Regional Expert

Can Samsung Pay Survive in Vietnam Where Over 90% of Financial Transactions Are Done With Cash?


The sản phẩm điện thoại payment service allows the user khổng lồ save their credit/debit card’s information onto their smart phones và use their phone to bởi transactions by placing their phone gently onto the payment devices.

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Since mobile payment service is compatible with the existing conventional card payment terminals, more than 90% of all the stores in Korea as well as the United States are using it.

Samsung Pay, one of điện thoại payment service, is equipped with Nexsign, a biometric authentication solution made by Samsung SDS. Customers can receive enhanced security for their điện thoại payment services with their fingerprint/iris verifications.

For this article, we will take a look at how the Samsung Pay di động payment service is being used in Vietnam & the issues that comes along with the usage. It will be analyzed by engineer Kim Isaac, a regional expert of Vietnam.

If you go on a trip just by relying on ‘Samsung Pay’ và bring no cash…..On Vietnamese IT news website, some Vietnamese have held a strange themed trip using Samsung Pay. The plan was khổng lồ go on a trip around Vietnam, except during the trip every payment had to lớn be paid using Samsung Pay service. The idea was fun and brilliant but the reality was different. Despite their expectation that this trip will be fun which caused them lớn flutter, it was clear that traveling with Samsung Pay as the only method of payment had its downsides. Whenever they tried khổng lồ pay with Samsung Pay, the shop owners who were not accustomed to di động payment services stared at travelers with their baffled expressions. A strange situation where the customer had khổng lồ explain their payment method occurred.

What is the real reason behind why the simple & convenient ‘Samsung Pay’ couldn’t settle?I was curious why Samsung Pay service which was largely successful in South Korea did not earn much attention in Vietnam. At the kết thúc of the second half of 2017, Samsung Pay initiated its first service in Vietnam, and during the first 3 months, Samsung Pay users increased khổng lồ 209,000. Also, it received an award at the ‘Tech Awards 2017’ for being the definitive mobile payment solution in Vietnam.

Samsung Pay also used aggressive kinh doanh and pr strategies lớn make itself known to lớn the people of Vietnam. Due to lớn its effort, when people in Vietnam are asked if they know Samsung Pay, about 7 out of 10 people answered yes. However, when asked if they want to use Samsung Pay, they answered that they don’t really have the reason khổng lồ use it, showing a reluctant reaction towards the service.


I assume it is due to lớn these three reasons.

First, there are geographical limits. Only large cities like Hanoi và Ho chi Minh thành phố can use card as their payment services, therefore for the people living in other smaller areas vị not find services lượt thích Samsung Pay to lớn be much useful.Second, there are many smartphone that is not compatible with Samsung Pay. Most people in Vietnam use different or cheaper brand for their smart phones.Third, people of Vietnam prefer cash transactions rather than card settlements. 90% of their transactions are done through cash, và only 30% of the citizens have bank accounts (“Vietnam’s Payment Preferences: Four Trends khổng lồ Watch”, Vietnam Briefing July 12, 2017.)I deduce that, due to lớn their low confidence towards banks & their low income, they vì not have any reason lớn use ngân hàng services. Samsung Pay requires you to have credit cards or debit cards in order lớn use services, therefore cannot be used by most of the people in Vietnam. However, Vietnam still does have mobile payment services lượt thích Samsung Pay.According khổng lồ the article ‘Mobile Payments Vietnam’, since December 2014, State bank of Vietnam (SBV) authorized the Vietnamese bank and non-banking institutions khổng lồ provide payment services in Vietnam, and currently 27 non-banking institutions have received their licenses (, April 4, 2018). However, these payment services, unlike Samsung Pay, allow the users to lớn use the ATMs khổng lồ charge their account and use it directly without any banking card services. This allows them khổng lồ have access to mobile payments services without the help of banks. However there is still the problem that with the exception of large cities, most areas of Vietnam do not have ATMs.Lastly, most of the shops in Vietnam do not have the devices ready for thẻ transactions, or does not allow payment through cards if it is below a certain amount.

Can a 90% cashless society be possible by the 2020?Vietnam aims khổng lồ change their economy so that 90% of their transactions are done cash không tính tiền by decreasing cash transactions and increasing electronic payments (“Vietnam’s Payment Preferences: Four Trends lớn Watch”, Vietnam Briefing, July 12, 2017). Not only that, the National Payment Corporation of Vietnam (NAPAS) is seeking to expand its mobile payment service in parallel with plastic thẻ issuance.

As such, the Vietnamese government and their Federation of Banks are working hard to increase their credit thẻ payment ratio. If their regulatory change, implementation of new technologies, proliferation of online banking, introduction of Fintech into enterprises, and increased usage of internet all leads khổng lồ their success in establishing their ‘90% of transaction done with no cash society by 2020’, the success rate of Samsung Pay in Vietnam will also increase. However, at the moment it seems lượt thích it will require more time.

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*NAPAS: a provider of financial switching services and electronic clearing services in Vietnam


By Regional Expert Kim IssacEngineer_Strategic Development_Samsung SDS


Regional Experts, Regional experts system are Samsung"s global talent development program. Samsung started in 1990 & has trained more than 5,000 local experts in 80 countries. The regional expert system makes a great contribution to Samsung becoming a global company. At present, our company has dispatched 19 regional experts in about 6 countries.