Looking back at Vietnam's e-wallet market Part 2 - ZaloPay Rebrands and the Race Continues Despite Moca's Departure
On July 2nd, a highly anticipated event in the fintech world took place: the grand rebranding ceremony of ZaloPay. This event not only marks the rapid development of the ZaloPay e-wallet but also introduces fresh and youthful directions for its future.
This also marks a turning point that ushers in a new era of competition in the already fierce e-wallet industry, causing many major players to withdraw from the game, such as the recent exit of the Moca e-wallet despite its significant backing from Grab.
In this article, let's join FinFan in analyzing two stories: the remarkable development of ZaloPay and the decline of the Moca e-wallet, to paint a comprehensive picture of the current e-wallet market in Vietnam.
Recap of the ZaloPay Brand Identity Change Event
On July 2nd, a highly anticipated event in the fintech world took place: the grand rebranding ceremony of ZaloPay. This event not only marks the rapid development of the ZaloPay e-wallet but also introduces fresh and youthful directions for its future.
With its new design and interface, ZaloPay promises to deliver a better user experience. This demonstrates ZaloPay's continuous efforts to innovate and meet the growing demands of customers in a highly competitive e-wallet market.
With new development strategies and a brand overhaul, ZaloPay aims not only to be a regular e-wallet but also an indispensable part of users' daily lives. This rebranding event will undoubtedly be a stepping stone for ZaloPay to advance further in its development journey and affirm its position in the fintech sector.
Recap of the Moca E-Wallet's Shutdown
The shutdown of the Moca e-wallet represents a significant shift in the Vietnamese e-wallet market. Despite receiving substantial support from Grab, Moca struggled to compete in an increasingly crowded landscape.
The e-wallet industry in Vietnam has been growing rapidly, with numerous players vying for market share and offering innovative features to attract users. Moca's exit highlights the challenges faced by e-wallets in maintaining relevance and profitability amidst intense competition and changing consumer preferences.
The withdrawal of such a prominent player underscores the volatility of the fintech sector and the need for continuous adaptation and innovation to thrive in this dynamic market.
Some Statistics Indicating the Fierce Competition in the E-Wallet Market in Vietnam
Revenue has increased
According to the latest report from Vietdata, most of the revenue of the top 5 best well-known e-wallet service providers have shown a growing trend from 2020 until the end of 2023, with:
- VNPay's revenue surged from VND 17.5 trillion to VND 30 trillion in 2022, and reached VND 31 trillion in 2023. This growth is attributed to VNPay's extensive coverage, benefiting from the VNPAY ecosystem with over 350,000 payment acceptance points. The multi-functional ecosystem has significantly increased VNPay's market presence.
- MoMo's revenue increased from VND 6.2 trillion to VND 8.5 trillion from 2020 to 2022, and then reached VND 9.4 trillion in 2023.
- Shopee Pay marked a significant increase from 2020 to 2022, driven by the surge in online shopping (affected by COVID-19). The revenue of this e-wallet, associated with the largest e-commerce platform in Vietnam, grew from VND 3.5 trillion in 2020 to VND 7.1 trillion in 2022. However, due to the impact of the global financial crisis in 2022-2023, Shopee's revenue stalled and even declined to VND 6 trillion.
- VNPT Pay experienced strong growth, rising from VND 3.6 trillion in 2020 to over VND 5 trillion in 2022. However, the growth momentum of this e-wallet began to slow down in 2023, with revenue reaching just VND 5.1 trillion.
- Lastly, ZaloPay, which recently launched its rebranding event as mentioned earlier by FinFan, also showed impressive revenue growth, rising from VND 100 billion to VND 500 billion in 2022, and reaching VND 800 billion in 2023.
But the Company may not necessarily be profitable.
However, behind those staggering revenue figures, not all e-wallet companies reported profits when:
- MoMo has incurred cumulative losses from 2020 to 2023, although it has somewhat reduced its losses due to attracting a significant number of users (accounting for more than 50% of the e-wallet market share in Vietnam).
- In the same situation as MoMo is ZaloPay, which, despite an impressive rebranding launch on July 2, has also reported negative profits from 2020 to 2023 according to data from Vietdata.
The Fierce Competition in Vietnam’s E-Wallet Market: An In-Depth Look
The e-wallet market in Vietnam is rapidly evolving, marked by an intense competition that is reshaping the landscape of digital payments in the country.
With the increasing adoption of technology and a growing appetite for cashless transactions, e-wallets have become a key player in Vietnam's fintech revolution. However, the competition among these digital wallets is anything but tame.
A Surge in Demand
The Vietnamese e-wallet market has witnessed a significant surge in consumer demand, driven by a combination of convenience, technological innovation, and the push towards a cashless society.
E-wallets offer an array of features—from seamless transactions and bill payments to financial management tools—that cater to the needs of modern consumers. As more people embrace digital payments, the market has become a hotbed for competition among various e-wallet providers.
The Competitive Landscape
In this crowded market, companies are vying for attention with innovative features and aggressive marketing strategies.
Major players like MoMo, ZaloPay, and VNPay are constantly upgrading their platforms to offer superior user experiences. New entrants and startups are also making their mark, introducing unique value propositions and specialized services to attract niche segments of the market.
The competition is further fueled by the involvement of large tech companies and financial institutions.
For instance, Grab’s acquisition of Moca and its subsequent integration into its ecosystem highlights the growing influence of tech giants in the e-wallet space.
These industry giants bring substantial resources and customer bases, adding another layer of complexity to the competitive dynamics.
Challenges and Strategies
The fierce competition poses several challenges for e-wallet providers. Maintaining a competitive edge requires continuous innovation, strategic partnerships, and an acute understanding of consumer preferences.
Companies must invest in technology to enhance security, streamline user interfaces, and offer value-added services that differentiate them from competitors.
Moreover, the rapid pace of change in the fintech sector means that e-wallet providers must be agile and adaptable.
They need to keep up with emerging trends such as QR code payments, cryptocurrency integration, and advanced financial services. Successful e-wallets are those that not only meet current consumer needs but also anticipate future demands.
The Impact of Competition
While intense competition can be challenging for companies, it ultimately benefits consumers.
As e-wallet providers strive to outdo each other, users gain access to a wider range of services, better user experiences, and more attractive offers.
This competitive environment fosters innovation and drives improvements across the board, leading to a more robust and efficient digital payment ecosystem.
Looking Ahead
The Vietnamese e-wallet market is set to continue its rapid growth, with competition remaining a key driver of development.
As technology advances and consumer expectations evolve, e-wallet providers will need to stay ahead of the curve. The ability to adapt and innovate will be crucial for success in this dynamic and competitive market.
FinFan Connection with these E-Wallet Service Providers
As a fintech company specializing in partnerships with international partners such as Remitly, Sendwave, Ria Money Transfer, Paysend, MoneyGram, etc., FinFan aims to bring cross-border payment solutions to Vietnam that are “Faster - Safer - More Cost-Effective”.
FinFan continuously strives to connect and become a strategic partner with e-wallets, especially major e-wallets in Vietnam such as VNPay, ZaloPay, MoMo, etc.
Read more:
. The Relationship Between Leading operated as E-Wallets Payment Gateways for E-commerce and FinFan
Conclusion Regarding The Fierce Competition in Vietnam’s E-Wallet Market after ZaloPay’s Rebranding Event and the Quitting of Moca
The e-wallet market in Vietnam is undergoing a period of rapid transformation, characterized by intense competition and dynamic changes. The recent rebranding of ZaloPay and the exit of Moca underscore the volatility and fierce nature of this industry.
In conclusion, the e-wallet market in Vietnam remains highly competitive, with both opportunities and challenges ahead. Companies must navigate a complex landscape of rapid growth, technological innovation, and external economic pressures.
The recent developments with ZaloPay’s rebranding and Moca’s exit provide valuable insights into the strategies and dynamics that will shape the future of this vibrant sector.
As the market continues to mature, only those who can effectively balance growth with profitability and strategic agility will emerge as long-term winners.
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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