E-payments,

e-wallet and
the future of
payments
Ho Chi Minh city, 19th April 2019
Non-cash payment forms

Bank card E - payment

QR CODE
PIN PIN

PAYMENT
GATEWAY

CHIP NFC
QR CODE

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Key players in e-payment sector
Mixed model

E-wallet Payment
gateway

3
Banks launch own applications

4
Opportunity for e-payments

Internet usage in Vietnam has reached 67%. Internet economy reach

US$9 billion in 2018, account for 3.8% GDP.

85% smartphone penetration amongst adults 15+.

Proactive support from the government creates favorable conditions to

foster and develop supply side e-payment services in Vietnam.

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500 people surveyed

Men and women HCMC and Hanoi

500
interviews

18-55 Class ABC

Household income more than VND9,000,000

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3 in 10 using mobile – an app or a wallet

Incidence of non-cash payment forms in past 3 months

(%)
36 34
30 29
25 25 26
23
20
16
14
12

Total HCM Hanoi

Base 204 103 101
Debit Credit Mobile banking app E-wallet

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 E payment users mostly paying periodical bills and mobile phone top up

59

38 40
34 33
28
Incidence of
12
transactions in P3M (%)

Periodical bills Online Offline Money transfer Mobile phone Ride hailing Food delivery
purchase purchase top-up

How to pay (%)

By cash 29 29 33 0 21 46 54
By non-cash 71 71 67 97 79 54 46
Debit card 16 22 35 22 19 15 9
E-wallet 13 17 12 19 28 19 30
Mobile banking app 23 16 6 45 27 9 0
Bank transfer 13 9 3 11 2 4 1
Credit card 3 5 11 1 2 7 6
Standing order 4 3 0 0 0 0 0

Amongst past 3 month e-payment users only

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Consumer experience

9
E-wallets recognized for promos
UX is strong for both e-wallets and bank apps
PRO CONS

• A lot of rewards, promotion & deals • Not secure

• Competitive fee • Not many accepted place
• Ability to pay a wide range of • Customer care system is slow.
E-wallet
category • Brand reputation
• Smooth UX & UI experience

• Smooth UX • Lack of promotion & deals

Mobile banking app

• Large network of accepted places • Lack of promotion & deals

• Brand reputation • Narrow range of category to pay
Bank cards • Easy to cash in/ cash out • High fee
• Slow payment process

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E-wallet far outperforms other methods on the Net Promoter Score

Mobile Payments Bank cards

E-wallet Mobile banking app Credit card Debit card

NPS = 48 NPS = 28 NPS = 25 NPS = 25

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 Mobile payment

E-wallet vs. mobile banking app

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Consumer strongly motivated by promotions from e-wallets

Things that mostly make consumer satisfied

E-wallet NPS = 48

Mobile banking app NPS = 28

Both need to improve the stability of app.

Mobile banking app need to simplify the registration process.

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8 in 10 people aware, 3 in 10 use in the past 3 months

29
E-wallet
awareness and
past 3 month
incidence
(%)

80

Awareness
Incidence

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 Momo is the leading e-wallet

Momo ZaloPay VTPay / ViettelPay Grabpay AirPay

by Moca

Total brand awareness 88% 63% 54% 51% 46%

E-wallet ever installed 59% 67% 24% 37% 11% 20% 13% 26% 6%

Current install e-wallet 46% 77% 11% 45% 3% 31% 6% 48% 3%

Most often e-wallet 42% 91% 5% 46% 2% 44% 3% 42% 1%

Momo claim they reach 10 millions users. 6 of 10 is currently active.

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Momo outperforms two popular mobile banking apps

Momo Vietcom bank app Techcombank app

NPS = 53 NPS = 36 NPS = 47

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Who will win?

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E-wallets - a fintech fad or here to stay?

E-wallet Frenemy? Mobile banking app

friend enemy

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 Will bank apps kill e-wallets? Can they match consumer centricity?

E-wallet Mobile banking app

• A lot of rewards, promotion & • Reputation

deals • Smooth UX
Consumer • Competitive fee
perspective • Ability to pay a wide range of
category
• Smooth UX & UI experience

Business • Technology focus • Bank account penetration has

• Flexibility been largely driven by salary
perspective • Ability to expand network transactions
• Could be a solution for • IBPS (Institute of Banking
unbanked sector Personnel Selection) linked
• Micro transaction most of bank user

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Could e-wallets become a distribution and marketing channel for banks?

▪ Tech led consumer centricity that banks can never catch?

▪ A bridge for banks to penetrate the unbanked?
▪ A focus on micro transactions?

Unbanked sector

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Will a dominant player win?

Momo burn a lot of money to have people try it, how long can this
spend be sustained?

Already the leader for their messenger application, but why not the e-
wallet?

Already in every Samsung phone, but why not the leader?

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Will one player prevail in a larger eco-system?
A supper app like We Chat in China?

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Which is the most possible scenario?

1. Bank mobile app will kill e-wallets. 3. An e-wallet will dominate and win.

2. E-wallet will be a distribution and marketing 4. An e-wallet will become a sing all-in-one super
channel for banks. app (e.g. Wechat in China).

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ask@cimigo.com
Cimigo
217 Dien Bien Phu Street,
Binh Thanh District, HCMC, Vietnam
T: +84 28 3822 7727

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