The latest publication from Hamburg-based desk market research company yStats.com, “Top Mobile Payment Service Providers in Vietnam 2020 and Their Reaction to the COVID-19 Crisis” provides an insightful overview of mobile payment service providers’ activity in Vietnam. The publication discloses that despite cash still being the king on the market, digital payments are becoming more popular, especially due to the COVID-19 health crisis and the restrictions imposed.
The Vietnamese online payment market is developing during the health crisis
Mobile payment methods in Vietnam lag the penetration of some other countries of the Southeast Asian region; however, they have been spreading in the country, especially after the onset of the coronavirus pandemic. Vietnamese consumers are only gradually letting go of the cash-based payments, and the upward trend in online payments can already be seen quite clearly. According to figures cited in the new yStats.com report, the number of transactions, as well as its value has nearly doubled in July 2020, compared to the same month a year ago. Moreover, in Vietnam digital wallets accounted for almost one-fifth of the total E-Commerce payments even before the pandemic.
Momo, the most popular E-Wallet in Vietnam, gains momentum amid the coronavirus pandemic
Momo, the largest digital wallet in the country in terms of its user base, continues to grow by leaps and bounds in the times of COVID-19. As stated in a recent survey cited in the new yStats.com report, in 2020 the number of its registered users has doubled, in contrast to two years before, so that now Momo has attracted more than a fifth of the Vietnam populations to its platform. Moreover, Momo observed a doubling in the number of Vietnamese merchants connecting to the platform after the outbreak – from February to October 2020. Along with that, Momo has initiated several supporting programs for local businesses and its customers to assist in fighting against the health crisis.
During COVID-19 Vietnamese consumers has been increasingly attracted by the services of the local digital wallets
Another mobile payment service, AirPay benefits from its association with the most popular E-Commerce platform in the country Shopee, which ranks first on AppStore, as well as on Google PlayStore among all E-Commerce platforms in the country. AirPay, furthermore, is the only accepted digital wallet on the Shopee website, a serious advantage for the company. Another widespread E-Wallet, ViettelPay, has also been flourishing on the market, as it underwent an at least six-fold surge in the number of registered users in 2020, compared to two years before, according to a report cited by yStats.com. Along with that, ZaloPay is expected to gain further popularity, as overall interest of the Vietnamese consumers in online payments surges due to the coronavirus pandemic.