Vietnam goes digital: cashless payments on the rise!

Vietnam goes digital: cashless payments on the rise!

There is a notable trend towards cashless payments in Vietnam, which has its roots in the increasing use of modern banking services. More and more citizens are opting for digital payment methods, bringing a significant change in the country's payment landscape. Vietnam.vn reports that Ms. Le Phuong Linh from Hanoi has been conveniently processing her taxes and school fees via a bank app for over a year. This development is supported by the implementation of QR codes on fee notices, which make the tuition payment process much easier.

Another trend can be seen among small traders in Vietnam. Ms Pham Thi Thinh reports that up to 90% of her payments are made cashless via QR codes. Such convenient payment solutions are becoming increasingly popular while demonstrating the high growth rate of cashless payments of over 50% annually in the country. According to HDBank, 94% of individual customer transactions in Vietnam are predicted to be digital by 2024.

Future prospects and security in payment transactions

Responsibility for payment security is increasingly in the hands of technology providers, making combating high-tech crime a challenge. Interestingly, NAPAS plays a pivotal role in developing cashless payment habits in Vietnam. In addition, the VietQR system enables cashless payments in several Asian countries, strengthening cross-border trade ties.

Similar to the trends in Vietnam, the Bundesbank is also intensively concerned with the future of payment transactions in Germany. Bundesbank.de mentions that Digitalization as a global megatrend has a significant impact on payment transactions. Not only banks, but also new competitors such as Fintechs and BigTechs are revolutionizing the customer experience and driving forward innovative payment methods.

The role of the digital euro

Another important point is the introduction of the digital euro, which is intended to complement cash and at the same time ensure data protection and security. Access to the digital euro should be ensured for all citizens. The European Commission and the Eurosystem are working to make instant payments a standard in payments, which could further spur the development and implementation of new technologies.

Developments in both Vietnam and Germany show that cashless payments and digital currencies have the potential to sustainably change the future of payments. While Vietnam is already making notable progress, the situation in Europe remains dynamic as institutions work to regulate and implement innovative payment solutions.