According to PayNXT360’s Q2 2021 Global Prepaid Card Survey, prepaid card market in the Vietnam is expected to grow by 30.1% on annual basis to reach US$ 3,938.3 million in 2021.The prepaid card market expected to grow over the forecast period, recording a CAGR of 28.2% during 2021-2025. The prepaid card market in Vietnam will increase from US$ 3,028.2 million in 2020 to reach US$ 8,174.4 million by 2025.
In Vietnam, the growing digital wallet adoption has intensified the competition. The leading prepaid payment instrument providers are aggressively promoting their brands to acquire a more significant market share. Yet, this strategy has also resulted in mounting losses for digital wallet providers in recent years. For instance, the leading e-wallet service, MoMo, reported revenue of US$182.6 million in 2019, thereby recording more than double growth. However, the losses also doubled to US$36.8 million in the same year.
Digital wallets providers are moving towards super apps to gain market share:
In January 2021, MoMo, the leading digital wallet provider in the country, secured US$100 million in its Series D funding round. The prepaid payment instrument is planning to leverage the fund to build a new super app platform and to enhance its ecosystem that is currently serving more than 25 million users. As of September 2021, the firm claims to have 60% of the mobile payments market in Vietnam.
Strategic partnerships are growing to offer prepaid remittance services:
Vietnam is one of the top ten remittance recipient countries in the world. Millions of Vietnamese living and working overseas send billions of dollars back to their home country. For instance, in 2020, Vietnam remained the ninth-largest remittance recipient globally, with an inflow of more than US$17 billion. With the growing remittance market, cross-border payment providers are partnering with global payments technology companies, such a Visa, to launch real-time cross-border payment solutions. For instance,
US $
Euro €
GBP £