QR Code dramatically develops on the checkout table

04-Feb-2020 Intellasia | VnExpress | 6:02 AM Print This Post

In the afternoon at a fashion shop in Thai Ha Street, customers waited in line to pay, holding their phones instead of their wallets.

The store clerk said that from the morning there had been only one cash order, the rest had been payment via QR codes because there were promotions of 10 percent off.

The seller also said that only 20 percent of customers paid by cash or swiped the card, mostly because they did not know about this promotion or had not opened e-wallets, or the bank they used was not in the favoured category.

In early November 2019, many people saw a crowded queue at shopping centers or petrol stations when MoMo launched a promotion named ‘super cashback’ of 50%. Previously, there was another hit of refunding up to 400,000 dong when customers paid electricity bills and other promotional codes with Moca e-wallet on Grab. Following these offers, the value of transactions via this wallet platform was reported to grow at a two-digit monthly rate.

That described a fact, that the utility was not enough to entice users. Therefore, over the past time, payment platforms had been constantly offering incentives for payment via QR codes.

Then in 2019, the QR code payment market was really exciting when VnPay offered with a series of discount codes that covered a wide range of fashion stores. The discount campaigns so far had not shown signs of cooling down when they were still expanding to coffee shops, eating places, electronics bill, and so on.

2019 was really a ‘booming’ year of QR code payment method. The race at the points of sale mainly belonged to the three main players, including MoMo, Moca on Grab and VnPay, while VinID, AirPay and SamsungPay had rare moves.

It was not difficult to see the three color palettes of MoMo, VnPay and Moca lying side by side on the payment table at restaurants, fashion shop, entertainment centre. The sign of ‘Payment via Airpay or SamsungPay here’ still appeared but many employees said that not many people used it.

From three years ago, MoMo e-wallet appeared first along with offline payment method with QR code. Currently, MoMo was present at 100,000 acceptance points, the number of QR transactions at these points was about trillions. At small marginal stores, it was easy to see the appearance of MoMo. As a market explorer, MoMo chose to go the ‘industrious’ way, gleaning a list of unknown shops next to entering the systematic sales chain.

By early 2019, the Moca e-wallet on Grab appeared with the same move. After nearly a year, they had tens of thousands of payment points.

These two ‘warriors’ painted a future similar to what Alipay or Wepay created in the Chinese market, where street vendors did not need pence. E-wallets might replace cash or bank cards, which could not reach small retail outlets that were unable to afford to invest in an expensive Point-Of-Sale (POS) machine.

However, the ‘latecomer’ of VnPay had created another situation, regaining its position for the banking world in the payment race. VnPay had not appeared at retail outlets such as MoMo or Moca on Grab but was still developing payment points in unison through cooperation with fashion, dining and entertainment chains. QR Pay campaign had just started in the second half of 2019, but until then VnPay had accelerated with more than 50,000 points accepting offline payments.

VnPay was not an electronic wallet, nor was there any individual application for customers. VnPay’s QR code presented on dozens of mobile applications of different banks, or to be exact, VnPay provided a common solution for payment by QR codes for banks. If dozens of banks developed different payment QR codes, winning the payment pie would be hard for them. VnPay appeared, creating a common QR code for banks.

At present, competing in payment by QR codes, especially offline, had become a balance between one e-wallet and dozens of banks sharing the same QR code of VnPay. The race for 2019 was just the beginning. No name really dominated the payment segment with QR codes. If there were not a lot of promotions, people would switch to use that, the store clerk said.

Because the platforms had not yet covered all potential payment points, the competition in 2020 would continue to be the expansion of the network with the promotion of money.

However, in the long term, the race to win market share did not stop with the money-burning race. Players who could hold out and had a large network, user-friendly guest files would gain market share.

Nguyen Xuan Truong, director of MoMo’s remittance division, said that in the future, promotions would still take place but based on adding value and increasing connectivity with customers. In addition to the utilities from paying phones, paying bills, buying movie tickets, the question was how to see the applications were close and connected with users.

In fact, paying by QR code had many advantages to become popular in the Vietnamese market. QR code overcame the disadvantages of card payment when it had the advantage of cheap and simple installation costs. Where did a street vendor get money to invest in a POS system for customers with cards? That was the opportunity for QR payment in 2020 and the coming time.

Vietnam was very different from developed financial markets like the US or Singapore. Paying by QR codes had no land to develop in these markets because people were so used to swiping cards for every spending transaction. In contrast, Vietnam had a gap in the market when card payment was not universal, the trend of using smartphones was on the rise when 70 percent of the population using smartphones and e-commerce entered the exciting period.

The cost of implementing QR Code payment was very low and simple. The development speed of QR Code was amazing and would be the future payment instrument of Vietnam, the founder of electronic wallet MoMo, Nguyen Ba Diep, said.


Category: Finance, Vietnam

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