Electronic payment continues to flourish in Vietnam

The trend of electronic and non-cash payments in the Vietnamese economy in 2023 continued to record growth of 52.35 percent in volume over the same period last year.

Data released late last week by the State Bank of Vietnam (SBV) showed payment transactions via QR code are increasingly popular in Vietnam while ATM transactions are decreasing in both quantity and value.

Accordingly, transactions via Internet channels in the first five months of 2023 increased by 75.54 percent in quantity and 1.77 percent in value, and the rise for transactions via mobile channels rose by 64.26 percent in quantity and 7.65 percent in quantity. Notably, transactions via QR code surged by 151.14 percent and 30.41 percent in volume and value, while transactions via POS also increased by 30.35 percent and 27.27 percent in volume and value, respectively.

Meanwhile, transactions made via ATM in the period decreased by 4.62 percent in quantity and 6.43 percent in value, reflecting the trend of shifting to electronic and non-cash payments.

To promote the trend of electronic and non-cash payment, the SBV has continued to streamline the legal framework for payment activities and bank digital transformation. At commercial banks, investment activities for digital transformation and digital payment have been also increasingly promoted with updated applications of new versions.

According to the SBV, some commercial banks have so far provided loans electronically and approved online lending documents.

Pham Anh Tuan, Director of the SBV’s Payment Department, said the SBV had completed the amendment of Circular 39, which supplements lending activities through the use of electronic means, which will be issued in the near future.

Though appearing many years ago, payments by QR code have become more popular recently in Việt Nam, penetrating businesses around the country - seemingly all at once.

This change is partly the result of the Government’s efforts to promote digital transformation and cashless payments over the past few years and partly due to changes in consumers’ shopping habits.

QR payments are receiving the support of the whole of society. Banks and fintech organisations are actively participating in market expansion and increasing payment acceptance points. Most customers using the service are modern users who are more adaptable and easily accept new things.

Due to low investment costs and quick implementation, QR has quickly occupied a growing position in the global payments sector, and this success can be most clearly seen in China, where it has gradually replaced most traditional payment methods.

Source: VNS