[Research Contribution] Opportunities and Challenges in Vietnam’s E-wallet Market: What Drives User Retention on MoMo?
29 May, 2026
Keywords: E-wallet, fintech, digital payment, MoMo, continuance intention
Against the backdrop of robust digital payment growth in Vietnam, e-wallets have become one of the key drivers of the digital economy. However, alongside opportunities, the market still faces many challenges related to competition and user behavior, among which customer retention has become a strategic priority for service providers. Therefore, a research team from UEH Mekong, University of Economics Ho Chi Minh City (UEH), conducted an analysis of the overall landscape of Vietnam’s e-wallet market and carried out a case study on the MoMo e-wallet to clarify the factors influencing users’ continuance intention.
Opportunities and challenges in Vietnam’s E-wallet market
The robust development of financial technology (fintech) has significantly changed Vietnamese consumers’ payment behavior. Within this trend, e-wallets have become a popular payment tool due to their convenience, fast transaction speed, and ability to integrate multiple services on a single platform. Among current platforms, MoMo is considered one of the leading e-wallets in the market, attracting tens of millions of users and playing a crucial role in Vietnam’s digital payment ecosystem.
However, the rapid expansion of the digital economy also brings many challenges. Users are increasingly concerned about safety and security as sophisticated forms of fraud, personal data theft, and cyberattacks targeting e-wallet users emerge. Additionally, market competition is intensifying, with over 40 active e-wallets alongside the strong development of QR code payment systems deployed by banks.
In this context, maintaining continuance intention has become a strategic priority for digital payment platforms. Although new user numbers are growing rapidly, customer retention depends on many factors such as system quality, information reliability, trust, social influence, and overall service experience.
Proceeding from this practical context, the research has outlined the overall picture of Vietnam’s e-wallet market and identified a gap, as few studies combine both technological factors and user psychological factors within the same model, especially in a context of rising fraud risks and increasingly fierce competition.
On that basis, the author team conducted a case study on the MoMo e-wallet to analyze the factors affecting Vietnamese users’ continuance intention. The study not only tests and extends the Information System (IS) Success Model in the local context but also provides valuable insights for fintech enterprises and policymakers.
According to the proposed model, system, information, and service quality play foundational roles in shaping positive experiences, thereby influencing trust, intimacy, satisfaction, and ultimately continuance behavior. In addition, privacy and security concerns, along with social influence, are considered important psychological factors. Notably, the factor of platform intimacy was added to clarify the connection between users and the service, thereby suggesting directions for communication and customer care strategies.
Key determinants of users’ continuance intention towards E-wallets
To explain continuance behavior in digital environments, research shows that experience, trust, and perceived value are core factors. For e-wallets, these factors are even more important due to their inherent connection to financial transactions and high requirements for security and convenience.
The research findings reveal several notable insights:
- First, system quality has a strong impact on trust, satisfaction, and intimacy. A user-friendly interface, fast processing speed, and a stable system provide users with a smooth experience, thereby increasing their attachment to the application.
- Second, information and service quality did not show the expected clear effects. This may be because users access information from multiple sources, leading to a lack of consistency. At the same time, service experience also depends on partner affiliates, causing user perceptions to become dispersed.
- Third, social influence affects trust and satisfaction but does not directly impact continuance intention. Once the market has matured, users tend to rely more on their personal experience than on others’ opinions.
- Fourth, trust is no longer a decisive factor. In a context of increasing fraud risks, a cautious mindset makes trust unstable and insufficient to sustain long-term usage behavior.
- Finally, satisfaction and intimacy are the two strongest influencing factors. When users feel familiar with the interface and form usage habits, they tend to remain engaged long-term. This also provides a basis for platforms to focus on personalizing the experience and building a sustainable service ecosystem.
Implications for businesses in the E-wallet market
Based on the research findings, the author team proposes several important implications for e-wallet and fintech enterprises, specifically:
- First, enhance system quality by improving processing speed, stability, and interface optimization to create a seamless user experience.
- Second, standardize information across partner channels, ensuring consistency, reliability, and limiting fake news or non-transparent promotions.
- Third, promote safety and security communications, provide guidance on fraud identification, and integrate direct in-app alerts.
- Fourth, personalize the experience and develop loyalty programs to increase the sense of intimacy – a key driver of continuance behavior.
- Finally, improving the overall service experience remains an important foundation for reinforcing satisfaction and retaining users.
Therefore, this research not only helps clarify the factors influencing continuance intention towards e-wallets in Vietnam but also adds empirical evidence to the fintech field and provides a practical basis for enterprises to build customer retention strategies. In the long term, understanding user behavior is a key factor in enhancing competitiveness and promoting sustainable digital transformation, while also suggesting directions for policymakers to refine the legal framework and strengthen user trust.
View the full research article “Opportunities and Challenges in Vietnam’s E-wallet Market: What Drives User Retention on MoMo?” HERE.
Authors: M.A. Ly Thi Diem, M.A. Vo Thanh Truc, M.A. Le Thi Hong Gam, M.A. Phan Thi Thuy Kieu, M.A. Nguyen Ngoc Tuan – University of Economics Ho Chi Minh City (UEH)
This article is part of a series disseminating research and applied knowledge with the message “For a More Sustainable Mekong,” under the “Research Contribution For All” program implemented by UEH. UEH respectfully invites our readers to stay tuned for the next edition of the UEH Research Insights newsletter.
News, photos: Authors, Department of Admissions – Communications of UEH Mekong, Department of Communications and Partnerships of UEH
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