How government policy is fueling Vietnam’s cashless revolution

Once a firmly cash-dominant nation, Vietnam is undergoing a remarkable, state-backed transformation into a cashless society. This shift, driven by a confluence of innovative technology, an energetic fintech ecosystem, and proactive government policy, has positioned digital payments as one of the most dynamic drivers of the country’s economy.

The scale of this cashless boom is staggering. Cashless payment transactions have soared to a value equivalent to 26 times the country’s GDP in 2024. Data from the State Bank of Vietnam (SBV) confirms this rapid acceleration, showing that cashless payment transactions have grown at an average annual rate of over 67% since at least 2021. Furthermore, a significant majority of Vietnamese consumers (59%) now express a preference for cashless payments.

The current boom is primarily fueled by two key innovations: standardized QR codes and Account-to-Account (A2A) payments.

QR codes have emerged as the favored payment method, with 62% of consumers using them to transact frequently. They represent the fastest-growing segment, with transaction volumes surging by over 106% and value by 84.8% in the first 11 months of 2024. This method is favored for its convenience, speed, and low transaction cost, making it ubiquitous from major shopping centers to street vendors.

Account-to-Account transfers, often processed instantly through the National Payment Corporation of Vietnam (NAPAS) system, have also seen a rapid surge. NAPAS, which processes around 35–36 million transactions daily, provides the foundation for Vietnam’s real-time payment network.

The rapid digital uptake is underpinned by strong enabling factors:

A Mobile-First Population: High smartphone penetration—exceeding 100 million users—and expanded 4G infrastructure have created an ideal environment for digital payment adoption.

The Rise of Super Apps: Digital wallets like MoMo, ZaloPay, and ViettelPay are transforming consumer behavior. MoMo, the leading digital wallet, serves over 30 million users and has evolved into an AI-powered financial super app. Crucially, MoMo allows users to load cash directly, bypassing the need for a linked bank account, which is a key factor in improving financial inclusion for unbanked and rural users.

Digital Inclusion Success: These efforts have resulted in 86.97% of adults holding a bank account by the end of 2024, signaling significant progress toward a more inclusive financial system.

The transition is far from organic; it is a top-down mandate driven by the government’s vision to build a comprehensive digital economy. The government’s goal is to reduce cash transactions to less than 10% of total payments.

The SBV and NAPAS have taken the lead in unifying the fractured payment landscape through VietQR, the national standardized QR code system. The State Bank has also worked to refine the legal framework by introducing new laws on electronic transactions, data protection, and establishing a fintech sandbox mechanism to encourage innovation and partnership between banks and fintech firms. This regulatory support is crucial for sustaining confidence among consumers and investors alike.

While the momentum is strong, Vietnam’s digital payment push faces several critical hurdles:

Security and Trust: Cybersecurity remains a persistent challenge, with a reported rise in financial fraud cases related to digital payments. Concerns over data protection and privacy issues are key barriers that still cause consumer reluctance.

The Digital Divide: Despite national plans, uneven digital infrastructure remains a problem. Weak or unstable network coverage in some rural areas limits the reach and efficiency of digital payment services, impeding financial inclusivity for those in less urbanized provinces.

Financial Literacy: A significant portion of the population lacks adequate financial literacy, creating a knowledge gap that must be addressed to ensure widespread and secure adoption of e-wallet functionalities and security protocols.

Vietnam’s cashless boom is a powerful case study of how concerted government policy combined with rapid technological adoption can swiftly transform a nation’s financial landscape. With cashless volume reaching 5.5 billion transactions in Q1 2025 and the country’s digital economy projected to reach USD $52 billion by 2025, the momentum is undeniable.

By continuing to prioritize infrastructure development, strengthening cybersecurity, and fostering public trust, Vietnam is set to solidify its position as one of the fastest-growing and most dynamic digital payment markets in Southeast Asia. The nation’s journey toward a cashless future is more than a story of convenience; it is a fundamental pillar of its long-term digital economy vision.