Vietnam’s Mobile Money Market Reaches 1.1 million Users

, Vietnam’s Mobile Money Market Reaches 1.1 million Users

The Ministry of Information and Communications of Vietnam confirmed there are about 1,096,245 customers using the Mobile Money service after 4 months of piloting the program in Vietnam. The statistics showed that there are 659,237 customers from rural areas, villages, mountainous as well as remote areas and islands. The overall transactions reached to 8.4 million with a total value of VND 371 billion.

This was a significant achievement after Vietnam reported more than 463,000 people using Mobile Money service in the country. The Vietnamese government has issued new decree on the Cashless Payment Development Scheme for the period 2021-2025 replacing Decree 101/2012/ND-CP, it is considered as an important phrase of piloting Mobile Money service with a purpose to encourage the cashless payment methos in Vietnam, especially promoting a cashless society, rural and remote areas.

Previously, the State Bank of Vietnam has just approved a trial license of Mobile Money for major carriers such as VNPT, MobiFone and Viettel and this makes Vietnam to become a potential market of Mobile Money payment platform in Asia. In November 2021, Fitch Solutions published an article showing that MobiFone, Vietnam’s third-largest mobile operator, has operated over a two-year pilot scheme and this allowed “users to make online payments and transfer money online via their mobile account” and they argued Vietnam’s Mobile Money Market in on the rise  Similarly, after the State Bank approve the license, Vietnam Posts and Telecommunications Group (VNPT) quickly announced the provision of Mobile Money service across the nationwide.  The Military Telecommunications Industry Group (Viettel) then announced the launch of the Viettel Money digital financial ecosystem to all their customers using Viettel mobile networks nationwide. The fact that these operators offering pilot Mobile Money services is designed to promote the cashless payments in the country. It is clear Vietnam is now speeding up a national digital transformation for its society and citizens. According to operator VNPT, the potential of Mobile Money market is enormous due to 60% of the Vietnamese population lives in rural areas or urban, but most of businesses accept non-cash payments.

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The implementation will also help Vietnam to accelerate the process of financial digitization so that no one is left behind the digital age and financial services. This is a key issue helping Vietnam’s economy to move on, creating opportunities to build up the digital age in the community and promoting the financial services make transactions faster and more efficiently in all geographical and economic areas in the country. Vietnam is entering in the digital age and one of the prerequisites for successful digital transformation is cashless payments. Mobile Money services would help to reduce the digital gap between urban and rural areas and amid the negative impact of Covid 19 pandemic, it will be an effective solution for the economic recovery and future development in the country.

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