Vietnam sees increase in Mobile Money users, reaching 3.9 million accounts

According to the Telecommunications Department of the Ministry of Information and Communications, Vietnam has seen a significant surge in the adoption of Mobile Money services, with over 3.9 million users, a 6.3 per cent increase compared to March 2023 and three times higher than the same period in April 2022.

The number of Mobile Money users in rural areas, mountainous regions, and remote areas has reached over 2.7 million, accounting for 69 per cent of total users.

Currently, there are 9,953 Mobile Money service providers throughout the country, marking a 12 per cent increase compared to March 2023. The number of establishments accepting Mobile Money payments has reached 15,326, reflecting a marginal 0.2 per cent growth.

The total number of Mobile Money transactions, including deposits, withdrawals, fund transfers, and payments, has exceeded 26.1 million, with a transaction value exceeding VND1.683 trillion.

During the first three months of 2023, non-cash payment activities continued to exhibit robust growth compared to the same period last year. Transactions through interbank electronic payment systems witnessed an 8.55 per cent increase in value, while transactions via financial switching and electronic clearing systems surged by 70.77 per cent in terms of volume and 18.55 per cent in terms of value.

A notable shift from cash withdrawals to non-cash payments is taking place. Point-of-sale (POS) transactions have soared by 37.57 per cent in volume and 32.09 per cent in value, while ATM transactions have continued their decline, decreasing by 2.37 per cent in volume and 4.02 per cent in value.

As of the end of March, there were a total of 21,347 ATMs and 430,625 POS machines nationwide, representing respective growth rates of 3.88 per cent and 26.34 per cent compared to the same period in 2022.

An intriguing development is the emergence of new, modern, and cost-effective payment solutions such as quick response (QR) code payments and contactless payments. Banks and intermediary payment service providers have seamlessly integrated these methods into their products and services to enhance convenience and ensure security. This concerted effort aims to popularise non-cash payment methods among individuals and businesses.

Mobile Money is a service that allows users to make small-value transactions for goods and services using their mobile phone accounts. Unlike conventional electronic wallets, Mobile Money provides users with an account linked to their mobile subscriptions, eliminating the need for a bank account. This account, akin to a telecommunications account, allows users to transfer money and make legitimate payments for services and goods within Vietnam.

The Mobile Money service has been granted a two-year pilot implementation licence by the State Bank of Vietnam, commencing from November 2021 until November 2023.

Moving forward, the Telecommunications Department plans to expand Mobile Money services to remote island districts and inland areas by leveraging existing network connections.

The potential of Mobile Money is immense, especially considering that 60 per cent of Vietnam's population resides in rural areas, where acceptance points for non-cash payments are primarily concentrated in major cities. The deployment of Mobile Money will also accelerate the financial digitalisation process in Vietnam, ensuring that no one is left behind or restricted from accessing financial services.

Vietnam is in the midst of an accelerated digital transformation, and one of the prerequisites for a successful transition is non-cash payments. The implementation and utilisation of Mobile Money services will bridge the digital divide between urban and rural areas and contribute to financial inclusion nationwide.

With non-cash transactions surging by 53 per cent in volume and internet-based transactions skyrocketing by 88 per cent in volume, Vietnam's drive towards a cashless society is gaining momentous growth, empowering 75 per cent of its population with active bank accounts and registering over 3.71 million mobile money accounts.