The COVID-19 pandemic has pushed up demand for cashless payment and significantly contributed to changing the habit of using cash to cashless payment methods in Vietnam.
According to the statistics of State Bank of Vietnam, banking transactions conducted online increased by 5.9 percent in number and 28.4 percent in value in the first three months of this year over the same period last year.
Mobile banking transactions rose by 78 percent in number and 103 percent in value while via QR code by 83 percent and 146 percent, respectively.
Overall, cashless payment transactions jumped by 344.3 percent in number and 96.1 percent in value in 2020 against the previous year.
A recent survey by Visa also revealed strong increases in the use of e-wallets, contactless payment via cards and smartphones and QR Code. The year-on-year growth rate of the total e-commerce transaction value in the first quarter of 2021 rose by 5.5 times compared to the fourth quarter of 2020.
Notably, contactless card payments were used the most for food and catering services. Payments via QR Code strongly increased in the pandemic, especially in bill payment, retail shopping and at supermarkets.
“There was a significant change in the shopping and payment habits of Vietnamese consumers since the outbreak of the COVID-19 pandemic. Consumers were seeking safer and more convenient shopping experiences” said Bryan Carroll, Founder and CEO, TNEX Digital Bank.
“It is security and convenience that are promoting the switching from cash to digital payment methods” he said.
Still, COVID-19 was an unexpected catalyst to make payment habits and behavior change faster. In the long term, Vietnam has set a goal of digitising the banking industry.
Under the banking digital transformation plan to 2025 with a vision to 2030, the central bank targeted that at least 50 percent of adults would use electronic payment services and at least 70 percent of transactions would be conducted via digital channels. By 2030, the percentages were expected to be at least 80 percent.
Deputy Governor of the State Bank of Vietnam Nguyen Kim Anh said that about 95 percent of credit institutions in Vietnam were implementing digital transformation strategies.
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech event will bring together influential executives from around the world. Live from London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
With keynote addresses from global leaders, dynamic roundtable discussions, and extensive networking opportunities, FinTech & InsurTech 2021 will expand your network, deliver insight, and enhance your organisation’s reach. Speakers include Colin Payne, VP & NextGen FS Global Lead at Capgemini; Dipu KV, President and Head of Operations & CX at Bajaj Allianz General Insurance Company; Bryan Carroll, CEO at TNEX; and Lucy Demery, Managing Director at Barclays.
Each week, from now until the event, the organizer will be announcing four new names who are set to grace our physical or virtual stage, prepared to share their knowledge and insight with attendees.
Here’s the first batch.
Founder and CEO, TNEX Digital Bank
As the CEO of TNEX, the first Vietnamese bank to offer free everyday banking for individuals and businesses, Bryan Carroll is no stranger to streamlining operations. To serve Vietnam’s 30 million Gen Z consumers and 4 million small businesses, he combined financial and lifestyle needs into one app—winning the Global Economics Awards 2021 for “Best New Digital Bank”.
Over the course of his career, Carroll has excelled in digital-only banking, data science, enterprise architecture, and digital marketing. “Bryan’s strategic vision, energy, and ability to connect the dots [are] invaluable”, said Giles Newsome, CEO at iConnect101. We don’t doubt it. Carroll has worked successfully with countless startups, fintechs, VCs, and banks across Europe, Russia, the Middle East, Asia, and North America.