Vietnam takes lead in global mobile payment growth
The growth of the number of people making mobile payments in stores in Vietnam is at the fastest, according to the Global Consumer Insights Survey 2019 by PwC.
The country’s mobile payments increased to 61 percent of digital payments in 2019 from 37% in the previous year.
The PwC survey, conducted in 27 territories and countries worldwide, illustrated that Southeast Asia is leading the customer shift to mobile payments users.
Thailand was ranked second in the region by rising from 19% to 67%, followed by third-ranked Malaysia (17% to 40%) and the Philippines (14% to 45%).
Shirish Jain, payments director for PwC Strategy, said Asia remains the powerhouse leading the customer shift to mobile payment, with the eight Asian in the top 10 and six of them in Southeast Asia.
E-payment has been on the rise in Vietnam in recent years. The Vietnamese fintech market is set to reach a value of USD 8 billion in 2020. Digital payment solutions account for 89% of the fintech market in Vietnam, while individual and business financial areas are also forecast to have growth rates of 31.2% and 35.9% respectively by 2025.
Governments across Southeast Asia are pushing ahead with efforts to create cashless economies, with less developed countries such as Vietnam and Thailand leapfrogging richer ones like Singapore and Malaysia in electronic payments, Nikkei Asian Review reports.
Vietnam and Thailand are experiencing a boom in mobile payments as more people use e-wallets to pay for goods and services without going through banks, it says.
Vietnam has been promoting electronic payments since 2008. Only about 40% of the country’s 95 million people have bank accounts, mostly in urban areas, while there are around 120 million mobile phone subscriptions.