Executive Summary

The Vietnam e-wallet market has witnessed remarkable growth over the past few years, driven by factors such as the increasing smartphone penetration, rising internet connectivity, and the government’s efforts to promote a cashless society. The market has become highly competitive, with numerous players offering a wide range of e-wallet services to cater to the diverse needs of consumers.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The Vietnam e-wallet market is expected to continue its robust growth trajectory in the coming years, driven by factors such as the government’s push for digitalization, the young and tech-savvy population, and the increasing acceptance of e-commerce.
• Mobile payments dominate the e-wallet market in Vietnam, with a majority of transactions being conducted through smartphones. The convenience, ease of use, and accessibility of mobile devices have fueled the adoption of e-wallets among the Vietnamese population.
• The e-wallet market in Vietnam is characterized by intense competition, with both domestic and international players vying for market share. Key players in the market include MoMo, ZaloPay, GrabPay, and AirPay, among others.
• The government’s initiatives to promote a cashless society, such as the implementation of QR code payment systems and the reduction of transaction fees for digital payments, have played a significant role in driving the adoption of e-wallets in Vietnam.

Market Drivers

• Increasing smartphone penetration: Vietnam has witnessed a significant increase in smartphone adoption, with a large portion of the population now owning smartphones. This has provided a strong foundation for the growth of the e-wallet market, as smartphones serve as the primary medium for accessing and using e-wallet services.
• Growing e-commerce industry: The rapid growth of the e-commerce sector in Vietnam has created a need for convenient and secure payment solutions. E-wallets offer a seamless payment experience for online transactions, driving their adoption among e-commerce consumers.
• Government support and initiatives: The Vietnamese government has been actively promoting digital payment solutions as part of its efforts to build a cashless society. The implementation of QR code payment systems and the reduction of transaction fees for digital payments have incentivized consumers and merchants to adopt e-wallets.

Market Restraints

• Lack of digital literacy: Despite the increasing smartphone penetration, there is still a significant portion of the population that lacks digital literacy skills. This poses a challenge to the widespread adoption of e-wallets, as many potential users may be hesitant to embrace digital payment solutions.
• Security concerns: While e-wallets offer convenience and accessibility, there are concerns regarding the security of financial transactions conducted through these platforms. The risk of data breaches and fraudulent activities may deter some individuals from using e-wallets as their primary payment method.

Market Opportunities

• Rural market potential: The e-wallet market in Vietnam has primarily focused on urban areas. However, there is immense untapped potential in rural areas, where access to traditional banking services may be limited. By targeting the rural market and offering tailored solutions, e-wallet providers can expand their customer base and drive market growth.
• Integration with other services: E-wallet providers can explore partnerships and collaborations with other service providers, such as ride-hailing platforms, food delivery services, and e-commerce platforms. Integrating e-wallets into these platforms can enhance the overall customer experience and encourage more users to adopt e-wallets.

Market Dynamics

The Vietnam e-wallet market is characterized by intense competition and rapid technological advancements. Key players in the market are continuously innovating and expanding their service offerings to gain a competitive edge. Moreover, partnerships and collaborations among e-wallet providers and other industry players are becoming increasingly common, leading to the integration of services and the creation of more comprehensive digital ecosystems.

Regional Analysis

The adoption of e-wallets in Vietnam is widespread across the country, with major cities such as Hanoi and Ho Chi Minh City leading the market. These urban centers have witnessed a higher concentration of e-wallet users due to factors such as higher smartphone penetration, better internet connectivity, and greater awareness of digital payment solutions. However, there is also growing adoption in rural areas, albeit at a slower pace.

Competitive Landscape

Leading companies in the Vietnam E-Wallet Market:

1. MoMo E-wallet
2. ZaloPay
3. ViettelPay
4. AirPay
5. Moca
6. VTC Pay
7. Payoo
8. Vimo
9. GrabPay
10. OnOnPay

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The Vietnam e-wallet market can be segmented based on the types of services offered, user demographics, and geographical regions.

1. Service Type:
   • Peer-to-peer transfers
   • Bill payments
   • Mobile top-ups
   • Online and offline merchant payments
   • Financial services (loans, insurance, investments)
2. User Demographics:
   • Urban users
   • Rural users
   • Students
   • Professionals
   • Small and medium-sized enterprises (SMEs)
3. Geographical Regions:
   • Hanoi
   • Ho Chi Minh City
   • Da Nang
   • Other cities and provinces

Category-wise Insights

1. Peer-to-peer transfers: Peer-to-peer transfers are one of the most common and widely used services offered by e-wallet providers in Vietnam. Users can easily transfer money to friends, family, or acquaintances by simply entering their mobile numbers or scanning QR codes.
2. Bill payments: E-wallets have simplified the process of bill payments by allowing users to settle utility bills, internet bills, and other recurring payments directly through their mobile devices. This convenience has led to increased adoption, particularly among busy urban dwellers.
3. Mobile top-ups: E-wallets provide a convenient platform for users to top up their mobile phone credits without the need for physical scratch cards. This service is popular among young users who heavily rely on their smartphones for communication and internet access.
4. Online and offline merchant payments: E-wallets have gained significant traction in facilitating online and offline merchant payments. Users can make purchases at retail stores, restaurants, and e-commerce platforms by scanning QR codes or using NFC (Near Field Communication) technology.
5. Financial services: Some e-wallet providers in Vietnam are expanding their offerings beyond basic payment services to include financial services such as loans, insurance, and investments. These additional services aim to provide users with a comprehensive digital financial ecosystem.

Key Benefits for Industry Participants and Stakeholders

• Convenience and accessibility: E-wallets offer users the convenience of making quick and hassle-free transactions anytime, anywhere. Users can carry out financial transactions, such as payments and transfers, with just a few taps on their smartphones.
• Cost savings: E-wallets can help users save costs associated with physical cash handling and traditional banking services. With e-wallets, users can avoid ATM withdrawal fees, reduce the risk of loss or theft, and potentially access discounts or rewards offered by e-wallet providers.
• Increased sales and customer loyalty: For merchants, accepting e-wallet payments can lead to increased sales, as e-wallet users are more likely to make impulsive purchases and engage in online shopping. Moreover, e-wallets enable merchants to offer personalized promotions and loyalty programs, fostering customer retention.
• Financial inclusion: E-wallets contribute to financial inclusion by providing individuals without access to traditional banking services the ability to transact digitally. This opens up opportunities for the unbanked and underbanked population to participate in the digital economy.

SWOT Analysis

Strengths:

• Growing smartphone penetration and internet connectivity
• Government support and initiatives promoting a cashless society
• Strong competition leading to innovation and service enhancements
• Increasing acceptance of e-commerce and online transactions

Weaknesses:

• Limited digital literacy among certain segments of the population
• Security concerns related to financial transactions conducted through e-wallets
• Lack of awareness and trust in e-wallet services in rural areas

Opportunities:

• Untapped rural market potential
• Integration of e-wallets with other services and platforms
• Expansion of financial services offered through e-wallets

Threats:

• Security risks and potential data breaches
• Regulatory challenges and compliance requirements
• Competition from domestic and international e-wallet providers

Market Key Trends

1. Integration with lifestyle and service platforms: E-wallet providers are increasingly collaborating with lifestyle and service platforms such as ride-hailing, food delivery, and e-commerce platforms. This integration allows users to access a wide range of services within a single app, enhancing convenience and user experience.
2. Focus on financial services: E-wallet providers are expanding their service offerings to include financial services such as loans, insurance, and investments. This trend aims to position e-wallets as comprehensive financial management platforms, catering to the diverse needs of users.
3. QR code payment adoption: QR code payment systems have gained significant popularity in Vietnam, enabling users to make payments by simply scanning QR codes. E-wallet providers are actively promoting and adopting this technology to facilitate seamless and contactless transactions.
4. Enhanced security measures: E-wallet providers are continuously investing in robust security measures to address concerns related to data privacy and financial transaction security. Biometric authentication, encryption technologies, and transaction monitoring systems are being implemented to ensure user confidence.

Covid-19 Impact

The COVID-19 pandemic has accelerated the adoption of digital payment solutions, including e-wallets, in Vietnam. The fear of virus transmission through physical cash has led to a shift towards contactless payment methods. Additionally, lockdowns and social distancing measures have further propelled the use of e-wallets for online shopping and bill payments.

During the pandemic, e-wallet providers implemented initiatives such as contactless deliveries, digital vouchers, and promotional campaigns to support businesses and encourage e-wallet usage. The pandemic has highlighted the importance of digital financial solutions and has served as a catalyst for the widespread acceptance and adoption of e-wallets in Vietnam.

Key Industry Developments

1. Launch of national QR code standard: In 2021, the State Bank of Vietnam introduced a national QR code standard for payment systems. This initiative aims to streamline and standardize QR code payments across various e-wallet providers, promoting interoperability and enhancing user convenience.
2. Strategic partnerships and acquisitions: E-wallet providers in Vietnam have engaged in strategic partnerships and acquisitions to expand their service offerings and customer base. For instance, GrabPay acquired e-commerce platform Moca to strengthen its presence in the e-wallet market and leverage Moca’s merchant network.
3. Digital banking licenses: The State Bank of Vietnam has granted digital banking licenses to certain e-wallet providers, allowing them to offer more comprehensive financial services. This development blurs the line between traditional banking and e-wallet services, fostering competition and innovation in the market.

Analyst Suggestions

1. Enhance digital literacy initiatives: E-wallet providers should collaborate with the government and other stakeholders to promote digital literacy and educate the population about the benefits and safe usage of e-wallets. This would address the concerns of individuals with limited digital skills and encourage wider adoption.
2. Focus on rural market penetration: E-wallet providers should tailor their services to cater to the unique needs and challenges of rural areas. This could involve partnerships with local businesses, offering targeted financial services, and addressing infrastructure limitations to expand access and adoption in rural regions.
3. Strengthen security measures and build trust: E-wallet providers must invest in robust security measures and transparent privacy policies to address the concerns of users. Regular security audits, strong encryption protocols, and proactive customer support can help build trust and confidence among users.
4. Collaborate with other service providers: E-wallet providers should explore collaborations with other service providers, such as public transportation systems, parking facilities, and educational institutions. Integration with these services can further enhance the convenience and value proposition of e-wallets for users.

Future Outlook

The future of the Vietnam e-wallet market looks promising, with continued growth expected in the coming years. The increasing adoption of smartphones, government support for digitalization, and the growing acceptance of e-commerce are key factors driving market expansion. As e-wallet providers innovate, expand their service offerings, and cater to the evolving needs of users, the market is likely to witness further consolidation and increased competition.

E-wallets have the potential to become the primary payment method for a significant portion of the population, contributing to a more inclusive and digital economy in Vietnam.

Conclusion

The Vietnam e-wallet market is experiencing significant growth, driven by factors such as smartphone penetration, government initiatives, and the rising demand for digital payment solutions. E-wallet providers are continually innovating, expanding their service portfolios, and partnering with other industry players to gain a competitive edge.

While challenges related to digital literacy and security concerns exist, the market presents immense opportunities for e-wallet providers, particularly in rural areas and through the integration with lifestyle platforms. As the market matures, user education, enhanced security measures, and collaboration with stakeholders will play crucial roles in fostering widespread adoption and establishing e-wallets as a mainstream payment method in Vietnam’s evolving digital landscape.