Once a cash-dominant country, Vietnam has evolved significantly over the past seven years, with digital payment methods including digital wallets, QR codes, and account-to-account (A2A) transactions becoming increasingly popular, a new report by AppotaPay, a Vietnamese payment company, says.
The report, which looks at payment trends across Asia-Pacific (APAC), finds that the majority of Vietnamese consumers (59%) now prefer cashless payments, citing convenience, safety and theft prevention, as well as better financial management as key reasons. QR codes, in particular, are the favored method, with 62% of consumers using them to transact an average of 16.2 times per month.
These findings are confirmed by data from Vietnam’s central bank. Pham Anh Tuan, Director General of the State Bank of Vietnam (SBV)’s Payment Department, said during an industry event in September that cashless payment transactions have grown at an average annual rate of over 67% since at least 2021. Over the past year, more than 60% of transactions in Vietnam have been contactless, with cashless volume reaching 5.5 billion in Q1 2025, including 4.5 billion digital transactions.
QR code payments, in particular, increased by a staggering 106.7% in volume in the first 11 months of 2024 and 84.8% in value year-on-year (YoY).
A2A payments also surged. In 2024, the National Payment Corporation of Vietnam (NAPAS) processed 9.56 billion transactions, an increase of approximately 30% in the number of transactions compared to 2023, said NAPAS Deputy General Director Hung Nguyen.
Fintech and financial access
Vietnam’s adoption of digital payments has grown alongside its fintech industry. Between 2018 and 2022, the number of new fintech firms rose by over 180 to about 260 fintech companies, according to Statista.
A number of these have reached wide success, attracting foreign investors and pushing their valuations above the billion-dollar mark. For example, M-Service, the owner of Vietnam’s biggest mobile payment app MoMo, reached unicorn startup in 2021 after securing a US$200 million Series E round. MoMo is Vietnam’s leading digital wallet, serving over 30 million users and hundreds of thousands of partners nationwide.
Last year, M-Service posted its first full-year profit, and the company is now reportedly working on an initial public offering (IPO) abroad. It’s said to be in negotiations with partners and could be raising 10% of its valuation from the offering, which could take place in Singapore or the US.
Financial institutions are also expanding digital services. VPBank, for example, launched in 2021 its digital banking platform VPBank NEO. The platform is designed to provide an affordable banking proposition with superior digital experience, leveraging cloud computing, data, and artificial intelligence (AI) for customer service but also fraud detection. By the end of 2024, VPBank NEO had attracted more than 10 million users, processing more than 700 million transactions.
Similarly, VPBank’s digital-only bank, Cake, now serves 5 million customers and processes 700,000 credit applications monthly. These impressive figures reflect a shift towards digital transactions and profound customer behavioral changes.
Vietnamese banks are also expanding their support for small businesses. For example, Vietcombank has introduced VCB DigiBiz, a digital banking solution exclusively designed for business customers, offering seamless and convenient banking services 24/7.
Doan Hong Nhung, Executive Board Member and Head of Retail Banking at Vietcombank, said at an event in September that the bank is currently working on data-driven credit scoring systems to deliver more transparent and tailored lending.
Vietnam’s dynamic fintech landscape has helped significantly expand financial inclusion. According to SBV’s Pham, 86.97% of adults held a bank account by the end of 2024, totaling 204.5 million individual payment accounts and 154.1 million bank cards. In comparison, only 31% of adults had a banking account in 2014, demonstrating the rapid expansion of financial inclusion.
Challenges remain
Despite progress, challenges to fintech growth and adoption remain. Deputy Prime Minister Ho Duc Phoc identified challenges such as privacy issues, and reluctance to share personal data as critical barriers. Infrastructure issues, such as weak or unstable network coverage in some areas, are also impeding transaction efficiency.
AppotaPay’s report also highlights these concerns amid soaring fraud risks. According to Sumsub’s APAC Identity Fraud Report 2024, the region has among the highest fraud rates in the world, peaking at 6% in Indonesia. This figure is four times the peak in the US and Canada at 1.66%.
Looking ahead, SBV’s Pham said that the government will be focusing on advancing shared digital infrastructure, payment technology platforms, and diversifying financial services. With digital payments remaining a cornerstone of national digital transformation, the central bank will continue to work on improving the legal framework, promoting modern services such as domestic cards and e-wallets, and strengthening public-private partnerships to ensure a safe, efficient and inclusive payment ecosystem.
These initiatives will build on notable developments that have already occurred this year, including the introduction of a banking regulatory sandbox, and a pilot program for the cryptocurrency industry. In July, new regulations were introduced, allowing innovative fintech products to be tested under a special regulatory sandbox regime. Fintech solutions eligible for testing include credit scoring, open API, and peer-to-peer lending.
In September, Vietnam’s Deputy Prime Minister Ho Duc Phoc signed and issued a resolution on the launch a five-year pilot program with strict requirements for the crypto industry. These rules cover the offering and issuance of crypto assets, the organization of crypto-asset trading markets, crypto custody services, and platforms for issuing crypto assets, marking the first time Vietnam has formally allowed crypto trading and related services under a legal framework.
Featured image: Edited by Fintech News Singapore, based on images by Frolopiaton Palm, lifeforstock and Wagner France 3D Design via Freepik
