Digital payments rise handsomely amid pandemic

The Covid-19 outbreak in Vietnam over the past two years created many difficulties for the economy and negatively affected the lives of many, but also provided a priceless boost to cashless payments.

As of the end of April 2021, the country had over 79 providers of payment services via the internet and 44 providers of payment services via mobile phones, according to the State Bank of Vietnam.

In the first four months of the year, electronic payments via the internet, mobile phones, and QR codes posted remarkable achievements, attracting large numbers of customers.

Compared to the first four months of 2020, transactions via the internet rose 65.9 per cent in volume and 31.2 per cent in value, via mobile phones 86.3 per cent and 123.1 per cent, and via QR codes 95.7 per cent and 181.5 per cent.

Cashless payments also posted rapid growth via the use of e-wallets and contactless payments.

Contactless card payments were most common in the food and beverage category, with 67 per cent of consumers increasing their use in 2020. QR code payments also increased rapidly, especially for everyday transactions such as paying bills (71 per cent), retail payments (58 per cent), and supermarket shopping (57 per cent).

With the pandemic continuing to make its presence felt for some time to come, the gradual shift to electronic payments will minimize the risk of exposure to the disease. Online payments are not only a smart method of consumption but also contribute to promoting Vietnam’s digital economy and digital society, in line with the policy set out by the State.