COVID-19 gives boost to e-wallet market

The impact of COVID-19 in Vietnam has spurred more than ever the growth of cashless payment, including electronic purses.

The impact of COVID-19 in Vietnam has spurred more than ever the growth of cashless payment, including electronic purses.

According to a Visa survey, amid the pandemic, Vietnamese users are gradually prioritising using e-wallets and contactless payments. It showed that 57 percent of respondents have up to three e-wallet apps, while 55 percent prefer an app that can perform all transactions. A large number of e-wallets, such as MoMo, Moca, ZaloPay, Viettel Pay, Payoo, ShopeePay, and most recently MobiFone Pay, are available in the market, offering many incentives to attract customers, making the market more bustling than ever.

COVID-19-induced contact and travel restrictions have caused users to switch from brick-and-mortar stores to online channels. E-wallets have seized the opportunity to massively launch their promotion programmes, hence a higher payment rate.

Latest figures from the State Bank of Vietnam showed that during the early months of 2021, more than 200 million transactions worth some 77.7 trillion VND (3.38 billion USD) were made through e-wallets. The convenience of e-wallets in payment is the reason for many banks to engage in this service segment.

According to AppotaPay's forecast, the cashless payment market will grow strongly in the next three to five years. In particular, mobile money and e-wallets will be key services to help non-cash payments expand its share in the Vietnamese market.