The e-wallet market is fiercely competitive. The rivalry comes not only from other e-wallet providers but also from formidable opponents like banks. This competition is evident in five key areas.

The most innovative strategies for e-wallet survival, photo Le Toan

Firstly, the gap in payment processing between e-wallets and banks is closing rapidly. Banks have developed their apps quickly and efficiently, resulting in high user growth rates. Secondly, the swift adoption of VietQR has diminished the effectiveness of e-wallet QR codes, forcing e-wallets to transition to VietQR, as seen with Momo and ZaloPay.

Thirdly, a robust ecosystem of payment processing solutions that do not require an e-wallet licence is emerging. Solutions like ATOM, Casso, SePay, HeNo, and GenZi are directly integrated with banks.

Next, as security regulations tighten, the user experience of e-wallets increasingly relies on bank infrastructure. Lastly, banks’ profitability far outstrips that of e-wallets, enabling banks to invest significantly more in their technology.

Amidst this intense competition, e-wallets must carve out their niches. Payoo, for example, is known for its all-in-one payment solution, integrating a merchant ecosystem and Paybill and PayCode systems.

However, this sector is becoming saturated, and Payoo needs additional services for integration. Momo, with the largest user base, is developing into a super app offering a wide range of services.

Its standout market offerings, like movie tickets, highlight its innovative edge. However, banks slowly encroach on its market share.

ZaloPay, second to MoMo in market share, leverages the Zalo ecosystem and offers similar services but needs unique, exclusive features to differentiate itself. SmartPay focuses on SmartPOS and operates as a white-label solution for banks, with significant potential.

VNPAY operates symbiotically with bank apps it has developed, and ShopeePay functions as a feature for Shopee, similar to Moca for Grab. Other e-wallets are mostly inactive or generate negligible revenue.

In this competitive landscape, banks continuously invest in research and feature enhancements for their apps, making it challenging for e-wallets to outpace these giants.

However, e-wallets can pursue viable strategies based on market demand and future trends. Higher automation for financial needs, such as rapid loans, overdrafts, merchant cash advances, and daily wage advances, addresses immediate needs that few banks or financial institutions currently meet.

Integration with bank app ecosystems, like VNPAY’s Taxi/VNShop and UrBox’s loyalty programmes, leverages the massive online user base of over 180 million bank app users to expand their offerings.

Development of hardware and open API integration allows third parties to support banks by optimising costs and reducing operational hardware through solutions like SmartPOS and mPOS.

Processing new payment infrastructures, such as handling systems like VETC and EPASS for new demands like metro systems, provides a competitive edge. For instance, the mandatory VETC/EPASS tags for vehicles create an irreplaceable advantage.

These strategies are also accessible to other tech companies that do not require e-wallet licences, broadening the competitive landscape further. As the market continues to evolve, e-wallets must remain agile and innovative to survive and thrive in this dynamic environment.