E-payments,

e-wallet and

the future of

payments

Ho Chi Minh city, 19th April 2019

Non-cash payment forms

2

Bank card E - payment

CHIP NFC

QR CODE

QR CODE

PIN PIN

PAYMENT

GATEWAY

Key players in e-payment sector

3

A

A

E-wallet Payment

gateway

Mixed model

4

Banks launch own applications

Opportunity for e-payments

5

Internet usage in Vietnam has reached 67%. Internet economy reach

US$9 billion in 2018, account for 3.8% GDP.

85% smartphone penetration amongst adults 15+.

Proactive support from the government creates favorable conditions to

foster and develop supply side e-payment services in Vietnam.

500 people surveyed

6

Men and women HCMC and Hanoi

18-55 Class ABC

500

interviews

Household income more than VND9,000,000

3 in 10 using mobile – an app or a wallet

7

1412

16

2320

26

30

25

36

29

25

34

Total204

HCM103

Hanoi101

Debit Credit Mobile banking app E-wallet

Incidence of non-cash payment forms in past 3 months

(%)

Base

E payment users mostly paying periodical bills and mobile phone top up

8

29

71

16

13

23

13

3

4

29

71

22

17

16

9

5

3

33

67

35

12

6

3

11

0

0

97

22

19

45

11

1

0

21

79

19

28

27

2

2

0

46

54

15

19

9

4

7

0

54

46

9

30

0

1

6

0

By cash

By non-cash

Debit card

E-wallet

Mobile banking app

Bank transfer

Credit card

Standing order

59

3828

3440

12

33

Periodical bills Onlinepurchase

Offlinepurchase

Money transfer Mobile phonetop-up

Ride hailing Food delivery

Incidence of

transactions in P3M (%)

How to pay (%)

Amongst past 3 month e-payment users only

Consumer experience

9

E-wallets recognized for promos

UX is strong for both e-wallets and bank apps

10

• A lot of rewards, promotion & deals

• Competitive fee

• Ability to pay a wide range of

category

• Smooth UX & UI experience

• Not secure

• Not many accepted place

• Customer care system is slow.

• Brand reputation

• Smooth UX • Lack of promotion & deals

• Large network of accepted places

• Brand reputation

• Easy to cash in/ cash out

• Lack of promotion & deals

• Narrow range of category to pay

• High fee

• Slow payment process

PRO CONS

E-wallet

Mobile banking app

Bank cards

11

NPS = 48 NPS = 28 NPS = 25 NPS = 25

E-wallet Mobile banking app Credit card Debit card

E-wallet far outperforms other methods on the Net Promoter Score

Mobile Payments Bank cards

Mobile payment

E-wallet vs. mobile banking app

12

Consumer strongly motivated by promotions from e-wallets

13

NPS = 48

NPS = 28

E-wallet

Mobile banking app

Things that mostly make consumer satisfied

Both need to improve the stability of app.

Mobile banking app need to simplify the registration process.

8 in 10 people aware, 3 in 10 use in the past 3 months

14

29

80

E-wallet

awareness and

past 3 month

incidence

(%)

Awareness

Incidence

15

Total brand awareness

E-wallet ever installed

Current install e-wallet

Most often e-wallet

Momo ZaloPay VTPay / ViettelPay Grabpay

by Moca

AirPay

88%

59%

46%

42%

67%

77%

91%

63%

24%

11%

5%

37%

45%

46%

54%

11%

3%

2%

20%

31%

44%

51%

13%

6%

3%

26%

48%

42%

46%

6%

3%

1%

Momo is the leading e-wallet

Momo claim they reach 10 millions users. 6 of 10 is currently active.

16

NPS = 53 NPS = 36 NPS = 47

Momo Vietcom bank app Techcombank app

Momo outperforms two popular mobile banking apps

Who will win?

17

E-wallets - a fintech fad or here to stay?

18

friend enemy

Frenemy? Mobile banking appE-wallet

Will bank apps kill e-wallets? Can they match consumer centricity?

19

Mobile banking appE-wallet

• Technology focus

• Flexibility

• Ability to expand network

• Could be a solution for

unbanked sector

• Micro transaction

• Bank account penetration has

been largely driven by salary

transactions

• IBPS (Institute of Banking

Personnel Selection) linked

most of bank user

• A lot of rewards, promotion &

deals

• Competitive fee

• Ability to pay a wide range of

category

• Smooth UX & UI experience

• Reputation

• Smooth UXConsumer

perspective

Business

perspective

▪ Tech led consumer centricity that banks can never catch?

▪ A bridge for banks to penetrate the unbanked?

▪ A focus on micro transactions?

Could e-wallets become a distribution and marketing channel for banks?

20

Unbanked sector

Will a dominant player win?

21

Already the leader for their messenger application, but why not the e-

wallet?

Already in every Samsung phone, but why not the leader?

Momo burn a lot of money to have people try it, how long can this

spend be sustained?

Will one player prevail in a larger eco-system?

A supper app like We Chat in China?

22

Which is the most possible scenario?

3. An e-wallet will dominate and win.

4. An e-wallet will become a sing all-in-one super

app (e.g. Wechat in China).

23

1. Bank mobile app will kill e-wallets.

2. E-wallet will be a distribution and marketing

channel for banks.

24

ask@cimigo.com

Cimigo

217 Dien Bien Phu Street,

Binh Thanh District, HCMC, Vietnam

T: +84 28 3822 7727