Vietnam will soon become a cashless country

That is the affirmation of Mr. Safdar Khan, a veteran member of Mastercard, who has just taken on the role of the Group’s head of emerging markets in Southeast Asia.
According to Nikkei, in Asia, in the battle of electronic payment, Visa and Mastercard are facing many challenges when credit cards seem to be losing to electronic wallets. How does Mastercard comment on this idea and what are the future options?

Mastercard has long supported breakthrough efforts before challenges, instead of choosing to avoid. As a global payment technology company, Mastercard always accompanies Fintech, including e-wallet issuer.

We help Fintech companies move up the new ladder by connecting them with future technology partners, radical solutions and paving the way for creativity.

Like Mastercard, e-wallet companies in particular, Fintech in general has the goal of further expanding the borders, creating space for Fintech to unleash their creativity to create a safe and effective environment. More comfortable for everyone.

In today’s technological world, the way we interact, daily activities have changed dramatically. The rise of Fintech also partly creates an increased efficiency for the work that Mastercard is carrying out in the payment environment.

Together, Mastercard can maintain the goal of ensuring each individual / business has the choice, flexibility and comfort in managing and spending their money anytime, anywhere.

How does Mastercard rate Fintech in Vietnam? Do you have a specific strategy for cooperating with Fintech?

In my opinion, Vietnam has become a Fintech center in ASEAN. In particular, Ho Chi Minh City and Hanoi emerged as the “capital” of Fintech and technology, especially when in 2019, 36% of investment capital in Vietnam flowed into this field.

Many investors consider Vietnam to be a key market for peer-to-peer lending (P2P lending), credit rating and mobile payment …

This is why we want to bring to the market special innovations such as Start Path, Mastercard’s start-up program for startups and Fintech Express, which enable Fintech to accelerate further. near market.

Such initiatives will help promote the growth of Fintech companies, especially small ones.

In the overall picture of the region, how is the growth potential of non-cash payment in Vietnam evaluated? Is there any lesson from the previous market that Vietnam can refer to?

Vietnam is a very attractive market. Just by looking at the numbers below, it’s easy to see why businesses are feeling so excited about joining the market.

As of September 2019, there were 59 million Internet users in Vietnam. According to GlobalWebIndex, 78% of internet users in Vietnam aged 16 – 64 have ever shop online. In 2018, Vietnamese consumers spent nearly 6 billion USD when buying goods online.

Vietnam’s e-commerce market is expected to become the second largest market in Southeast Asia, just behind Indonesia in the next 6 years.

According to the Payment Department of the State Bank of Vietnam, transactions via mobile applications in 2018 increased by 126%, while via e-wallets increased by 161%. This is an impressive growth step.

Notably, the Government has taken measures to promote electronic payment activities, including cards, e-wallets, mobile applications and Internet Banking.

These policies, along with the development of Internet, smart mobile popularization in urban areas, increasing income and consumption, the growth of e-commerce … have created a solid foundation to help. The application of electronic payment methods is further developed here.

However, despite the aforementioned efforts, cash is still favored by consumers and businesses, especially in everyday transactions.

To overcome this, it is necessary to reorient consumers about the need for non-cash payments and practical benefits.

Users need to know how to use electronic payment and why this method is safer and more effective than cash.

In addition, payment technologies should also be developed to help economic organizations expand their operations, able to implement modern payment methods for people living in isolated areas, far.

We have no doubt that Vietnam will soon become a cashless country. That is why Mastercard is actively cooperating with the Government and partners – banks, Fintech, businesses to improve options with electronic payment.