Cash still dominates transactions in Vietnam: Standard Chartered

Cash on delivery (COD) for internet purchase amounts to 90.17 per cent of the total in Vietnam.

The “Cash Digitisation in ASEAN” report shows that cash on delivery (COD) for internet purchase accounts for 90.17 per cent of the total in Vietnam while bank account and credit card ownership hold 30.80 per cent and 4.12 per cent, respectively.

The paper also highlights around 20 e-wallet applications currently operating in Vietnam, notably Vi Viet, Zalo Pay, 123Pay, Bankplus, MoMo, and Wepay.

Standard Chartered puts high hopes on the future development of e-wallet payments in Vietnam thanks to an initiative aimed at boosting non-cash payments and cutting down the cash transaction ratio to below 10 per cent during the 2016-20 period.

Many foreign operators such as Samsung Pay, Alipay, and Amazon have reportedly entered the local market in order to tap into the growing potential.

Many ASEAN member countries are also in the same situation. Cash payments make up more than 70 per cent of transactions in the Philippines and Indonesia, and 43 per cent in Singapore.

Aside from Singapore which held a ‘stand out’ spot in the Digital Evolution Index 2017 by Tufts University and Mastercard, traditional means of banking and payments remain quite popular in the rest of ASEAN.

Hence, significant potential exists for the development of the digital banking infrastructure in ASEAN.

As new technologies transform business operations and banking services, digital solutions are believed to increasingly redefine the way corporate treasuries operate within the financial system.

In the digital age, treasurers which embrace and adopt new technology will drive greater efficiency and business alignment.