Vietnam's e-commerce market is experiencing phenomenal growth, and brands are eager to capture their share. However, I often hear the same belief from partners: "Customers want to pay by card, like everywhere else." This sounds logical, but in reality, it's not. Ignoring local payment habits is a direct path to lost profits. Your product might be perfect, but if customers can't pay for it conveniently, conversion rates will plummet.
The Challenge Faced by Sellers
The primary challenge for any brand on Vietnamese marketplaces is understanding how local shoppers prefer to pay. This isn't about global trends; it's about local specifics. Without this understanding, all efforts to drive traffic will fall flat at the final step – payment.
What Market Data Reveals
The numbers speak for themselves: Cash on Delivery (COD) remains the dominant payment method. According to PCMI data, 67% of online purchases in Vietnam were paid for with COD in 2024. TGM Research notes that 35% of respondents still prefer COD in 2025. Furthermore, a Studocu report indicates that up to 77% of e-commerce buyers in Vietnam still opt for COD in 2025, primarily due to distrust of sellers and the desire to inspect goods before payment.
However, the market is evolving. Alongside COD, digital payment methods are rapidly gaining traction:
- E-wallets: By 2025, mobile wallet penetration is projected to reach 55.5%, according to Statista. In 2024, digital wallets accounted for 41% of all e-commerce transaction volume. Market leaders include MoMo, ZaloPay, and ShopeePay.
- Bank Transfers: This method also holds a significant share, accounting for at least 29% of e-commerce revenue by May 2022. The VietQR system, launched by the National Payment Corporation of Vietnam (NAPAS), has made QR payments ubiquitous, fast, and reliable, transitioning them from a street vendor niche to a dominant method for B2B and large B2C transactions.
- Buy Now, Pay Later (BNPL): BNPL services are experiencing explosive growth. In 2022, only 17% of Vietnamese shoppers used BNPL, but by 2025, this figure surged to 49%. BNPL is particularly popular among young consumers aged 25-34 and women, as well as millennials and Gen Z, who often do not possess credit cards.
- Bank Cards: Credit and debit cards show relatively low penetration – 8% and 3% respectively in 2024, according to PCMI data.
Major marketplaces like Shopee and TikTok Shop dominate the market. In 2025, Shopee held 56% of the market, and TikTok Shop grew to 41.3%, while Lazada and Tiki combined accounted for only about 3%. These platforms are actively integrating their own payment solutions, such as ShopeePay, to reduce reliance on COD.
Why This Is More Important Than It Seems
I often hear this in negotiations: "So what if COD is popular? It's expensive and logistically complex." I don't disagree. Delivery efficiency is important. But there's a nuance that completely shifts the strategy. It's not just about the payment mechanics; it's about buyer psychology. COD isn't merely a payment method. It's a tool for trust-building and risk reduction for the buyer. In Vietnam, where financial inclusion is still growing (only 48% of the population had bank accounts in 2025), and trust in online sellers isn't always high, the ability to pay for goods upon receipt is critical.
The buyer isn't saying, "I don't trust you." They're saying, "I want to ensure I receive what I ordered." This is a different psychology. And BNPL isn't "debt." For the buyer, it's about money management. They're not saying, "I can't afford this." They're saying, "I want to get it now and pay conveniently." This lowers the barrier to purchase and impacts conversion as significantly as discounts or free shipping.
It seems logical that the more payment methods offered, the better. In reality, that's not always the case. It's crucial to offer the right methods. Research indicates that security is the primary factor when Vietnamese consumers choose a payment method. Inefficient payment infrastructure leads to significant losses. Across the Asia-Pacific region, companies annually lose approximately $72 billion due to checkout inefficiencies. Integrated payment systems can reduce cart abandonment rates by 15–18%.
What I See from Operations
At VietSmart, we launch partners on Shopee Mall and other platforms, and from our operations in Ho Chi Minh City, I observe clear patterns. Brands that focus solely on digital payment methods traditional to the West lose a significant portion of their audience. This is especially noticeable in regions outside major cities, where bank card penetration is lower, and the preference for COD is stronger.
We observe that actively promoting marketplace-owned wallets, such as ShopeePay, combined with exclusive promotions like vouchers and free shipping, significantly boosts repeat purchases. This isn't about discounts for the sake of discounts. It's about creating a loyalty ecosystem where payment convenience is integrated into the overall customer experience. Brands successfully implementing BNPL services report not only increased conversion but also a higher average order value, as buyers are willing to purchase more expensive items by spreading payments over time.
Walmart doesn't open stores where there's little money. The same principle applies here: if the majority of your potential customers pay via COD or e-wallets, you need to be where they are. This isn't about what *should* be; it's about what *is*. It's not about "they *should* pay by card" – it's about "we *must* offer all convenient payment methods."
What to Do About It
Your next move isn't just about adding a payment button. It's a strategic decision:
- Integrate COD as a fundamental option. Don't try to eliminate it; instead, manage the risks. Use it to build trust, especially for new customers and in categories where physical inspection of the goods is important.
- Prioritize local e-wallets. MoMo, ZaloPay, ShopeePay are not just apps; they are a part of Vietnamese daily life. Offer them, and even better, leverage their built-in marketing tools like cashback and vouchers to incentivize sales.
- Strategically offer BNPL. Especially for mid-to-high priced items. Emphasize the convenience of installment payments rather than their cost. This doesn't change the amount; it changes the type of decision for the buyer.
- Utilize VietQR for fast and secure bank transfers. As this system has become ubiquitous, it provides instant transactions and a high level of trust.
- Analyze data on abandonment at the final payment stage. Check your account statistics on Shopee or Lazada. See at what point buyers are dropping off. If you observe a high percentage of abandonments at the payment method selection stage, it's a clear signal that your methods don't align with audience expectations.
At VietSmart, we help brands enter the Vietnamese e-commerce market, including full payment gateway setup and sales funnel optimization tailored to local specifics. We know how to ensure stable initial sales within 60–90 days, providing not just a marketplace listing, but a ready-to-operate business model that works.