Momo and ZaloPay dominate cashless payments in Vietnam
HCMC – MoMo and ZaloPay e-wallets accounted for the highest share of the Vietnamese e-wallet market in the
The Vietnamese market is witnessing fierce competition from more than 40 e-wallets and is considered to be in a boom period. By the end of 2021, MoMo and ZaloPay are leading the list of losses.
Recently, a market research report from Vietdata showed that, in four years (from October 2018 to October 2022), the number of e-wallet users has increased impressively from 12.3 to 41.3 million. (up 330%).
Vietdata also estimates that by July 2024, Vietnam's e-wallet market will have 50 million active users, 100 million users in May 2026 and 150 million in July 2030. The number of non-cash payment transactions in the first 11 months of 2022 also increased by 85.6% over the same period.
According to forecasts, with a compound growth rate of up to 30.2%/year in 2020-2027, the mobile payment market in Vietnam could reach 2.7 trillion USD by 2027. growth, the market gap is also a promising factor for businesses to join the game.
According to Mastercard's new Payment Index report, in 2022, 94% of consumers in Vietnam used at least one digital payment method and 60% of them used e-wallets by tapping on smartphones. Consumers also plan to use e-wallets more in the future, with 77% saying they will use e-wallets on smartphones more often in the next year.
Besides the "big guys" such as MoMo, VNPAY, Moca, ShopeePay, ZaloPay, and Payoo, the e-wallet market is increasingly vibrant with the entry of a series of "rookies" such as VinID, SenPay, MobiFone Pay, eM, SmartPay, G-Pay,...
Source: Vietdata
Vietdata's latest updated data shows that, by the end of 2021, the unicorn MoMo will dominate by attracting up to 56% of the Vietnamese population. Next is ShopeePay with 17%, ZaloPay with 14%, and ViettelPay with 8%. The rest are Moca and VNPT Pay, with only 2% and 1% respectively.
MoMo lost more than 880 billion in 2021
Source: Vietdata
According to Vietdata, at the end of 2021, after announcing the completion of the fifth round of capital calling (series E) with a raised amount of about 200 million USD, MoMo officially became one of four Vietnamese unicorn startup club members. Male.
After becoming a "unicorn", Momo gradually became a "shark" when he decided to establish the MoMo Innovation Investment Fund and pour money into a series of startups. MoMo's first deal was the acquisition of all intellectual property rights of the Pique startup launched in 2017. After the success of the Pique acquisition, Momo continued to invest in the startup Fast. vn - A sales management software Multi-channel store with over 80 thousand active shop owners.
Momo's revenue increased steadily in the period 2019-2021. Accordingly, the 2021 revenue of this e-wallet will reach more than 7.3 trillion VND (up 20% compared to 2020). However, by the end of 2021, Momo still needed to be more profitable. Specifically, by the end of 2021, MoMo's loss reached more than 880 billion VND.
ZaloPay's net loss of VND 1,200 billion
Source: Vietdata
ZaloPay e-wallet was developed by Zion. The competitive advantage of this e-wallet lies in its association with the Zalo application - Vietnam's leading chat platform with more than 100 million users. ZaloPay Wallet is currently a partner of famous brands such as Lazada, Beamin, Tiki, Sendo, Circle K, Big C, and Be in many different areas, from e-commerce and shopping to health and beauty. Zalopay is also spending money heavily, suffering large losses to attract consumers.
Regarding the business situation, the latest updated data from Vietdata shows that in 2021, Zalo Pay brought in a revenue of only nearly 270 billion VND and recorded a net loss of up to 1.2 trillion VND. Parent company VNG has spent a total accumulated provision cost as of September 2022 for this e-wallet of VND 2.3 trillion.
Big guy VNPay reported profit.
At the end of July 2021, VNPay announced receiving an investment of 250 million USD from General Atlantic, Dragoneer Investment Group, Paypal Ventures,.... thereby further exciting the competition between e-wallets. as well as creating competition between e-wallets and similar services from banks and telecommunications companies.
VNPay, with the strength of its electronic payment gateway platform, owns a large network of payment affiliate partners. In December 2022, VNPay announced a partnership with Vietnam's leading retailer, Saigon Co.op, to expand its customer base.
Regarding VNPay's business situation, according to Vietdata data, VNPay recorded positive growth rates in revenue and profit after tax in recent years.
Specifically, this tycoon's revenue reached more than 22 trillion VND by the end of 2021, an increase of 4 times compared to 2017. After slowing down in 2019, VNPay's after-tax profit began to grow again. and reach nearly 320 billion VND in 2021, an increase of 87% compared to 2020.
Payoo e-wallet
Payoo is an e-wallet owned by Viet Community Online Services Joint Stock Company (Viet Union). Payoo has linked with nearly 25,000 points nationwide, paying nearly 1,000 utility bills. With a large and regular user base, the total transaction value through Payoo reaches nearly 100 trillion VND/year.
Once successful with bill payments, Payoo returned to conquer retail partners with new payment solutions. After retail, Payoo also expanded into many new fields. Up to now, Payoo has been serving most of the leading partners in many fields, from technology, electronics, supermarkets, convenience stores, F&B, motorbikes, pharmacies, health care, beauty spa,…
Regarding the business situation, Vietdata's data shows that, after reaching a revenue milestone of more than 3.2 trillion VND in 2019, this company's revenue began to show signs of decline. By 2021, Payoo's revenue will only reach 2.5 trillion VND, down 15% compared to the same period in 2020. However, after tax, the business's profit still achieves a positive growth rate.
Ngan Luong e-wallet
Ngan Luong is an e-wallet from Ngan Luong Payment Intermediary Joint Stock Company, established in 2009. With huge capital from the world's leading financial corporations such as IDG (USA), SoftBank (Japan), and eBay (USA), Ngan Luong can ensure finance for all online transactions in Vietnam. Ngan Luong has built an advanced system directly linked with nearly 40 financial and telecommunications organizations in Vietnam and internationally.
Regarding the business situation, Vietdata's data shows that Ngan Luong's revenue in recent years has fluctuated quite a bit. Revenue in 2021 has increased compared to 2020 but is still lower than 2017-2018. Specifically, in 2021, Ngan Luong's revenue will reach about 430 billion VND, an increase of 20% compared to 2020, and profit after tax also increased 35% compared to 2020.
Moca e-wallet
In 2013, Moca Technology and Services Joint Stock Company was founded by a group of former senior employees of Microsoft, Google and leading experts in Vietnam's finance and banking industry.
Suppose Momo and ZaloPay are mostly used to top up phones, transfer money and pay periodic bills. In that case, Moca is mainly used for payment for technology vehicles and food delivery. Moca chose to cooperate with Grab to build a mobile payment ecosystem for the entire ecosystem of this super application. In addition, Moca also cooperates with Tiki to meet the increasing demand for shopping and electronic payments, especially in the current context.
Regarding the business situation, Vietdata data shows that the closing of 2021 was full of fluctuations. This brand's revenue reached about 235 billion VND, down 13% compared to 2020. Like Zalopay, Moca Linked has continued to "burn money" in recent years. Accordingly, Moca's profit after tax is continuously negative. By 2021, this business reported a loss of nearly 165 billion VND.
