Drivers of Cashless Payment Decision in Vietnam

ABSTRACT While sufficient infrastructure is a prerequisite for a cashless economy, understanding what drives individuals to choose cashless payment methods over cash at points of sale where both options are available remains underexplored. This study investigates the factors influencing cashless payment decisions in Vietnam, a developing country where cash dominates, accounting for 86% of transactions. Using survey data from 405 individuals in Ho Chi Minh City and Can Tho City, collected pre‐COVID‐19, the research applies conditional logistic regression to analyse choices across six common points of sale venues offering both payment options. Results reveal that younger individuals under 40 years old, women, higher‐income earners, students, office workers, and those who trust in payment safety are more likely to opt for cashless methods. Unlike prior studies that focus on specific payment tools, such as credit cards, this paper examines all cashless forms, offering a broader perspective. The findings suggest policies to enhance trust, target youth, and incentivise businesses, contributing to Vietnam's digital economy goals.