Vietnam’s debit card payments to reach $65.6b in 2028

Debit card use is dominant, but still limited to cash withdrawals.

Vietnam’s debit card payments market will be valued at $65.6b (VND1,559.6t) in 2028, according to a report by data and analytics company GlobalData.

It is forecasted to expand at a compound annual growth rate (CAGR) of 13.7% between 2024 and 2028, supported by a rise in banked individuals and card penetration, and the shift towards electronic payments.

Cash continues to dominate the payment market in Vietnam, but the tide is slowly turning, thanks to the support of local authorities to boost non-cash payments, said Ravi Sharma, lead banking and payments analyst at GlobalData.

“With the increasing number of digital-only banks, the emergence of payment card technologies, and the development of payment infrastructure, the debit card payment market in Vietnam is set to expand significantly in the coming years,” Sharma said.

To drive debit card adoption, the government and commercial banks have launched financial literacy programs and introduced remote banking options.

Debit card use for payments are also on the rise on the back of rising consumer awareness, the introduction of contactless debit cards, and the expansion of the country’s POS network.

Debit cards accounted for 66.3% of total card payments value in 2023.

Despite high share, their usage remains mostly limited to cash withdrawals with debit cards’ frequency for payments standing at just 4.2 transactions per card as of 2024, Sharma said.

Overall, the card payment value in Vietnam grew 18.4% in 2023 to reach $33.8b (VND804.2t), extending the 46.2% rise in 2022.