Posts tagged: mastercard

Credit card is NOT a must in developing e-Commerce. Here is how:

By , March 15, 2012 5:37 pm

During Asia Pacific ICT Summit I received a question on development of e-Commerce and @opspecgsmb tweeted that it depends on credit card penetration.

Dependence on credit card never happened in China and it is not happening in Vietnam.

The situation in  Vietnam (which many Singaporeans may find different from that of their own country)

  1. Still a cash economy
  2. People love buying topup cards
  3. Bank card penetration is only 30% of the population
  4. It takes an urban Vietnamese 5 minutes to visit their local mom-and-pop shop
  5. Every household possesses personal vehicle
  6. It costs 50 cents to deliver goods from a warehouse to a location in the city
  7. Buyers haven’t trusted online transaction

Here are what e-commerce companies in Vietnam are doing:

  • Setup distribution network with local mom-and-pop shops, pavement stalls, internet cafĂ©. Provide these agents with physical topup cards or web interface or SMS interface. Exploit (4)
  • Cash on delivery. Exploit (3)
  • Partner with post offices. Customers can pay at post offices.
  • Provide cash collection services

So customers don’t even need to have bank accounts to buy and trade online, not to mention credit cards.

Of course, it sounds primitive but that’s what’re happening while we wait for the adoption to hit critical mass.

Where is the role of technology?

We can use PayPal. There are also local PayPal clones with much lower fees. With a local bank debit card (I don’t even need a Visa/Mastercard), I can buy stuffs online and perform interbank transfer for free (at least free for now when companies are educating users).

The obstacle is buyers habit and problem of trust.

Groupon clones have helped buyers become more comfortable buying and paying online.

I’ll write a separate post on solving the problem of trust.

So that pretty much wraps up one point on infrastructure for e-commerce in Vietnam. If you’re interested please CLICK HERE to read more.


e-Payment in Vietnam: who are with whom

By , October 30, 2011 3:23 pm

Disclaimer: all information are sourced from public information.

Category Product Company Strategic Partner Financial Partner
e-Wallet NganLuong PeaceSoft PayPal



MobiVi’ Viet Phu Experian  
BaoKim Vietnam Price (VatGia)  



Payoo VietUnion NTT Data Saigon Invest
Soha Pay (MuaChung Pay) VCCorp   IDGVV
vCash VinaPay



WMV WebMoney Vietnam WebMoney Russia Viet A Bank
Mobile Payment MoMo VinaPhone    
Bank switchboard Smartlink Smartlink A syndicate of banks, led by Vietcombank
VNBC VNBC A syndicate of banks, led by Dong A Bank
Banknetvn Banknetvn State Bank of Vietnam
Payment gateway OnePay   Mastercard Vietcombank
Kiosk banking Paylink     Kosto Group
FPT Pay   FPT Online  

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