Cash withdrawals on national payment network halved to 6.56% in 2022

Cash withdrawal transactions on the system of the National Payment Corporation of Vietnam (NAPAS) halved from 12% in 2021 to 6.56% in 2022, said CEO Nguyen Quang Minh.

NAPAS, with the State Bank of Vietnam and commercial banks as major stakeholders, is a major platform for retail payments in Vietnam. It provides transaction services like card payment, bank transfer, QR code, Mobile Money, international transactions, and others, in order to build a cashless payment ecosystem for Vietnam.

Digital transactions via NAPAS in 2022 increased 96.5% in volume and 87.3% in value year-on-year, Minh told the company's year-end meeting on Wednesday. The ratio of transactions made with chip-based bankcards increased from 26% in 2021 to over 60% in 2022.

Quick transaction service NAPAS 247 utilizing QR codes provided by VietQR has become a popular payment method and is welcomed by the market thanks to its convenience and affordability, Minh added. This service, with the participation of 58 banks and telecommunication service providers, helps customers make money transactions round the clock, according to NAPAS.

In 2022, the ratio of cash in the total money supply of Vietnam fell from 13.29% in January to 9.71% in October, State Bank of Vietnam data shows.

Vietnamese consumers are rapidly adopting a range of digital payment methods, the latest Visa Consumer Payment Attitudes study shows. The study, published in June 2022 by world-leading digital payment firm Visa, demonstrates an emphatic shift in payment habits in the country. Up to 65% of Vietnamese are carrying less cash in their wallets, and 32% said they would stop using cash after the pandemic. Nearly 76% of consumers now use mobile wallets and 82% use cards.