Many countries in Southeast Asia are currently experiencing rapid expansion in the E-commerce sector, not only locally but globally as well. With an expected value of more than $10 billion by 2021, Vietnam is one of the Southeast Asian nations that is also boosting its visibility in the E-commerce business. Vietnam's leading online payment service providers are PayCly, Tiki, Adayroi, etc.
The credit of online businesses goes to the 68.72 million active internet customers in Vietnam who regularly engage in online activity and use digital payment methods. According to JP Morgan reports, 34% of people in Vietnam utilize cards, 19% use digital wallets, and 22% use bank transfers.
Due to the advantages of convenience and safety compared to the hazards of disease transmission through currency, online payment systems have flourished in Vietnam. Numerous local banks and intermediary payment service providers have provided promotions to encourage local consumers to shop online.
Here, in this blog, we will discuss "Payment Gateway Vietnam."
Reasons for the Trend of Digitalization of Finance And Payment in Vietnam
One of the fastest-growing areas is related to financial products and services. For instance, Nguyen Thi Hong, manager of SBV (State Bank of Vietnam), claims that many regional banks conduct 90% of their business through digital channels, exceeding the objective of 70% set for 2025.
Such a transformation is crucial, and the government actively favours it. The prime minister of Vietnam and chairman of the National Committee on Digital Transformation lauded the banking industry for its efforts to transform itself digitally through various products and services for consumers and businesses. Such efforts are considered and actively backed at the most fundamental levels.
Below are some of the reasons for the trend of digitalization of finance and payment in Vietnam
- The popularity of mobile devices: Internet connection is now available to many people because of the spread of mobile devices. Vietnam ranked in the top 10 countries worldwide for the number of mobile devices in use in 2021, with 61.3 million units. Unsurprisingly, this has significantly impacted people's lifestyles, giving them instant access to various services and increasing their need for them to do a variety of tasks.
- Young generation: Today, the young generation is addicted to mobile devices for various tasks. In Vietnam, the median age is approx. 33, and more than 65% of the population is under 45. So, it is a massive market for enterprises and investors.
- Covid-19 Pandemic: In Vietnam, Covid-19 also plays an important role in driving the digitalization of finance and payments in Vietnam. In response to the pandemic, the Vietnamese government implemented several policies to encourage cashless transactions and discourage cash use. For instance, it gave discounts on electronically paid utility bills and waived fees for certain platforms' online payment methods.
Top Payment Methods In Vietnam
In Vietnam, online businesses are flourishing. Before starting an online business in Vietnam, the merchant needs to gain little knowledge about the Vietnam customer's preferable payment methods. Let's look at some of the most popular payment methods in Vietnam.
- Card Payments – Making online payments through credit cards is one of Vietnam's most popular payment methods. Card Payment is approx 34%. Some of Vietnam's most popular credit cards are Visa, MasterCard, JCB, American Express, etc.
- Bank Transfer – Today, most Vietnam customers prefer bank transfers to make payments. 22% of all online transaction is made via bank transfer. Bank Transfer is one of the most convenient payment methods in Vietnam. The customer has to visit their nearby ATMs or open an APP on their phone or computer.
- Digital Wallets – Gradually, digital wallets are getting more popular in Vietnam. Almost 19% of online payments are made through some of the most popular e-wallets. The reason behind the popularity of this payment method is customers can make payments at any time from anywhere. It just needs a good internet connection and a smartphone.
- Cash Payments – The most basic payment method in Vietnam is cash payment. It takes approx 19% of e-commerce payments.
Today, you can get many payment service providers in Vietnam, but not all are suitable for all types of businesses. For example, if you are running a high-risk business, look for a payment service provider that offers a high-risk payment gateway and a high-risk merchant account.
Before making any of the decision, make sure that your chosen payment gateway in Vietnam have the following features -
- Various Currency Support: As you know, Vietnam is a rapidly growing economy, so the merchant needs to look for a payment gateway that supports multi-currency. It helps merchant to expand their business at the global level.
- Multiple Payment Methods: Today, every customer prefers the options, and if they do not get their preferred payment options, they can easily switch to some other sites. Before making any decision, it is important to know your customer preferable payment method and your payment gateway must supports that payment mode. Some of the most popular payment options we have already discussed above.
- Market Integration: Integrations with the market are yet another feature to look for in a payment gateway. Can the provider be integrated with well-known e-commerce platforms? Setting up and running your online store will be simpler as a result. Some service provider also provide extensions or plugins.
- Security: Today, every payment gateway comes with PCI DSS compliances. For any payment gateway, security is the top priority. Always go with the service provider that offers futuristic security tools, including – SSL encryption, fraud detection, and prevention tools, anti-chargeback tools, etc. Also, look for the customer support of the service provider.
PayCly is the Best Option in Vietnam's
Among all the service providers in Vietnam, PayCly is one of the best. As "PayCly," we are one of the leading and most popular payment service providers worldwide. It is suitable for all types of businesses, especially high-risk enterprises. It is a complete solution. The merchant can get the high-risk gateway, merchant account, and credit card processing on one platform.
PayCly offers many benefits which help merchants grow their business at the international level; as a result, merchants can gain more and more profits. Some of the best benefits of using the PayCly as a payment gateway in Vietnam are -
- It supports multi-currency from all over the world.
- It offers various payment modes, including crypto-currency, alternative payment modes, mobile payments, net banking, card payments, and many more.
- Easy to integrate on websites.
- It offers 24*7 customer service.
- It covers all the PCI DSS issues and offers futuristic security tools like anti-fraud and anti-chargeback tools.
- The pricing structure is very simple and affordable.
Final Thoughts -
Vietnam is one of the fastest-growing countries in Southeast Asia. Approx. Forty million online customers are active here. In the upcoming year, it will become the hub of online businesses. So, the merchant needs to offer their consumer reliable, secure and fast payment solutions.
Today, you can get many service providers in Vietnam, but not all are suitable for all types of businesses. So, be careful while choosing your service provider.
We recommend you choose PayCly as your payment gateway in Vietnam. It offers you complete solutions and also helps you to grow your business at an international level. With PayCly, the merchant can hassle-free concentrate on their business growth rather than other things.
Feel free to contact the expert team anytime through email or live chat.