Smart payments gaining ground in small ticket spending among Vietnamese consumers
New technologies are driving Vietnam towards a cashless society as smart payments find growing adoption among local consumers, especially for small ticket purchases – Visa Study
A cashless future is looking more certain for the Vietnamese society as consumers take up non-cash payments to cover everyday spending. The Consumer Payment Attitudes study by Visa, the world’s leader in digital payments, highlights a growing interest in digital banking and other new payment technologies that would fuel the ascent of a digital economy in Vietnam.
Findings from Visa’s study1 show that digital banking has a strong following among Vietnamese consumers with a majority (77%) aware of digital banking and as many as 31% using these services. The driver of adoption is the convenience of being able to bank any time without having to visit a bank branch. Vietnamese consumers show the strongest preference for services to pay bills (72%) and transfer money to family and friends (67%).
Mrs. Dang Tuyet Dung, Country Manager for Visa Vietnam and Laos shared: “Our Consumer Payment Attitudes study has shown that Vietnamese consumers are increasingly willing to put their trust in new payment services provided by brands they trust. In addition to the safety and security these payment methods provide, they are also valued for the increased control and oversight over personal finances.”
At the same time, there is a growing interest in emerging payment methods. Biometric payments (such as fingerprint scan, voice/facial recognition or retina scan) are a subject of particular interest. Eighty-three percent of local consumers are now aware of the existence of these payment methods and the vast majority are also interested in trying them. Numberless cards are also gradually gaining recognition as 62 percent of consumers are now aware of the existence of this option while as many as 77 percent said they would use them for transactions.
“The COVID-19 pandemic has given a tremendous push for all forms of cashless payments across small ticket categories,” added Mrs. Dang Tuyet Dung. “These trends found extremely fertile grounds among Vietnam’s young and adaptable population, with Gen Z consumers showing significant trust and excitement about new payment services and consumption channels like social commerce.”
Indeed, Gen Z consumers seem to be the beating heart of social commerce, with as many as 85 percent of Gen Z respondents aware of social commerce and 68 percent using social media to read or watch at least three reviews before making a first-time purchase2.
The significant interest shown in digital payments will help to drive adoption and put Vietnam on the path to a cashless society, providing advances in safety, security and convenience.
1 Visa’s Consumer Payment Attitudes Study, prepared by CLEAR in Aug-Sep 2020, surveyed 1,000 people across the country who are working part or full time with a demographic mix that sought to create a representative mix of ages, genders and income levels.
2 “The Influence Of Gen Z”, Forbes, October 2020, https://www.forbes.com/sites/shephyken/2020/10/18/gen-z-your-most-influential-customers/?sh=6b9ce52410ef
About Visa Inc.
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.