Minh-Ngoc Nguyen
Research Expert covering Vietnam
Digital payments have been the fintech sector that has received the most funding and attention from investors in Vietnam in recent years. Formerly one of the most cash-reliant countries in Southeast Asia, Vietnam has seen one of the highest cashless payments adoption rates in the region in 2020. The emerging e-wallet segment has been contributing significantly to the growth of Vietnamese digital payments, accounting for an increasing transaction value which was forecast to reach over 48 billion U.S. dollars by 2025.
This segment consisted of some of the biggest Vietnamese and Southeast Asian tech companies, such as ViettelPay from the homegrown Viettel Group and Singaporean Sea Group’s ShopeePay (AirPay). On the other hand, MoMo, a Vietnamese super app, has consistently been the leading mobile wallet brand, holding over 50 percent of the market share as of 2020. Having amassed more than 25 million users in 2021, MoMo is currently focusing on its expansion after reportedly bagging 100 million U.S. dollars in its Series D funding. Meanwhile, other e-wallets have made significant progress in attracting users thanks to the boost in usage of digital payment during the COVID-19 pandemic, signaling a continuing dynamic competition and further growth of the Vietnamese e-payment market.
Growing usage of e-wallets in Vietnam
With the growth of the Vietnamese e-commerce segment comes the growth of digital payment methods. The COVID-19 pandemic has made using digital payment services, especially e-wallets, the “new normal” among many of the highly connected consumers in Vietnam. In 2020, there were around 19.2 million mobile wallet users in the country, and the number of users was forecast to grow almost three-fold between 2020 and 2025. According to a survey conducted in 2021, the usage rate of e-wallets reached close to 60 percent among respondents across Vietnam. This rate was noticeably higher in bigger cities, such as Ha Noi or Ho Chi Minh City. The same survey also revealed that over 60 percent of Vietnamese users had at least two e-wallet apps in use.Vietnamese e-wallet market growth and competitive landscape
E-wallets have taken the center stage in the booming fintech sector in Vietnam. A young, connected population and a growing economy have made Vietnam a promising market for this digital service. As a result, the competition among an increasing number of e-wallet providers has accelerated the growth of this segment within only a few years. Starting with five e-wallet providers in 2015, Vietnamese consumers had over 30 e-wallets to choose from in 2020.This segment consisted of some of the biggest Vietnamese and Southeast Asian tech companies, such as ViettelPay from the homegrown Viettel Group and Singaporean Sea Group’s ShopeePay (AirPay). On the other hand, MoMo, a Vietnamese super app, has consistently been the leading mobile wallet brand, holding over 50 percent of the market share as of 2020. Having amassed more than 25 million users in 2021, MoMo is currently focusing on its expansion after reportedly bagging 100 million U.S. dollars in its Series D funding. Meanwhile, other e-wallets have made significant progress in attracting users thanks to the boost in usage of digital payment during the COVID-19 pandemic, signaling a continuing dynamic competition and further growth of the Vietnamese e-payment market.
