Evolution of cashless payment: the case of Vietnam

Purpose A cashless society is one of the national objectives of many countries worldwide. The Vietnamese government has approved the plans for establishing non-cash payments in the country, along with specific goals and remedies for the financial digitalization process. This paper aims to compare three phases of cashless payment evolution in Vietnam and other countries in the ASEAN region and evaluate the implementation of cashless payment solutions in Vietnam. Design/methodology/approach We assess the adoption of the cashless payment solution in Vietnam based on the three pillars proposed by Ng et al. (2021), including the implementation environment digitalization, the novelty of payment technology solutions and the status of national infrastructure. Findings The results indicate similar implementation stages of cashless payment in ASEAN nations. Although the transition in Vietnam is slower than in other countries, Vietnamese people adapt quickly to the cashless payment systems. Moreover, under the investigation of cashless payment solution implementations, Vietnam witnesses a low local implementation environment, digitalization and national infrastructure level, but a high level of payment technology novelty. The research highlights that Vietnam struggles with entrenched cash-using habits in traditional and rural markets, significant concerns about data privacy and weak national infrastructure. Originality/value This research offers valuable perspectives on adopting cashless payment systems in Vietnam, with implications for financial service providers, policymakers and consumers.