment methods.
What is happening in Vietnam is part of a global trend towards the digitalisation of payments. Visa’s Global Back to Business study released last year showed 73 per cent of small businesses surveyed said accepting new forms of digital payments was fundamental to growth.
|Dung Dang, Visa country manager for Vietnam and Laos |
Furthermore, 59 per cent of small businesses said they already, or plan to, use solely digital payments within the next two years, while 41 per cent of consumers said the same.
“Now, small businesses can build on this foundation of digital capabilities to find new growth and thrive,” Dung Dang, Visa country manager for Vietnam and Laos, said. “Payments are not just about completing a sale, but rather, about creating a convenient and secure experience that reflects a company’s brand across platforms and benefits both the business and the consumer.”
Visa has spearheaded a range of impactful initiatives aimed at supporting small businesses that embrace digital payments and increase their participation in the digital economy. Notably, Visa has already surpassed the halfway mark of its objective to digitise 50 million MSMEs across the globe.
SmartPay provides cashless payment solutions such as SmartQR and SmartPOS, business management solutions such as SmartShop, and integrates OPOS sales management software on SmartPOS devices. By the end of 2022, SmartPay had actively serviced more than 700,000 merchants and a community of more than 40 million users nationwide.
By Thai An