Visa’s Open Payments Forum Showcases the Future of Payments: Partnerships and Innovation Key in Developing Vietnam’s Digital Payments Landscape
05/09/2024
Visa, a world leader in digital payments, recently hosted its Open Payments Forum, providing a platform for financial institutions, fintechs, payment facilitators, and merchants to showcase best practices and thought leadership. The forum explored the future of payments in Vietnam, highlighting new e-commerce payment technologies, the challenges of increasing adoption of cashless in-store payments, the significance of secure transactions and post-purchase customer experience, and how collaboration between all parties can drive innovation in the digital economy.
The growing need for digitization in Vietnam, fueled by the need for businesses to stay competitive in today's landscape, is fast-tracking the adoption of digital payments in the country. Visa’s Consumer Payment Attitudes 20231 study found that mobile wallets and online payments are gaining traction in Vietnam, closely trailing cash in usage and preference. The study also showed that embedded finance for in-app or website purchases and smart checkout technologies are growing in popularity.
Ms. Dung Dang, Visa Country Manager for Vietnam and Laos, said: “Vietnam's cashless payment revolution presents many opportunities for economic growth and innovation. As consumers and merchants embrace the convenience and security of digital transactions, Visa remains committed to driving this transformative journey towards a cashless future.”
The forum highlighted three key trends shaping the future of payments in Vietnam:
Trend 1: The payments landscape is likely to become more layered and diversified – presenting opportunities that can be seized by all ecosystem players
In envisioning the future of payments, speakers presented best practices for businesses that need to navigate an ever-evolving payment landscape whilst delivering seamless payment experiences for customers. As Vietnam continues its journey in becoming a cashless society, the payment landscape is likely to become more layered and diversified with more participants. This presents dynamic opportunities and challenges, creating an intricate environment for merchants, financial institutions, fintechs, and payment facilitators to navigate.
Trend 2: Customers have higher expectations of their e-commerce experience – and businesses need to meet them
Customer expectations have dynamically shifted, because what used to be about meeting basic expectations for a great user experience and smooth omnichannel journeys has changed. The future of e-commerce will incorporate a wider range of touchpoints, omnipresent purchasing opportunities, along with innovative digital buying experiences and products. Merchants need to offer tailored payment solutions to meet these changing customer expectations, and to keep pace with the cashless and contactless payment trends in Vietnam.
Trend 3: Businesses and consumers need to safeguard themselves against emerging fraud threats
Visa’s 2024 Global eCommerce and Fraud Report2 highlighted that refund/policy abuse and first-party misuse were the most common forms of fraud, impacting nearly half of merchants globally. With the surge in e-commerce, customers now demand secure payments with robust fraud and dispute management strategies in place to maintain trust.
Ms. Lisa Sargent, Head of Merchant Partnerships, Merchant Sales & Acquiring, Visa Regional Southeast Asia, shared: “We are committed to partnering with stakeholders, including directly with merchants, across the payments ecosystem by leveraging Visa capabilities and solutions to manage fraud and optimize the customer experience.”
Visa Acceptance Platform connects merchants to a global ecosystem of payment service providers and technology solutions, and in conjunction with Visa applications such as tokenization and fraud tools, we are continuously building resilient payment solutions. Merchants using Visa Acceptance Solutions saw an average increase in approval rates of 2.97% and a decrease in fraud rates of 70 basis points (bps)3.
As consumers increasingly embrace cashless transactions, Visa remains dedicated to driving innovation, collaboration, and open payments for businesses in Vietnam. With a focus on supporting businesses in navigating the evolving payment landscape, Visa aims to empower them to thrive in today's digital economy.
1 The Visa Consumer Payment Attitudes Study was prepared by CLEAR M&C Saatchi in Oct-Nov 2023, surveyed amongst 6,550 consumers in Singapore, Philippines, Malaysia, Indonesia, Thailand, Vietnam, and Cambodia. The study conducted interviews with 1.000 Vietnamese consumers across the country who are working part or full time with a demographic mix that sought to create a representative mix of ages (18-65), genders and income levels.
2 The 2024 Global eCommerce and Fraud Report was fielded from October to December 2023. In total, 1,166 merchants involved in eCommerce fraud and payment management completed the survey. The survey sample includes merchants based in 37 countries, spanning four major geographic regions, with broad representation across revenue tiers, sales channels, and eCommerce categories. The insights and findings reported convey a detailed and nuanced picture of the state of eCommerce payments and fraud today from the perspective of merchants around the world.
3 VisaNet data analyzes the effectiveness when merchants adopt the Visa Acceptance Platform, from October 2020 to September 2021.
About Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.
About Visa Acceptance Solutions
Visa Acceptance Solutions offers a comprehensive suite of payment acceptance solutions tailored to meet the evolving needs of businesses worldwide. From seamless online transactions to secure in-store payments, Visa provides businesses with the tools and technologies they need to thrive in today's digital economy.