Vietnam Mobile Payments Market Outlook to 2028

Vietnam Mobile Payments Market Overview

The Vietnam mobile payments market is valued at USD 718.43 billion, based on a five-year historical analysis. This significant valuation is driven by a multitude of factors, most notably the rapid adoption of smartphones and the countrys digital transformation. The growing emphasis on cashless transactions, along with the increasing presence of fintech startups, has played a key role in boosting mobile payment volume.

Cities such as Hanoi and Ho Chi Minh City are dominant in the Vietnam mobile payments market. These urban areas lead due to their high concentration of tech-savvy consumers, the availability of robust digital infrastructure, and the expanding e-commerce ecosystem. Additionally, the widespread acceptance of digital wallets like Momo and Zalo Pay in these regions underpins their leadership in the market.

The Vietnamese government aims to achieve full interoperability across payment platforms by 2025 under the National Payment Strategy. In 2023, the State Bank of Vietnam implemented payment standards to harmonize cross-platform transactions, which has already enabled 500,000 interoperable transactions across digital wallets. This strategy is set to enhance payment efficiency and foster collaboration between fintech providers.

Vietnam Mobile Payments Market Segmentation

By Payment Type: Vietnams mobile payments market is segmented by payment type into peer-to-peer payments, retail payments, bill payments, and international remittances. Recently, retail payments have a dominant market share under the segmentation by payment type, owing to the rise in e-commerce platforms and the increasing reliance on digital wallets for daily transactions. The simplicity and convenience offered by mobile payment methods in retail settings have resonated strongly with consumers, especially in urban areas.

Payment Type

Market Share (2023)

Peer-to-Peer Payments

25%

Retail Payments

40%

Bill Payments

20%

International Remittances

15%

By Payment Technology: The Vietnam mobile payments market is segmented by payment technology into NFC (Near Field Communication) payments, QR code payments, mobile banking apps, and USSD payments. Recently, QR code payments have taken a dominant market share under the segmentation by payment technology, driven by their widespread adoption in both retail and small business settings. The ease of scanning a QR code to make payments, along with the low-cost infrastructure required for merchants, has made this technology particularly popular among consumers and businesses, especially in high-traffic urban areas.

Payment Technology

Market Share (2023)

NFC Payments

20%

QR Code Payments

45%

Mobile Banking Apps

25%

USSD Payments

10%

Vietnam Mobile Payments Market Competitive Landscape

The Vietnam mobile payments market is dominated by a few major players, including local platforms such as Momo and Zalo Pay, alongside global entrants like Grab Pay. This consolidation reflects the significant influence of key companies that leverage their technological prowess and strategic partnerships to expand their consumer base. The competition is fierce, with each company vying for dominance through innovations in payment solutions and enhanced user experience.

Company Name

Establishment Year

Headquarters

No. of Users

Transaction Volume

Digital Ecosystem Integration

Security Features

Partnerships

Revenue Growth

Momo

2007

Ho Chi Minh City

30 million

Zalo Pay

2016

Hanoi

20 million

VNPay

2011

Hanoi

15 million

Grab Pay

2012

Singapore

10 million

Shopee Pay

2015

Singapore

8 million

Vietnam Mobile Payments Market Analysis

Market Growth Drivers

Increased Smartphone Penetration: Smartphone penetration in Vietnam has surged significantly, with over 97 million mobile phone connections recorded in 2023. The expanding availability of affordable smartphones, particularly from brands like Xiaomi and Samsung, has allowed a larger section of the population to access mobile services, directly contributing to the growth of mobile payments. According to the Ministry of Information and Communications (MIC), smartphone usage has grown rapidly due to the expanding 4G and 5G network infrastructure, which has become increasingly available across the country.

Rise of Cashless Transactions: Vietnam has seen a rise in cashless transactions, with the total number of non-cash payment transactions reaching over 2 billion in 2023, according to the State Bank of Vietnam (SBV). As more consumers and businesses adopt mobile payments, there is a marked shift toward digital financial ecosystems. The SBV's report also highlighted a 35% increase in mobile banking transactions during 2022-2023, signaling strong momentum for mobile payments.

Government Digitalization Initiatives: Vietnams government has actively promoted digital transformation as part of its National Digital Transformation Program. By 2023, a significant number of government services were available online, driving the adoption of mobile payments for essential services such as taxes, utilities, and public transportation. The government's Cashless Vietnam initiative focuses on reducing the reliance on cash, further accelerating the mobile payments market. The National Digital Payments Strategy aims to improve interoperability and ease of use across digital payment platforms, fostering an environment conducive to mobile payment adoption.

Market Challenges
:

Data Privacy and Cybersecurity Concerns: Despite the rise in mobile payments, Vietnam reported 1,050 cybersecurity incidents in 2023, with many targeting financial platforms. The Vietnam Computer Emergency Response Team (VNCERT) noted that the growing frequency of cyberattacks is creating trust issues among consumers. Mobile payment providers need to invest heavily in enhancing data security and ensuring compliance with cybersecurity standards, as regulatory measures intensify

Fragmentation in the Payments Ecosystem: Vietnam's mobile payment ecosystem remains highly fragmented, with over 40 payment apps available, including Momo, Zalo Pay, and Viettel Pay. This fragmentation has led to interoperability challenges, where users face difficulty making payments across different platforms. The State Bank of Vietnam (SBV) is working on creating a unified national payment platform to mitigate these challenges, but as of 2023, no standard has been fully implemented.

Vietnam Mobile Payments Market Future Outlook

Over the next few years, the Vietnam mobile payments market is expected to experience substantial growth, driven by continuous government initiatives to promote a cashless economy, advances in digital payment technologies, and an increasing number of young consumers adopting mobile wallets. The expansion of 5G networks, enhanced cybersecurity measures, and partnerships between fintech firms and traditional banks are anticipated to further fuel the growth of the market.

Market Opportunities
:

Adoption of Digital Wallets (Momo, Zalo Pay): By 2023, Vietnam had 25 million active users on Momo and Zalo Pay, representing a surge in the use of digital wallets. The widespread adoption of these wallets has reshaped consumer behavior, with Momo alone handling transactions worth 300 million VND per day in early 2024. Both platforms now dominate mobile payments, making them key drivers of Vietnam's cashless economy.

Growth of Contactless Payments: Contactless payments grew steadily, supported by 10 million contactless payment cards issued by 2023. Integration with public transport and retail platforms further fueled adoption, with daily transactions increasing threefold since 2022. Contactless payments are now a preferred method in urban areas, supported by infrastructure expansion in Hanoi and Ho Chi Minh City.
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