The days of cash remaining king may soon be numbered. Card payments in Vietnam are set to grow at a compound annual growth rate (CAGR) of 17.8 per cent to hit 522.5 million transactions by 2023, GlobalData said in a report.
The data and analytics company's Vietnam Cards & Payments: Opportunities and Risks to 2023 report said the number of card payments increased more than fivefold in the last five years, from 56 million in 2015 to 271 million in 2019.
"While Vietnam remains a cash-based society, the government’s financial inclusion initiatives, the emergence of digital-only banks, improved payment infrastructure and the adoption of new payment card technologies have led to the growth of card-based payments," Kartik Challa, payments analyst at GlobalData, said.
The report noted that the expansion of banking infrastructure and the licensing of non-bank companies to offer payment services in rural areas were also instrumental in driving the consumer shift towards electronic payments.
Recently, the government approved a scheme to encourage bank payments for public services, as part of overall aims to bring 70 per cent of the adult population under the formal banking system by 2020. World Bank figures from 2017 showed that only 30.8 per cent in Vietnam have bank accounts.
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