6 most common payment methods in Vietnam

To figure out some suitable payment methods in Vietnam is one of the biggest concerns for many foreigners who have just set foot in a new country, in this case, Vietnam. Then let us help you figure it out with our list of the most common payment methods in Vietnam below.

6 most common payment methods in Vietnam

Traditional payment:

By card

Whether you are in Vietnam or anywhere in the world, you must be very familiar with this cash payment method. You can totally use cash to pay bills to sellers or businesses when purchasing an item ranging in value from small to large.

This was once the most basic and widely used form of payment in Vietnam. This method, however, has some limitations, especially in the midst of the Covid 19 pandemic, when the government carries out policies such as a lockdown or social distance anytime. Moreover, with advanced technology, and modernization, new forms of payment have emerged, which will be listed below.

6 most common payment methods in Vietnam

Bank transfer

Bank transfer has been one of the most conventional payment methods in Vietnam. You can transfer money to partners through ATMs or operate right on your phones or computers.

Most businesses use this payment method in economic transactions. In addition, wire transfer is one of two payment methods accepted on invoices.

Bank Card

Paying bills by card has been so familiar to people in the 21st century. There are many places or shops in Vietnam as well as in the world accepting card payments, therefore, you can easily pay for everything with just one swipe of your card.

There are two types of cards you can use in paying bills in Vietnam:

• Domestic debit card: This kind of card is just valid for use in the country where it is issued. Thus, you need to have a bank account in Vietnam to conduct this task. (If you do not know how to open a bank account in Vietnam, you can refer to it here). Of course, you need to deposit money into your bank account to use the card.
• Credit card: A credit card is a prepaid card that allows you to pay later. The bank will provide the cardholder with a credit limit to spend on request, you must return the used amount within the payment period, or interest will be charged.

Online payment methods in Vietnam

1. General advantages of online payment

Online payment brings a lot of benefits to users and is the most popular form of payment today.

For individual users, online payments are well received for the following compelling reasons:

– Fast and convenient: If you need to go directly to the address to buy goods and services to pay cash, with online payment you just need to make this transaction simply, quickly on electronic devices such as computers, smartphones with internet connection. In addition, you can pay online anytime, anywhere.

– Save costs and time: Also thanks to the convenience, there is no need to spend time, the cost of going to the address to buy goods and services, so paying online will help you optimize costs and travel time. . You will not have to spend a lot of time moving to the address to pay, but just need to perform some quick operations on electronic devices.

– Enjoy many incentives: When paying online through banking applications, e-wallets, etc., you will receive many incentives such as: cashback, reward points, etc.

– Information security: Many people worry when making online payments will reveal personal information/account information. However, online payment units will build a good and safe information security mechanism to protect their customers and data systems. Therefore, customer information will be highly confidential. In addition, paying online also helps you limit the worry of keeping a lot of cash.

– Flexible payment: Online payments can be made through a variety of methods such as: e-wallets, electronic payment gateways, debit cards, credit cards… You will have many online payment options according to your own needs.

Disadvantages of online payment methods in Vietnam

Online payment brings convenience, speed and contributes to speeding up the e-commerce process. However, this form of payment still has certain limitations.

– Forgery and technical risks: Nowadays, scams entice people to send money illegally and hacker risks are increasingly sophisticated. Therefore, potential risks for banks and customers using online payment services still exist.

– Risk of information insecurity:

It can be caused by subjective factors such as customers sharing personal account information, transferring money from unsecured websites or giving phones/computers with applications installed to them. From there, creating opportunities for bad guys to make illegal online payments.

The main objective factor is the risks from cash machines and card machines. Therefore, users should install an anti-virus application for computers/phones using Internet banking and be wary of strange links.

– The legal corridor on e-commerce is still not specific: Currently, the law does not have clear regulations on risks in e-payment. It is this ambiguity that creates confusion for both the customer and the bank when something goes wrong.

Payment by e-wallet

When using the payment method by e-wallet, users must create an account. After possessing an account, you only need to transfer money from your account to the seller’s one to pay when making the transaction.

Due to the help of an E-wallet, you can transfer payments anywhere, anytime. Consequently, this method of payment via bank transfer has become increasingly popular in Vietnam.

Moreover, the payment method via bank transfer is currently regulated by Vietnamese law as one of two payment method types accepted on invoices in general and electronic invoices in particular. Thus, set your mind at rest when using this method!

Popular E-wallets in Vietnam

Online payment gateway in Vietnam

E-payment gateway is a common payment method that allows customers to pay for goods and services on e-commerce websites. As a result, it enables a secure connection between customer accounts (cards, e-wallets, etc.) and sales website accounts, permitting service users to securely transfer and receive money in a complete and timely manner.

Due to the increasing demand for payment gateway in Vietnam, more and more E-wallet applications are now being established. You can select electronic payment gateways that offer services with corresponding features to meet your needs.

For example, if you want to pay taxes electronically, you can do so entirely through the General Department of Taxation’s website at https://nopthue.gdt.gov.vn /.

Mobile Banking

Bill payment via mobile banking application is one of today’s most popular payment methods. To pay bills, you must first install the banking app that you use. The biggest advantage of this payment is that it saves you time. However, before using this method, make sure the store or unit you want to pay for is linked to the mobile banking service.

If you want to pay your water bill monthly, for example, you must link your water bill code to the app. Then, the monthly usage charge will be deducted from your account.

In addition, when paying water bills via Mobile Banking, your account balance must be higher than the amount to be paid and any other costs. Thus, make sure that you have sufficient funds before making the transaction.

Online check

Many studies show that the online check (also known as a cheque) service, among the other payment methods in Vietnam, currently accounts for 11% of all online transactions.

You will use checks via the Internet when making payments by filling in the required information form of the bank. Notably, it would be best if you tried to fill in the exact transaction date and transaction value and check them carefully before pressing the “send” button in order to conduct your transaction.

After that, the transaction office will automatically process it for you as soon as they receive the information. One of the biggest advantages of this payment method is that the transaction is faster and more convenient than many traditional checks. However, this method might be quite complicated for some people due to its complex procedure.

In conclusion

Now that you have the most common bill payment methods in Vietnam, you will no longer struggle to pay without cash on hand. Hopefully, after reading the article, you will find a solution that works for you.