Review of e-wallet MoMo in Vietnam as major payment method

Besides being a vibrant region with rich history and culture, Asia is also known as a successful international market for various goods and services. Recently, iGaming operators have shown interest in this direction, responding to the tightening of legislation in the EU and other Tier-1 markets. Operators have turned their attention to countries where anti-money laundering (AML) and gambling laws are not yet fully established, making operations significantly easier. Despite the less stringent legal framework, payment market has added complexities, as Asia has its own payment habits and preferences that differ from those in Europe or North America.

Vietnamese online payment market combines traditional and new approaches. Electronic wallets like ZaloPay, MoMo, and Shopee Pay are very popular in Vietnam, along with QR code payments via VietQR and Napas, and bank cards such as Visa, Mastercard, and to a lesser extent, American Express.

Today, let's take a closer look at the most essential payment method in Vietnam — MoMo wallet and its features.

What is MoMo Pay?

MoMo Pay, or simply MoMo, is the most popular mobile wallet in Vietnam, leading revolution in payment services in the country. MoMo, short for Mobile Money, was launched by M-Service in 2014. It quickly gained popularity due to its user-friendly interface and wide range of services. MoMo has played a crucial role in promoting cashless payments in Vietnam, especially among the unbanked population, which at one point constituted the majority. With strong support from investment companies, including Mizuho Bank, MoMo continues to develop rapidly, becoming an indispensable app for many Vietnamese.

The wallet's main features include:

• Bill Payments: MoMo allows users to pay for utilities, phone bills, internet services, and more. The wallet supports charity and almost all mass-market services in the country.
• Money Transfers: The second most popular feature is peer-to-peer transfers within the system, available for both individuals and businesses.
• Online Shopping: MoMo is integrated with e-commerce platforms, enabling online purchases and interactions with gaming sites for in-game items and deposits.
• QR Payments: MoMo is widely used for QR code payments in physical stores, restaurants, and other establishments. By scanning a QR code, users can quickly complete payments, similar to services like Brazil's PIX or Russia's SBP.
• Financial Services: MoMo offers various financial services, including microloans, insurance for vehicles, and the purchase of stocks and securities. It also provides installment plans for Apple products.

Considering the wallet's functionality and widespread use, here are some key advantages:

• User-friendly: MoMo offers a convenient and straightforward way to make payments and transfers, which is crucial for successful payment solution.
• Widespread use: MoMo is extensively used in Vietnam, making it accessible to most people and beneficial for businesses. If a business does not accept MoMo, it is likely missing out on a significant portion of the market.
• Security: MoMo has implemented robust security measures to protect user data and transactions, enhancing customer trust.
• Comprehensive services: wallet offers a wide range of services beyond simple payments, positioning itself as a super-app. Another great example of this approach is Kazakhstan's Kaspi that also offers a bunch of different functions inside one app.
• Social responsibility: MoMo's active involvement in social initiatives builds trust and ensures long-term customer loyalty. As we all agree that only stable business would invest into such direction. Thus, Vietnamese feel closer to MoMo in this way as well.

Building a comprehensive review, we could not miss drawbacks. Actually, MoMo does not pose a lot of them. But some users noted its Internet dependency that can be complicated in some regions. MoMo requires a constant internet connection, which can be challenging in places with poor coverage. Comparable to credit cards, that do not have this requirement, service may be not accessible sometimes.

Some users find the closed nature of the system a disadvantage, as it does not allow transactions to other wallets or payment systems. This issue is common among modern electronic wallets, but user feedback may drive changes and potential collaborations with competing services so they allow transactions with each other.

Payment systems in Vietnam 

When entering a new market, it is essential to understand payment habits and providers, especially for large international projects aiming for quick and comprehensive market coverage. In Vietnam, while MoMo is the leading player, other significant competitors also operate in the market.

ZaloPay is MoMo's primary competitor, offering similar functionalities such as bill payments, ticket purchases, peer-to-peer transfers, insurance, installment plans, and more. ZaloPay has over a hundred integrated services and thousands of payment acceptance points nationwide. The app actively uses promotions and bonuses to retain users and compete effectively. 

Shopee Pay is a Singaporean holding company that includes a marketplace and payment solution. Shopee online store primarily sells Chinese goods from various sellers. The integrated wallet is used for purchases and refunds within the system. Although Shopee Pay is popular, it ranks third after MoMo and ZaloPay.

One more popular payment option is Napas — a national payment corporation in Vietnam, providing account-to-account payment solutions similar to open banking. It has already surpassed Visa and Mastercard in the country. National Payment Corporation of Vietnam (NAPAS) is a payment intermediary licensed to provide financial switching and electronic clearing services in Vietnam. The main shareholders of NAPAS are the State Bank of Vietnam and commercial banks. Napas aims to promote cashless transactions in Vietnam, a significant shift from the predominantly cash-based society of a decade ago.

In conclusion, Vietnam is an attractive market for gaming products, but relying solely on Visa and Mastercard may not yield the desired results. Conducting thorough payment analytics and integrating right payment methods from quality providers is crucial for every business. Your offering should meet client expectations and demonstrate high payment approval rates. For expert consultation on this matter, feel free to reach out to us, and we will help you find the best solutions.