Vietnam Mobile Payment Market Outlook to 2028

Vietnam Mobile Payment Market Overview

The Vietnam Mobile Payment market is valued at USD 554 million, with growth driven by increasing smartphone penetration, government initiatives, and rising digital literacy. The growing adoption of mobile payment platforms like MoMo, Zalo Pay, and VNPay reflects a shift from traditional cash-based transactions to digital payment methods. Mobile payments are becoming an integral part of daily life in Vietnam, especially among urban populations, where consumers prefer quick, contactless transactions across retail, e-commerce, and transportation sectors.

Cities like Ho Chi Minh and Hanoi dominate the mobile payment market due to their dense population and higher rate of smartphone adoption. The rapid urbanization in these areas has facilitated the expansion of cashless payments, supported by a robust network of merchants and increasing consumer preference for digital wallets.

The State Bank of Vietnam (SBV) has introduced a regulatory sandbox for fintech companies to test innovative financial services, including mobile payments. By 2024, over 20 fintech startups had been granted permission to operate under this framework, allowing them to pilot their services and expand mobile payment options across the country. This regulatory support is accelerating the growth of the mobile payment sector.

Vietnam Mobile Payment Market Segmentation

By Payment Mode: The market is segmented by payment mode into QR code payments, NFC (Near Field Communication) payments, and bank transfers. QR code payments dominate the market due to their simplicity and widespread acceptance among small and medium-sized merchants. Retailers, street vendors, and even micro-merchants increasingly prefer QR codes, as they require minimal setup and provide a convenient, cashless transaction option for consumers.

By End- Use Application: The market is also segmented by end-use application into retail, transportation, and e-commerce. Retail payments hold a dominant market share due to the growing number of point-of-sale (POS) terminals equipped with mobile payment capabilities. Major supermarket chains, convenience stores, and local markets have rapidly embraced mobile payment systems, enhancing customer experience through faster, contactless transactions.

Vietnam Mobile Payment Market Competitive Landscape

The market is characterized by a few dominant players, with local fintech companies and telecom operators leading the market. M_Service (MoMo) and Viettel Digital Services are two of the largest players, with market penetration.

Company

Established

Headquarters

Number of Employees

Key Partnerships

Revenue (2023)

Customer Base

Technology Used

Expansion Plan

M_Service (MoMo)

2007

Ho Chi Minh City

Viettel Digital Services

2018

Hanoi

Zalo Pay

2017

Ho Chi Minh City

National Payment Corp. of Vietnam (NAPAS)

2004

Hanoi

Grab Pay

2018

Singapore (Vietnam Ops.)

Vietnam Mobile Payment Market Analysis

Market Growth Drivers

Increasing Mobile Device Penetration: As of 2024, Vietnam boasts over 135 million mobile subscriptions, surpassing its population of 100 million people, driven by the growing use of smartphones in both urban and rural areas. This proliferation of mobile devices has contributed to a sharp rise in mobile payments.

Supportive Banking Infrastructure: Vietnams banking infrastructure has rapidly expanded, with over 45 million active bank accounts as of 2024. The governments drive to foster financial inclusion has resulted in many banks partnering with fintech firms to offer mobile payment services. This collaboration between traditional banks and new-age fintechs is projected to boost mobile payment usage, particularly in remote areas, where banking access has historically been limited.

Growing E-commerce Sector: Vietnams e-commerce sector has experienced exponential growth, with online sales projected to hit VND 600 trillion by the end of 2024. As e-commerce continues to thrive, mobile payments have emerged as a preferred mode of transaction for online shopping.

Market Challenges

Cybersecurity Concerns: With over 70 million digital payment users in Vietnam by 2024, there is growing concern about the security of mobile payment platforms. Reports from government agencies show that in 2023, Vietnam experienced a 50% increase in cyberattacks targeting online financial transactions, resulting in monetary losses exceeding VND 30 billion.

Infrastructure and Connectivity Gaps: Despite significant improvements, Vietnam still faces challenges in terms of mobile connectivity in certain regions. As of 2024, around 20 million people in rural areas still lack reliable internet access, which is crucial for mobile payment platforms to function effectively. Without proper connectivity, mobile payment adoption in these areas remains a challenge.

Vietnam Mobile Payment Market Future Outlook

Over the next five years, the Vietnam mobile payment industry is expected to witness growth, driven by increased smartphone penetration, government support for cashless initiatives, and the growing e-commerce sector.

Future Market Opportunities

Growth of QR Code- Based Payments: QR code-based payments are anticipated to become the dominant form of mobile payments by 2029, with over 100 million Vietnamese users expected to use QR codes for transactions. The convenience and widespread availability of QR payment options will continue to drive their adoption across all sectors, including retail, hospitality, and transportation.

Expansion of Digital Banking Integration: Over the next five years, Vietnam will see a surge in digital banking integration with mobile payment platforms, with over 80% of all banks offering mobile wallet services by 2029. This integration will simplify transactions and offer users a seamless experience, further boosting mobile payment usage.
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