Apple Pay has little effect on the domestic e-wallet market because it only has iOS users, requires payment locations to have POS machines, and only accepts international payment cards.

Apple Pay was formally introduced in Vietnam on August 8. Apple created this electronic wallet program to benefit users of the iOS environment. Users can therefore pay for services online by simply adding a physical credit card to the application.

Users only need to hold the top of the iPhone or Apple Watch screen close to the contactless card reader while double-pressing the side or home button, authenticating with Face ID or Touch ID, and making a payment.

A one-time dynamic security code and the device’s Face ID, Touch ID, or password are used to authenticate every Apple Pay transaction.

Although it was introduced in 2014, Apple Pay has only recently become officially available to Vietnamese citizens. The arrival of the e-wallet has excited Vietnamese iOS users.

Just on August 8, several users demonstrated the incorporation of credit and debit cards into Apple’s e-wallet, and numerous well-known figures in the computer industry did live streams demonstrating how to utilize them. Pay for services at retail locations.

Meanwhile, a media representative of MoMo also shared that the impact of Apple Pay on domestic e-wallets is yes, but negligible because Apple Pay payment points are high-end brands and must have a POS device to do it.

From a user perspective, Mr. Nguyen Tran Duy Phuong, a programmer in Ho Chi Minh City, said that Apple’s e-wallet currently has not had much impact on the domestic e-wallet market because it only serves Apple’s user group (those with a higher income and quality of life) is the main group.

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Besides, Apple Pay is only a payment method, while the provision of services is done by partners, E-wallets like MoMo often follow the trend of super-app integration, so many services will provide it in your wallet, which Apple Pay cannot do.

Another thing, according to Nguyen Tran Duy Phuong, is that e-wallets in Vietnam currently support both domestic cards and bank account links, while Apple Pay does not. Therefore, users who do not have an international payment card will still choose e-wallets, moreover, with the specificity of the Vietnamese market, not all points of sale have contactless POS machines, especially shops. For small grocery stores or bars, users will also have to use e-wallets like MoMo or ZaloPay to scan the payment code.

Sharing the same opinion, Mr. Tran Duc Trung from the Exquisite forum also said that e-wallets in Vietnam are currently too strong, the application is very good on Android and iOS platforms and can be linked with Many banks to support payment. This is something that payment wallets like Apple Pay find difficult to do.

Users of Apple Pay in Vietnam have said that the e-wallet is incredibly responsive on both the iPhone and the Apple Watch and that payment is incredibly quick and easy.

Many people are concerned about whether Apple’s e-wallet, which competes directly with e-wallets like ZaloPay and MoMo in the domestic e-wallet industry, poses a threat to the market there.

Le Lan Chi, CEO of ZaloPay, addressed this concern with VietNamNet during the recent press conference to showcase multi-function QR codes and stated that Apple Pay only takes credit cards as a form of payment. Due to the low user penetration of these cards in the domestic market, the primary payment and debit cards will not have a significant impact on domestic e-wallets.

Besides, it is worth noting that ZaloPay has just announced that the official e-wallet is one of the first payment service providers in Vietnam for Apple Pay. This means that business partners who are cooperating and using ZaloPay Payment Gateway (ZaloPay Gateway) can open a new payment option, Apple Pay, for their customers.

Should you use Apple Pay in Vietnam?

The answer is too obvious: if you meet the necessary and sufficient requirements, which include having an Apple device that supports Apple Pay and doing business with one of Apple’s partner banks (as I said above), then absolutely yes. If you want the most comprehensive information, you can head straight to the Bank branch you are now using.

Due to the safety, security, and macroeconomic regulatory requirements of each country, developing economies will strive for touchless payment before going towards cashlessness. Therefore, taking part in this digital shift is quite acceptable.

To protect themselves and reduce unneeded risks, consumers must also arm themselves with the required knowledge about these touchless payment options.

The fundamental details concerning Apple Pay in general or Apple Pay in Vietnam specifically are covered above. I hope this new product will be a terrific experience for Apple consumers in Vietnam.

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