The APMs in Vietnam: Alternative Payment Methods in a Rapidly Digitising Economy

Introduction

Vietnam’s payment ecosystem is undergoing a transformative shift. Historically a cash-dominant market, Vietnam has experienced rapid adoption of mobile wallets, QR payments, and fintech-led financial services over the past decade. With a young, tech-savvy population, rising smartphone penetration, and government-backed initiatives to promote cashless transactions, Vietnam is emerging as a dynamic hub for alternative payment methods (APMs) in Southeast Asia.

Unlike markets like Japan or South Korea, where cash coexistence is persistent, Vietnam is leapfrogging traditional banking infrastructure, with APMs often serving as the first digital financial touchpoint for millions of consumers. The country’s APM ecosystem is particularly strong in e-commerce, P2P transfers, retail, and ride-hailing, and is increasingly integrating with SME payment solutions and cross-border remittances.

This article explores Vietnam’s APM landscape in depth, covering payment statistics, consumer behaviour, regulatory frameworks, leading players, challenges, and the broader impact on regional fintech growth.

1. Vietnam’s Digital Payments Landscape: Market Foundations

Economic and Digital Infrastructure Context

Vietnam is a fast-growing, emerging digital economy:

• Population: ~99 million
• Internet penetration: ~73% (rising rapidly)
• Smartphone penetration: ~70–75%
• Bank account ownership: ~70% of adults (increasing with fintech adoption)
• Urbanisation: ~38–40% (but urban centres lead APM adoption)

The combination of a young population, rising middle class, and mobile-first habits creates fertile ground for rapid APM growth.

Payment Market Size and Growth

Vietnam’s digital payments sector has seen explosive growth:

• Annual digital payment transaction value exceeds USD 100–120 billion
• Cash still accounts for ~60% of transactions but declining fast
• Mobile wallets and QR-based payments now account for 20–25% of non-cash transactions
• E-commerce, government initiatives, and SME digitisation are major drivers

The market is characterised by fast adoption of mobile-first solutions, often bypassing traditional cards.

2. Understanding Alternative Payment Methods (APMs) in Vietnam

In Vietnam, APMs include:

• Mobile wallets (bank-led and non-bank)
• QR code payments
• Account-to-account (A2A) bank transfers
• E-money and stored-value systems
• BNPL and installment-based payment solutions
• Super-app integrated payments (e.g., ride-hailing apps)

A defining feature of Vietnam’s APM ecosystem is strong collaboration between banks, fintechs, and government-backed infrastructure, ensuring both growth and compliance.

3. APM Adoption Trends and Consumer Behaviour

E-commerce Payments

E-commerce has driven mass adoption:

• APMs account for 30–35% of online transactions
• Mobile wallets and QR codes dominate for:
  • Online marketplaces
  • Digital services
  • Food delivery
• Cards are primarily used for higher-value purchases or cross-border transactions

Vietnamese consumers prefer speed, convenience, and mobile-first checkout, making wallets the natural choice.

Offline & Retail Payments

Offline adoption is increasing rapidly:

• QR code payments are widely accepted in convenience stores, supermarkets, and street vendors
• Ride-hailing and food delivery apps embed payment directly in the platform
• Cash usage is declining in urban centres, especially among Gen Z and Millennials

Merchant adoption is incentivised through low transaction fees and government initiatives.

Demographic Insights

• Young urban users: QR wallets, super-apps, ride-hailing payments
• Middle-aged urban users: Bank-linked wallets + cards
• Rural users: Cash still dominant, with gradual wallet adoption

Vietnam’s APM adoption is rapid among digitally literate populations, while financial inclusion efforts aim to extend adoption to underbanked regions.

4. Key APM Categories and Leading Players in Vietnam

1) Mobile Wallets

Non-bank & bank-led wallets dominate:

• MoMo – Vietnam’s largest mobile wallet; offers P2P, bill payments, QR payments
• ZaloPay – Integrated with Zalo (Vietnam’s top messaging platform)
• ViettelPay – Telecom-backed wallet for unbanked users
• VNPay – Bank-linked wallet and QR payment aggregator

These wallets are widely used in both e-commerce and offline retail, driving mass adoption.

2) QR Code Payment Systems

QR payments are central to Vietnam’s cashless strategy:

• VNPay QR – Nationwide QR standard for retail and SMEs
• MoMo QR – Widely accepted in convenience stores, supermarkets, and street vendors
• ZaloPay QR – Integrated with super-apps and online marketplaces

QR codes are preferred due to low merchant onboarding costs and interoperability.

3) Account-to-Account (A2A) Transfers

Bank transfers are increasingly digitised:

• Real-time transfers available via domestic banking rails
• Used heavily for P2P, bill payments, and SME transactions
• Supported by open banking and mobile banking apps

A2A transfers remain a cost-effective alternative to card payments.

4) E-Money & Prepaid Solutions

• Prepaid cards are popular among underbanked users and students
• Some wallets also function as stored-value instruments for transit and micro-payments

5) Buy Now, Pay Later (BNPL)

BNPL is emerging rapidly in Vietnam:

• Offered by fintechs and bank-backed providers
• Integrated with e-commerce platforms
• Popular among urban Millennials and Gen Z consumers

5. Regulatory and Policy Framework

Vietnam’s payment ecosystem is regulated by the State Bank of Vietnam (SBV).

Key Regulatory Characteristics

• Licensing of mobile wallet providers and e-money institutions
• AML and KYC compliance mandatory
• Consumer protection and data privacy standards enforced
• Encouragement of QR code standardisation and interbank payment interoperability

Government Initiatives

• National cashless roadmap (targeting 30% non-cash retail payments by 2025)
• Incentives for SMEs to adopt QR and wallet payments
• Digital voucher and stimulus programs delivered via wallets

The regulatory framework balances rapid fintech growth with systemic stability.

6. Drivers Behind APM Growth in Vietnam

1. Government-Led Digitisation
   • Cashless initiatives and QR standards drive adoption
2. Mobile-First Consumer Behaviour
   • Young population uses smartphones for nearly all financial transactions
3. E-commerce and Super-App Integration
   • MoMo, ZaloPay, VNPay integrate payments directly into lifestyle apps
4. SME Digitisation
   • SMEs adopt QR and wallet payments for cost efficiency, transparency, and faster settlement

Comprehensive List of Alternative Payment Methods (APMs) in Vietnam

1️⃣ Bank-Led Wallets

• VNPay
• Vietcombank Wallet
• VietinBank Wallet

2️⃣ Non-Bank Wallets / Super-App Payments

• MoMo
• ZaloPay
• ViettelPay

3️⃣ QR Payment Systems

• VNPay QR
• MoMo QR
• ZaloPay QR

4️⃣ Account-to-Account Transfers

• Domestic bank transfers
• Mobile banking P2P transfers

5️⃣ BNPL and Installments

• MoMo PayLater
• AlePay BNPL
• Fintech-backed installment platforms

APM Comparison Table

7. Challenges and Constraints

• Cash still dominant in rural areas
• Fragmented wallet ecosystem
• Merchant adoption hurdles in smaller towns
• Regulatory compliance may slow some fintech innovations

8. Vietnam’s Impact on Regional Fintech and Payments

Vietnam is becoming a regional fintech innovation hub:

• Mobile-first wallets serving as examples for neighboring markets
• QR payment adoption influencing Southeast Asia standards
• Cross-border remittances and regional e-commerce powered by Vietnamese fintechs

Vietnam’s APM ecosystem demonstrates how emerging markets can leapfrog traditional banking infrastructure.

9. Future Outlook and Projections

Over the next 3–5 years:

• APM adoption expected to exceed 40–45% of non-cash transactions
• Wallets and QR payments to dominate urban retail and e-commerce
• BNPL will gain traction among Millennials and Gen Z
• Cross-border payments and integration with ASEAN fintech ecosystems will expand

Vietnam is evolving toward a mobile-first, cashless economy, bridging urban digital adoption and rural financial inclusion.

Conclusion

Vietnam’s APM ecosystem illustrates rapid digital leapfrogging in a cash-dominated emerging economy. Mobile wallets, QR codes, A2A transfers, and BNPL solutions are redefining how consumers and SMEs transact.

As Vietnam continues its push toward a cashless society and fintech-driven financial inclusion, its APM experience offers valuable lessons for emerging economies globally.