According to the study, 56 per cent of Vietnamese respondents surveyed are now carrying less physical cash than they did a year ago, signaling a progressive mindset toward embracing new financial technologies. Particularly, young consumers are playing a pioneering role in the shift towards cashless payment, with 89 per cent of the surveyed having successfully adopted cashless methods.

Vietnamese consumers are carrying less cash than they did a year ago. (Photo: tuoitre.vn)

Visa also delves into the prevailing trends that shape the non-cash economy in Vietnam, including the ascendance of mobile wallets. It said Vietnam is among the top Southeast Asian markets with rapid adoption of mobile wallets as the preferred method for making payments, contributing to accelerating the growth of digital finance. The country is poised to emerge as one of the regional leaders in mobile finance as four in every five Vietnamese consumers utilize mobile wallets.

Meanwhile, real-time payments (RTPs) have gained significant momentum in Vietnam, an illustration of the nation’s embrace of cutting-edge financial technologies. The RTPs offer unparalleled convenience and efficiency, driving further digitization of the economy. In Vietnam, RTPs are growing in popularity, with at least two in five consumers having used them. Application of the RTPs has been personified, comprising cross-border transactions, peer-to-peer transfers, merchant/retailer payments, and bill payments.

Furthermore, buy now pay later (BNPL) is a popular service availed by Vietnamese consumers, offering flexible payment options and driving consumer engagement. Visa's strategic partnerships with leading Vietnamese retailers for Visa Instalment Solutions demonstrate the transformative impact of such solutions in fostering financial inclusion and driving business growth.

Credit cards, although less utilized for wallet top-ups and funding, are the preferred choice for BNPL plans in Vietnam. Easy-to-use apps, free vouchers, rewards points, and the ease of tracking payments were the key drivers for the uptake of BNPL offers.

Vietnam's cashless payment revolution presents unprecedented opportunities for economic growth and innovation, unlocking opportunities for consumers and businesses alike in the continued shift to a cashless society.

Visa Country Manager for Vietnam and Laos Dang Tuyet Dung said Visa remains committed to driving innovation and enhancing digital payment experiences for consumers.

The findings from the Visa study affirm the growing trend towards contactless transactions, exemplified by a significant 53 per cent increase in contactless transactions made on Visa cards, a 19 per cent surge in purchases made on Visa cards, along a substantial rise in the total value of cross-border transactions, she added.

Statistics from the State Bank of Vietnam (SBV) revealed that non-cash payment and digital banking activities have shown positive results. As of the end of 2023, the number of individual payment accounts reached more than 182.88 million, up 21.8 per cent year-on-year.

In January 2024, non-cash transactions surged 63.3 per cent in volume and 41.45 per cent in value as compared to the same time last year. Meanwhile, transactions through the internet rose 57.85 per cent in volume and 32.43 per cent in value, and QR codes shot up 892.95 per cent in volume and over 1,062 per cent in value.

The SBV has encouraged credit institutions to carry out digitalization, and promote cooperation with different sectors to form and expand the digital ecosystem while completing legal framework, mechanisms, and policies on non-cash payment.