E-wallet services in fierce competition for Vietnamese consumers

11:09 | 02/07/2018 Finance - Banking

(VEN) - Electronic wallet (e-wallet) services are becoming more popular in Vietnam, with around 20 e-wallet apps on the market currently, such as Vi Viet, ZaloPay, 123pay, Baokim, Nganluong, Bankplus, VTCPay, Timo, MoMo, Payoo, MobiVi, and Wepay.

e wallet services in fierce competition for vietnamese consumers

Flourishing

According to the State Bank of Vietnam, the value of e-wallet transactions in 2017 reached more than VND53.1 trillion, an increase of 64 percent compared to the previous year. As of date, the State Bank of Vietnam has licensed more than 20 e-wallet apps.

By May 2018, the Vi Viet app had 2.2 million users and over 19,000 points accepting payments nationwide. The ZaloPay e-wallet, developed by VNG Corporation, aims to open about 1,000 new points of sale in 2018. ZaloPay enables electronic payment of bills such as electricity, water, internet and TV as well as money transfer via QR code and connection with bank accounts for cash withdrawals or recharge.

E-wallets have provided services that compete with banks’ internet and mobile banking services and therefore domestic banks are rapidly entering this market. Maritime Bank and Sacombank have launched QR code payments, which can be used at shops and restaurants.

The e-wallet provides varied integrated services, such as buying movie tickets, air tickets, taking up consumer loans, and insurance policies.

Expanding market share

Vietnam’s e-wallet market is becoming fiercely competitive with the participation of many foreign names such as Samsung Pay, Alipay and Amazon, leading domestic service providers to expand cooperation with major partners to gain market share.

For example, M-Service has partnered with Shinhan Bank Vietnam to link Shinhan’s customer account numbers with the MoMo e-wallet.

Vi Mo Technology Joint Stock Company has cooperated with SASCO to launch electronic payment services for Asian tourists traveling in Vietnam. The service allows travelers to use WeChat Pay e-wallet paid for in Vietnamese dong at SASCO’s booths at the Tan Son Nhat International Airport in Ho Chi Minh City via QR code scanning on mobile phones.

Prime Minister Nguyen Xuan Phuc approved a project for the development of non-cash payments in Vietnam in the

2016-2020 period, with a target of reducing the ratio of cash transactions to below 10 percent. This means that e-

payments, including e-wallets hold great development potential.

Ngoc Thao