Title: The Impact of Cashless Payments on Personal Consumption Behavior and Domestic Consumption Growth: The Case of Rural Vietnam
Authors: Giang Nghiep Huy, Nguyen Thanh Quy
Volume: 9
Issue: 9
Pages: 72-78
Publication Date: 2025/09/28
Abstract:
E-wallets, QR codes, and bank transfers are propelling Vietnam towards a government-sponsored cashless economy. There is extensive scholarship on the urban and middle-class consumers, but the rural population-and their financial behaviors that are slowly but profoundly shifting-remains overlooked. This paper provides insights on how the shift to cashless systems impacts the spending behavior of individuals living in rural Vietnam and, in turn, domestic consumption aggregate. To analyze the effects of digital transactions on spending, saving, and demand, we conducted surveys and interviews within a mixed-methods framework. The findings indicate that cashless payments not only correlate with increased expenditure but also with the adoption of new financial habits that present both growth opportunities and financial risk. This research contributes to the discourse of financial inclusion and consumer-driven economic growth in developing countries where gaps remain largely unaddressed.