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Digital money is becoming more and more popular across Southeast Asia, with Indonesia leading the way.
Covid-19 has accelerated this move but it is also driven by more general factors, including: the wider acceptance of digital financial technology; the rise of e-commerce; and an increase in demand for contact-free, cashless payment options ( Techwire Asia).
What does this mean for money transfer?
When it comes to making a money transfer to Vietnam, as many of our customers do, this move towards digital is very important. Vietnam has the second-fastest growing economy in Southeast Asia behind Indonesia. Both poverty and unemployment are currently low due to Vietnam’s continuing economic growth, and the country is undergoing rapid urbanization.
Some 70% of the population have access to the internet, and 93% have mobile connections ( Women’s World Banking, June 2020).
However, in 2019 over 90% of payments for online purchases were made in cash.
The barriers to financial digitalization are therefore mainly thought to be: a lack of knowledge about services that are available, a limited understanding of the costs of using digital financial services, and limited access to these services.
That’s where Small World steps in.
How can I send money to Vietnam?
Small World offers five ways to transfer money to Vietnam:
- Bank deposit: Send money direct to a bank account
- Mobile wallet: Deposit money in a mobile wallet
- Cash card reload: Top-up a prepaid cash card
- Cash pick-up: Send money for cash pick-up - click here to see all the collection locations
- Home delivery: Your transfer is delivered straight to a home address
While home delivery and cash pick-up are the most popular, and are still great ways to get money to your friends and loved ones, there are some great reasons to choose the digital options — mobile wallet or bank deposit — instead.
Why choose to send money to Vietnam online?
Saving money in fees and rates It is worth looking into the exact fees and costs associated with digital transfer at the time you actually want to send the money. Do not, however, assume that sending money digitally is more expensive than cash pick-up. Look at your options either by registering on the Small World website, visiting an agent near you, or speaking to an advisor at our call center.
The main costs you are looking out for are transfer fees and the current exchange rate. See our recent blog post for more information on what to look for in transfer fees and rates when sending money home.
Making larger payments less regularly can work out being far more cost effective than sending small amounts of money more regularly.
Saving time
The time you will save is one of the most compelling reasons to send money online. If you send money to Vietnam for cash pick-up takes more time — both in terms of the transfer window and accessing the money — than transferring money into your recipient’s bank account.
Same perks as cash pick-up
Once the money is in your recipient’s account, the money is still available as cash should your recipient want to withdraw it from an ATM and use it as they are used to.
Access to digital services
In addition to this, an online transfer opens up a whole new world of possibility. Digital money can be used in many ways. And although Vietnam is still relying on cash, the move to digital is imminent. In an interview with Techwire Asia, Hoang Quoc Quyen, a PR executive from Vietnamese e-commerce site Tiki, highlighted the foundations that have already been laid in Vietnam for the arrival of e-commerce, and the possibilities of digital payments.
It is wholly possible that Vietnam will bypass the card-based payments culture that many developed countries have been relying on, and move straight into completing online purchases using digital money or e-wallets.
The most popular ways to send money to Vietnam are:
- Bank deposit: Send money direct to a bank account
- Cash pick-up: Send money for cash pick-up - click here to see all the collection locations
- Home delivery: Your transfer is delivered straight to a home address
