E-payments and Fintech
MARKET OVERVIEW OF
E-PAYMENTS IN VIETNAM
The market of electronic Wallet in Vietnam has significantly vibrant at present. To illustrate, along with the government decision for approving the project of development of non-cash payment in Vietnam in the period from 2016 to 2020, the E-payment market transaction reached at more than $2.3 billion in 2017.
The increase at 64% as compare to the previous year (Vietnam law & Legal forum 2019). Besides that due to the annual growth rate was recorded at 16% in the period of 2013 to 2015 (Q&Me 2019) which could use to assume for the market growth rate at present may approximately reach at 30% annually. Furthermore, according to the SBV (2019), there are 30 institutions are not bank get licensed for intermediaries providing payment services in Vietnam (See Appendix 2).
Including 23 organizations providing electronic wallet service which divided into two groups: The electronic Wallet of a financial technology company (fintech) and electronic Wallet of the telecommunications company. The electronic Wallet of the fintech company (including brand of Momo, Payoo, Vimo, Moca …) with the focused features as sending and receiving money through the mobile phone; bill payment services as recharge for mobile phones of all operators, fast payment of utility bills, internet; financial loans, installment loans, consumer loans, purchase airline tickets, movie tickets, tickets, insurance.
Meanwhile, the electronic Wallet of the telecommunications company besides recharge and payment services, also take advantage of the parent company to increase the utility features (See Appendix 3). Although many Electronic wallets are operating in Viet Nam at present, there are only four service providers are holding for 90% the whole market, including MoMo, Zalopay, Viettel pay, and Airpay (See Figure 1).
Although the market seems to be settled, the major players are still looking a new ways to attract clients by adding new functionalities. In a big cities we observe growing numbers of users, however it seems that gaining new clients the metropolis was postponed for the full implementation of 5G.