A recent study by Visa reveals that Vietnamese consumers love owning and using electronic payment cards
In countries with developed payment systems – yes, I’m including the US in that too – it’s easy to take something as simple as the plastic payments card for granted. But, over in Vietnam it seems that they’re absolutely loving it – at least, that’s what a recent survey conducted for Visa has shown.
The Payments and Cards Market in Vietnam study reveals that 53 per cent of respondents feel that credit cards make them feel like they’re being smart with money. Furthermore, 38 per cent of respondents cited debit cards, and 30 per cent answered with cash. Clearly cards have taken over in popularity in the region, or at least that’s what 1,200 interviews taken place in Hanoi, Hai Phong, Da Nang and Ho Chi Minh City suggest.
Similarly, credit and debit cards were also seen as ways to do the “right thing” in regards to managing finances.
“These results reflect a very positive outlook for the growth of electronic payments in this rapidly developing market. In an economy that is heavily reliant on cash, these figures are certainly encouraging,” said Lorijon Bacchi, Visa country manager for Vietnam, Cambodia and Laos.
“It’s noteworthy that the figures show consumers in Vietnam acknowledging the inherent disadvantages in relying on cash, with the majority of respondents indicating they felt vulnerable carrying physical money than payment cards. This study also revealed that Vietnamese consumers are becoming much more knowledgeable about card usage and financial management.”
Indeed, the study also revealed that 19 per cent of respondents felt vulnerable when carrying cash, with only four per cent believing the same when carrying a credit card. Interestingly, 42 per cent felt safe carrying credit cards, but only 20 per cent felt safe carrying cash – despite cash being the predominant payment method in Vietnam.
Still, only four per cent of Vietnam’s population own credit cards – compared to the 42 per cent that own debit cards – meaning there’s plenty of room for growth in the region.
“According to another research conducted by Moody’s Analytics, electronic payments added 1.2 billion USD to the GDP of Vietnam between 2008 and 2012. Given that the TNS study points to significant potential for growth within electronic payments in the country, it appears that the time is certainly right to start transitioning the economy through the ‘non-cash decree’ with a view to reduce the country’s reliance on cash,” added Bacchi.
It certainly sounds like Vietnam is a hotbed for payments at the moment, could we see some innovation happening within the region soon?
[Image pas le matin - Flickr]