Factors Affecting to Card Payment's Choice: An Empirical Study of HCM City, Vietnam

Abstract

Cash transaction is still dominant in Vietnam market. Even the advances of information technology have allowed banks and financial institutions introducing new and more efficient products and services but the rate of non cash transaction is modest. Vietnamese are still preferred cash payment. Basing survey data of consumer’s perception toward card payment in HCM city, the aims of this study would shed some light on how individuals choosing payment by card and explain why cash transactions still remain strongly. This paper identified the factors which are affecting the card payment and examining how these factors impact to consumer’s decision. The primary data was collected from 186 respondents through structured questionnaires. The factor and logit regression analyses were used to investigate the factors impacting to card payment’s choice among consumer in HCM, Vietnam. The results indicated that factors strongly influence to consumer’s decision to choose card to pay are age, cost and security. The findings suggest that the number of card payment transactions would be improved by banks and government’s efforts in order to provide necessary guidance, safety’s assurance, appropriate regulation to educate and strengthening trust of consumer. Combining with setup a national gateway payment and simplify the process of merchant integration would allow to lower cost of using card by taking advantage of economic of scale.