Visa has announced a partnership with SmartPay, a leading Vietnamese fintech company, to spread digital payment solutions to Viet Nam’s micro, small and medium-sized enterprises (MSMEs).

Together, Visa said, the two companies will empower MSMEs with essential tools, such as point-of-sales (POS) terminals, that they need to compete in the burgeoning digital payment era.

“A lack of infrastructure, especially POS terminals, is becoming a profound challenge for MSMEs to keep up with the digital transformation taking place in Viet Nam. Demand for POS devices in the second quarter of 2022 was about 1.2 million devices, and SmartPay’s goal in the next three years is to provide 325,000 POS devices, or nearly 30 per cent of the total market share,” said Marek Forysiak, SmartPay’s Chairman.

“This partnership is part of the broader effort of Visa and SmartPay to make cashless payments more accessible in Viet Nam by expanding the number of merchants equipped with SmartPOS to accept non-cash payments, especially Visa card payments. It will give merchants payment solutions that can boost their competitiveness in the digital era,” said Jeni Mundy, Visa global head of Merchant Sales and Acquiring.

While cash use is still widespread in Viet Nam, consumers are increasingly turning to cashless payment options. According to the Visa Consumer Payment Attitudes Study 2022, cash usage has fallen from 2021 while 89 per cent of respondents said they use mobile wallets and 85 per cent use credit and debit cards.

According to the study findings, 79 per cent of consumers expressed dissatisfaction with the limited payment method options available at small retailers, while 74 per cent of respondents emphasized the urgent need for small retailers to embrace a wider array of digital payment methods. These insights into public opinion point to a substantial untapped opportunity for MSMEs to effectively broaden their customer base and significantly enhance sales performance.

“Small businesses can build on their foundation of digital capabilities to find new growth and thrive,” said Dung Dang, Visa country manager for Viet Nam and Laos. “Payments are not just about completing a sale, but rather, about creating a convenient and secure experience that reflects a company’s brand across platforms and benefits both the business and the consumer.”

Visa has spearheaded a range of impactful initiatives aimed at supporting small businesses to embrace digital payments and attain increased participation in the digital economy. Meanwhile, SmartPay has been providing cashless payment solutions such as SmartQR and SmartPOS, business management solutions such as SmartShop, and integrating OPOS sales management software on SmartPOS devices. — VNS