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GlobalData forecasts a 24.1% card payments increase in 2022 for Vietnam

Tuesday 25 January 2022 10:42 CET | News

Data and analytics company GlobalData has forecasted that the card payments market in Vietnam will register a 24.1% growth in 2022, after being affected by the COVID-19 pandemic.

While Indonesia and Malaysia witnessed a decline in card payments in 2020, Vietnam registered 2.4% growth, reveals GlobalData’s Payment Cards Analytics. With rise in economic activities coupled with the rollout of vaccination programmes, the card payments value is anticipated to increase further at a compound annual growth rate of 18.3% between 2021 to 2025, to reach USD 60 billion, according to the company.

GlobalData officials stated that Vietnam has traditionally been a cash-based economy due to low banked population, those aged 15 and above holding a bank account, which currently stands at around 33%. With government and other regulatory bodies taking various steps to promote non-cash payments, the card payments market registered increased growth since 2018, they added.

To bring the majority of the Vietnamese population under the purview of formal banking system and to encourage digital payments, the government of Vietnam in November 2021 approved a project for cashless payment development until 2025. As part of this, the government plans to increase the percentage of banked population to 80% by the end of 2025.


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Keywords: GlobalData, research, growth markets, digital payments, debit card, credit card, cashless
Categories: Payments & Commerce
Companies:
Countries: Vietnam
This article is part of category

Payments & Commerce