e-payments,...internet usage in vietnam has reached 67%. internet economy reach us$9 billion in...
TRANSCRIPT
E-payments,
e-wallet and
the future of
payments
Ho Chi Minh city, 19th April 2019
Non-cash payment forms
2
Bank card E - payment
CHIP NFC
QR CODE
QR CODE
PIN PIN
PAYMENT
GATEWAY
Key players in e-payment sector
3
A
A
E-wallet Payment
gateway
Mixed model
4
Banks launch own applications
Opportunity for e-payments
5
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.
500 people surveyed
6
Men and women HCMC and Hanoi
18-55 Class ABC
500
interviews
Household income more than VND9,000,000
3 in 10 using mobile – an app or a wallet
7
1412
16
2320
26
30
25
36
29
25
34
Total204
HCM103
Hanoi101
Debit Credit Mobile banking app E-wallet
Incidence of non-cash payment forms in past 3 months
(%)
Base
E payment users mostly paying periodical bills and mobile phone top up
8
29
71
16
13
23
13
3
4
29
71
22
17
16
9
5
3
33
67
35
12
6
3
11
0
0
97
22
19
45
11
1
0
21
79
19
28
27
2
2
0
46
54
15
19
9
4
7
0
54
46
9
30
0
1
6
0
By cash
By non-cash
Debit card
E-wallet
Mobile banking app
Bank transfer
Credit card
Standing order
59
3828
3440
12
33
Periodical bills Onlinepurchase
Offlinepurchase
Money transfer Mobile phonetop-up
Ride hailing Food delivery
Incidence of
transactions in P3M (%)
How to pay (%)
Amongst past 3 month e-payment users only
Consumer experience
9
E-wallets recognized for promos
UX is strong for both e-wallets and bank apps
10
• A lot of rewards, promotion & deals
• Competitive fee
• Ability to pay a wide range of
category
• Smooth UX & UI experience
• Not secure
• Not many accepted place
• Customer care system is slow.
• Brand reputation
• Smooth UX • Lack of promotion & deals
• Large network of accepted places
• Brand reputation
• Easy to cash in/ cash out
• Lack of promotion & deals
• Narrow range of category to pay
• High fee
• Slow payment process
PRO CONS
E-wallet
Mobile banking app
Bank cards
11
NPS = 48 NPS = 28 NPS = 25 NPS = 25
E-wallet Mobile banking app Credit card Debit card
E-wallet far outperforms other methods on the Net Promoter Score
Mobile Payments Bank cards
Mobile payment
E-wallet vs. mobile banking app
12
Consumer strongly motivated by promotions from e-wallets
13
NPS = 48
NPS = 28
E-wallet
Mobile banking app
Things that mostly make consumer satisfied
Both need to improve the stability of app.
Mobile banking app need to simplify the registration process.
8 in 10 people aware, 3 in 10 use in the past 3 months
14
29
80
E-wallet
awareness and
past 3 month
incidence
(%)
Awareness
Incidence
15
Total brand awareness
E-wallet ever installed
Current install e-wallet
Most often e-wallet
Momo ZaloPay VTPay / ViettelPay Grabpay
by Moca
AirPay
88%
59%
46%
42%
67%
77%
91%
63%
24%
11%
5%
37%
45%
46%
54%
11%
3%
2%
20%
31%
44%
51%
13%
6%
3%
26%
48%
42%
46%
6%
3%
1%
Momo is the leading e-wallet
Momo claim they reach 10 millions users. 6 of 10 is currently active.
16
NPS = 53 NPS = 36 NPS = 47
Momo Vietcom bank app Techcombank app
Momo outperforms two popular mobile banking apps
Who will win?
17
E-wallets - a fintech fad or here to stay?
18
friend enemy
Frenemy? Mobile banking appE-wallet
Will bank apps kill e-wallets? Can they match consumer centricity?
19
Mobile banking appE-wallet
• Technology focus
• Flexibility
• Ability to expand network
• Could be a solution for
unbanked sector
• Micro transaction
• Bank account penetration has
been largely driven by salary
transactions
• IBPS (Institute of Banking
Personnel Selection) linked
most of bank user
• A lot of rewards, promotion &
deals
• Competitive fee
• Ability to pay a wide range of
category
• Smooth UX & UI experience
• Reputation
• Smooth UXConsumer
perspective
Business
perspective
▪ Tech led consumer centricity that banks can never catch?
▪ A bridge for banks to penetrate the unbanked?
▪ A focus on micro transactions?
Could e-wallets become a distribution and marketing channel for banks?
20
Unbanked sector
Will a dominant player win?
21
Already the leader for their messenger application, but why not the e-
wallet?
Already in every Samsung phone, but why not the leader?
Momo burn a lot of money to have people try it, how long can this
spend be sustained?
Will one player prevail in a larger eco-system?
A supper app like We Chat in China?
22
Which is the most possible scenario?
3. An e-wallet will dominate and win.
4. An e-wallet will become a sing all-in-one super
app (e.g. Wechat in China).
23
1. Bank mobile app will kill e-wallets.
2. E-wallet will be a distribution and marketing
channel for banks.
24
Cimigo
217 Dien Bien Phu Street,
Binh Thanh District, HCMC, Vietnam
T: +84 28 3822 7727