Mobile Money, Financial Inclusion and Digital Payment: The Case of Vietnam

Tran Hung Son,Nguyen Thanh Liem,Nguyen Vinh Khuong

doi:10.5430/ijfr.v11n1p417

Tran Hung Son, Nguyen Thanh Liem + Show 1 more

Open Access

https://doi.org/10.5430/ijfr.v11n1p417

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Abstract

The study provides an overview of mobile money account usage, financial inclusion and digital payment transaction trends in Vietnam, and considers the factors influencing these trends. In general, the rates of using mobile money service and account ownership at financial intermediaries in Vietnam are still low, and other indicators of digital transactions suggest low levels compared to those of countries with low- and middle- income as well as to the world averages. The research also shows that owning an account at a financial intermediary facilitates the use of mobile money. This is a positive trend, at least compared to the situation in some African countries. Finally, having an account at a financial intermediary and using mobile money services generally have a positive effect on the participation in non-cash transactions.

Highlights

In recent years, developing an inclusive financial system serving all members of society has become an important policy in many countries, especially emerging economies
Mobile money accounts and financial intermediaries generally have a positive effect on the trend of non-cash transactions in Vietnam
This study provides an overview of the trends of mobile money accounts, financial inclusion and cashless transaction in Vietnam, and considers the factors that influence these trends

Summary

Introduction

In recent years, developing an inclusive financial system serving all members of society has become an important policy in many countries, especially emerging economies. Mobile devices have played an important role in promoting inclusive finance in developing countries (Kanobe, Alexander, & Bwalya, 2017). Thanks to being highly mobile, ubiquitously available and personalized, mobile phones have quickly spread in developed countries and in most developing countries, overcoming geographical barriers. According to GSMA (2015), in the last decade, mobile money has helped expand financial services more than what traditional banks did in the last century. The GSMA report found that at least 19 countries had more mobile money accounts than bank accounts and 37 countries had 10 times more mobile money agents than bank branches

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