3 New Growth Potentials for Domestic Payments and Cross-Border Payments Markets of E-Wallets in Vietnam

The e-wallet landscape in Vietnam is poised for significant transformation as new regulations concerning e-wallet opening come into effect.

Additionally, the increasing recognition of e-wallets as being on par with bank accounts and cards opens up new avenues for growth.

Here are three key growth potentials for e-wallets in Vietnam's near future:

The Latest Updates on E-Wallets in Vietnam

Here are the latest updates on e-wallets in Vietnam:

New Regulations on E-Wallet Opening

One of the most important changes is the new regulations related to the opening of e-wallets.

These regulations aim to streamline the process, making it easier and more secure for users to open and use e-wallets.

The government is focusing on enhancing security measures to protect users' financial information while encouraging more people to adopt digital payments.

More details about these new regulations here

E-Wallets on Par with Bank Accounts and Cards

Recent developments have positioned e-wallets on par with traditional bank accounts and cards.

This recognition not only boosts consumer confidence in using e-wallets but also allows for broader applications in everyday transactions.

E-wallets are now seen as viable alternatives to traditional banking methods, which could lead to increased adoption across various demographics.

Integration with New Technologies

E-wallet providers in Vietnam are increasingly integrating cutting-edge technologies such as artificial intelligence (AI) and blockchain to enhance user experience and security.

These innovations are helping to build a more robust digital payment ecosystem, making e-wallets more attractive to both consumers and businesses.

3 New Growth Potentials for Domestic Payment Market of E-Wallets in Vietnam

Here are three key growth potentials for e-wallets in Vietnam:

Expansion of Financial Inclusion

With the new regulations simplifying the process of opening e-wallets, there is potential for broader financial inclusion, especially among the unbanked and underbanked populations.

E-wallets can serve as a gateway for these groups to access digital financial services, including savings, credit, and insurance, which were previously out of reach.

This could lead to a significant increase in e-wallet adoption, particularly in rural and remote areas where traditional banking infrastructure is limited.

Enhanced Consumer Trust and Adoption

The new regulations are likely to bring stricter compliance and security standards for e-wallet providers, which can enhance consumer trust.

As e-wallets gain parity with traditional bank accounts and cards, consumers may become more comfortable using them for a wider range of transactions, including salary payments, bill payments, and online shopping.

This increased trust and wider acceptance can drive the adoption of e-wallets as a primary payment method, especially among younger, tech-savvy users.

Synergies with Traditional Banking

As e-wallets achieve parity with bank accounts and cards, there is potential for greater collaboration between e-wallet providers and traditional banks.

This could lead to the development of hybrid financial products that combine the flexibility and convenience of e-wallets with the established trust and reliability of traditional banking services.

For instance, users might seamlessly transfer funds between their bank accounts and e-wallets, access integrated loyalty programs, or enjoy enhanced financial management tools that leverage the strengths of both platforms.

3 New Growth Potentials for Cross-Border Payment Market of E-Wallets in Vietnam

E-Wallets Could Become a Payment Method for Cross-Border E-Commerce Platforms Instead of Bank Cards

With the regulation placing e-wallets on par with bank accounts or bank cards under Decree No. 52/2024/ND-CP on cashless payments, effective from July 1, 2024, and the State Bank of Vietnam issuing Circular 40/2024/TT-NHNN, effective from July 17, 2024, on the provision of intermediary payment services, there has been a significant impact on intermediary payment service providers.

E-wallets can now fully replace traditional payment methods such as bank cards or bank transfers on international e-commerce platforms if integrated by a third-party payment gateway intermediary like FinFan.

At this point, users who are accustomed to using e-wallets for payments will be able to fully pay for products they have ordered from international markets or use e-wallets as a tool to receive international payments for goods they have exported on international e-commerce platforms like Amazon, eBay, Etsy, Alibaba, and others in a “Faster - Safer - More Cost-Effective” way.

E-wallets can replace Banks in the Context of Receiving Cross-Border Remittances

With e-wallets being placed on par with other banking payment methods, they can fully become a channel for receiving international remittances to Vietnam and perform other functions similar to a real bank channel, such as: depositing savings, investing, paying living expenses, tuition fees, etc., for recipients in Vietnam.

Through the use of an ewallet aggregator, FinFan can address this issue by integrating APIs with leading e-wallets in Vietnam such as MoMo, ZaloPay, VNPay, VNPT Money, Viettel Money, FPT Pay, etc.

E-wallets can integrate AI to manage funds transferred from abroad to Vietnam.

As digital payment solutions continue to evolve, the integration of Artificial Intelligence (AI) into e-wallets presents exciting opportunities, particularly in the realm of managing international funds transferred to Vietnam.

Here’s how AI can transform the way e-wallets handle cross-border remittances and enhance financial management for users.

Enhanced Fraud Detection and Security

One of the most significant advantages of integrating AI into e-wallets is its capability to enhance security.

AI algorithms can analyze transaction patterns in real-time to detect anomalies and potential fraud.

For international funds transfers, this means e-wallets can better safeguard against fraudulent activities and ensure that the remittances are secure from unauthorized access.

AI's ability to learn and adapt to new fraud patterns ensures that security measures remain robust and effective.

Optimized Currency Conversion

Managing international funds often involves dealing with multiple currencies. AI can streamline this process by optimizing currency conversion rates.

By analyzing historical data and real-time market trends, AI can provide users with the best exchange rates and reduce conversion fees.

This capability ensures that recipients in Vietnam receive the maximum value from their international transfers, making e-wallets a more cost-effective option for managing cross-border remittances.

Personalized Financial Insights

AI can offer personalized financial insights based on the user's transaction history and spending patterns.

For individuals receiving international remittances, this means AI can provide tailored advice on budgeting, saving, and investing.

By analyzing income from remittances and expenditures, AI can help users make informed decisions about their finances, identify saving opportunities, and even suggest suitable investment options.

Automated Compliance and Reporting

Cross-border transactions are subject to various regulatory requirements and reporting standards.

AI can automate compliance processes by monitoring transactions for adherence to local and international regulations.

This includes generating reports for regulatory bodies, ensuring that all necessary documentation is in place, and reducing the administrative burden on users and e-wallet providers alike. Automation helps in maintaining transparency and avoiding legal issues.

Improved Customer Support

AI-powered chatbots and virtual assistants can significantly enhance customer support for e-wallet users.

These AI tools can handle queries related to international funds transfers, provide instant assistance, and guide users through the process.

By offering 24/7 support, e-wallet providers can ensure that users have access to help whenever they need it, leading to a better overall experience.

Conclusion Regarding 3 New Growth Potentials for Domestic Payments and Cross-Border Payments Markets of E-Wallets in Vietnam

The future of e-wallets in Vietnam is bright, with immense potential for growth in both domestic and cross-border payments.

As e-wallets evolve to offer a wider range of financial services, integrate with global payment solutions, and embrace new technologies, they are set to become a central component of Vietnam's digital economy.

By leveraging these growth potentials, e-wallet providers can position themselves at the forefront of the financial technology revolution, driving innovation and enhancing financial inclusion across the country.

This article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

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