Mastercards have landed in Vietnam recently though the number of mastercard users is still limited . Their goal for upcoming future is for consumers in Asia’s fastest growing economy to stop using cash and to suppport to an emerging market and technologies. According to Mrs Wong (Mastercard manager in Vietnam), the company is ready for massive changes in technologies in Vietnam which focusing on payment method which include QR Code and Smartwatches. However, with the rise of e-wallet throughout Asia especially where many has leapfrogged credit cards that directly go to virtual wallet, the company will have a alot of competitors.
MasterCard accepts a small market with only 56% of Vietnamese having debit card or credit card- the lowest in the region’s six big economies in 2020 according to Visa Consumer payment Attitudes Study. In contrast, MoMo – one of the biggest ewallet in Vietnam has reached 20 million users in 2020 and is aiming toward 50 million users by the end of 2023. They have surpassed other competitors such as Visa (3.9 million), Mastercard (2.7 million), American Express (340,000) and JCB (270,000) in the country. The fact that all the shops in Vietnam can avoid credit fees when going through MoMo or another finctech app is creating a massive problem for the credit networks that operate here in Vietnam. For upcoming plan to compete with other fintech startup, Mastercard is gearing for ‘pass-through’ where consumers now can just load virtual cards through app on their smartphone and thus they dont need to bring their actual cards anymore. Another big plan that they have is to expand it as globally where consumers can use it worldwide instead of MoMo where they can only use within the country. This allows them to spend at 53 million merchants globally, a scale that Mastercard will offer to more e-wallets.
Moreover, they also plan to cooperate with ZaloPay and if that happen, cardholders can pay wherever Zalopay is accepted. However, this will be a long run for Mastercard to grow in Vietnam.