Visa study finds cash usage dropping in Vietnam as consumers embrace new ways to pay

37 per cent of Vietnamese consumers are using contactless card payments at present

The Visa Consumer Payment Attitudes study found 74 per cent of consumers in Vietnam expect to increase cashless payments in the next 12 months. Of those carrying less cash, the main reason for doing so is that more places are offering cashless payment options.

These trends are reinforced by figures from VisaNet, the company’s payment processing network, which show the value of purchases made by Vietnamese consumers on their Visa credit and debit cards increased 39 per cent on-year, while the number of transactions grew 54 per cent over the same period.

“Visa’s mission in Vietnam has been to offer consumers the most efficient, convenient, and secure forms of payment possible – a goal which relies heavily on the adoption of new technologies,” said Dang Tuyet Dung, Visa country manager for Vietnam and Laos.

“As such, it is incredibly gratifying to see the results of this study, which demonstrate clearly that Vietnamese consumers are broadly recognising the benefits that payment technologies can bring to their lives, and adopting them at increasingly high rates,” Dung noted.

One of the key new technologies that the study looked at was contactless payments – payments where a user simply taps their card, phone, or wearable device against a POS terminal.

At present, 37 per cent of consumers are using contactless card payments in Vietnam, while interestingly, an even higher number (42 per cent) are currently using mobile contactless payments.

Of those that do use contactless card payments, 85 per cent are doing so at least once a week. The study found there is clear room for growth with these new technologies, with four out of five consumers who have not used contactless payments indicating that they are interested in using them.

84 per cent of consumers stated they feel their personal information is safe while making mobile payments, and this high degree of confidence is reflected in the usage figures.

Along with this, mobile contactless payments, QR payments, mobile e-commerce payments all increased on-year over 2018. In particular, 82 per cent said they are using mobile contactless payments at least once a week.

The study also found other new technologies that are garnering interest among consumers with 82 per cent saying they were interested in making biometrically authenticated payments, by using their fingerprint or voice recognition to complete a transaction, while 81 per cent were interested in digital banking.

“Looking ahead, we will continue to bring cutting-edge payment technologies to the Vietnamese market, while working closely with our stakeholders to ensure that we clearly communicate the benefits of these technologies to end users," added Dang Tuyet Dung. "It’s an exciting time for commerce in this market, and we look forward to playing a role in assisting the ongoing modernisation of the Vietnamese economy.”