Vietnam's Digital Leap: QR & A2A Power Cashless Revolution

Vietnam has undergone a remarkable transformation from a predominantly cash-based economy to a thriving digital payment landscape over the past seven years. This significant shift is largely attributed to the burgeoning popularity of digital payment methods, most notably digital wallets, QR codes, and account-to-account (A2A) transactions, as highlighted in a recent report by Vietnamese payment company, AppotaPay.

The comprehensive report, which meticulously analyzes payment trends across the Asia-Pacific (APAC) region, reveals that a substantial majority of Vietnamese consumers—specifically 59%—now express a strong preference for cashless payments. The primary motivators for this preference include unparalleled convenience, enhanced safety and effective theft prevention, and improved personal financial management. Among these innovative methods, QR codes have emerged as the frontrunner, with an impressive 62% of consumers regularly utilizing them to conduct an average of 16.2 transactions each month.

The Surge of Cashless Transactions: QR Codes and A2A Leading the Way

These compelling findings are corroborated by official data released by Vietnam’s central bank. Pham Anh Tuan, the distinguished Director General of the State Bank of Vietnam (SBV)’s Payment Department, underscored at an industry event in September that cashless payment transactions have experienced an extraordinary average annual growth rate exceeding 67% since 2021. In the preceding year alone, more than 60% of all transactions within Vietnam were conducted contactlessly, with the total cashless volume reaching a staggering 5.5 billion in Q1 2025, encompassing 4.5 billion digital transactions.

The adoption of QR code payments, in particular, has witnessed an exponential increase, surging by an astonishing 106.7% in volume and 84.8% in value year-on-year (YoY) during the first eleven months of 2024. Simultaneously, A2A payments have also demonstrated robust growth. In 2024, the National Payment Corporation of Vietnam (NAPAS) successfully processed 9.56 billion transactions, marking an approximate 30% increase in the number of transactions compared to 2023, as confirmed by NAPAS Deputy General Director Hung Nguyen.

Fintech Innovation and Expanding Financial Access

The rapid adoption of digital payments in Vietnam has progressed synergistically with the robust expansion of its fintech industry. Between 2018 and 2022, the number of new fintech firms escalated by over 180, reaching approximately 260 companies, according to Statista. Many of these enterprises have achieved substantial success, drawing significant foreign investment and pushing their valuations beyond the billion-dollar threshold.

Unicorns and Digital Wallet Dominance

A prime example is M-Service, the parent company of Vietnam’s largest mobile payment application, MoMo. MoMo attained unicorn status in 2021 after successfully securing a US$200 million Series E funding round. Today, MoMo stands as Vietnam’s preeminent digital wallet, catering to over 30 million users and partnering with hundreds of thousands of businesses nationwide. Last year, M-Service proudly reported its first full-year profit, and the company is reportedly exploring an initial public offering (IPO) abroad, potentially raising 10% of its valuation through an offering that could take place in Singapore or the US.

Traditional Banks Embrace Digital Transformation

Financial institutions are also proactively expanding their digital service portfolios. VPBank, for instance, launched its innovative digital banking platform, VPBank NEO, in 2021. This platform is meticulously designed to offer an affordable banking proposition coupled with a superior digital experience, leveraging cutting-edge cloud computing, data analytics, and artificial intelligence (AI) not only for exemplary customer service but also for sophisticated fraud detection. By the close of 2024, VPBank NEO had successfully attracted over 10 million users, processing more than 700 million transactions.

In a similar vein, VPBank’s digital-only bank, Cake, currently serves 5 million customers and processes an impressive 700,000 credit applications monthly. These remarkable figures vividly illustrate a profound shift towards digital transactions and significant changes in customer behavior. Furthermore, Vietnamese banks are actively extending their support to small businesses. Vietcombank, for example, has introduced VCB DigiBiz, a bespoke digital banking solution tailored exclusively for business customers, providing seamless and convenient 24/7 banking services.

Doan Hong Nhung, Executive Board Member and Head of Retail Banking at Vietcombank, announced at a September event that the bank is diligently working on developing data-driven credit scoring systems to facilitate more transparent and personalized lending solutions. This dynamic fintech landscape has been instrumental in significantly expanding financial inclusion across the nation. According to SBV’s Pham, an astounding 86.97% of adults held a bank account by the end of 2024, culminating in 204.5 million individual payment accounts and 154.1 million bank cards. This represents a monumental leap compared to 2014, when only 31% of adults possessed a banking account, underscoring the rapid and extensive expansion of financial inclusion.

Persistent Challenges and Future Trajectories

Despite the commendable progress, certain challenges persist in impeding the optimal growth and widespread adoption of fintech in Vietnam. Deputy Prime Minister Ho Duc Phoc has identified crucial barriers, including privacy concerns and a prevailing reluctance among individuals to share personal data. Furthermore, infrastructure issues, such as inconsistent or weak network coverage in certain geographical areas, continue to hinder transaction efficiency.

The AppotaPay report also echoes these concerns, particularly in light of escalating fraud risks. According to Sumsub’s APAC Identity Fraud Report 2024, the APAC region records some of the highest fraud rates globally, with Indonesia peaking at 6%. This figure is four times higher than the peak rates observed in the US and Canada, which stand at 1.66%.

Government's Vision for a Robust Digital Ecosystem

Looking ahead, SBV’s Pham articulated that the government is resolutely focused on advancing shared digital infrastructure, fortifying payment technology platforms, and diversifying financial services. With digital payments firmly established as a cornerstone of the national digital transformation agenda, the central bank is committed to continuously refining the legal framework, promoting modern services such as domestic cards and e-wallets, and strengthening public-private partnerships to ensure the establishment of a safe, efficient, and truly inclusive payment ecosystem.

These forward-looking initiatives will build upon significant developments already enacted this year, including the introduction of a banking regulatory sandbox and a pilot program for the burgeoning cryptocurrency industry. In July, new regulations were implemented, enabling innovative fintech products to undergo testing within a special regulatory sandbox regime. Fintech solutions deemed eligible for testing encompass credit scoring, open API, and peer-to-peer lending.

In September, Vietnam’s Deputy Prime Minister Ho Duc Phoc signed and issued a pivotal resolution initiating a five-year pilot program for the crypto industry, accompanied by stringent requirements. These comprehensive rules govern the offering and issuance of crypto assets, the organization of crypto-asset trading markets, crypto custody services, and platforms for issuing crypto assets. This landmark move signifies the first instance wherein Vietnam has formally sanctioned crypto trading and related services under a codified legal framework, marking a significant stride towards regulatory clarity in the digital asset space.