Vietnam’s embrace of biometrics for payments a double-edged sword

IN FOCUS

In today’s newsletter, we look at:

• How Vietnam’s new digital payments regulation is shaking up the industry
• The effects of increasing Europe-China tension on Ant International’s expansion plans

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Hello,

I switched from an iPhone to an Android phone this month, and one thing I miss is the robust facial recognition functionality of Face ID. It was more convenient than a fingerprint scanner and more straightforward to use.

It’s also secure enough, with my Filipino banking and e-wallet apps allowing users to log in and transact via Face ID. In Vietnam, however, facial scans for certain payments have become a requirement, rather than an option, as the government looks to fight online fraud.

In this week’s premium story, my colleague Peter dives into the growing pains arising from the new rules, and how it may affect the wider fintech landscape in Vietnam.

Industry players have noted that the extra tech and human resources costs of compliance could hurt smaller fintech firms more than established ones.

However, as Vietnam continues to move toward a cashless society, and with online fraud estimated to have cost Vietnamese consumers US$393 million in 2023, it might be better to bite the bullet now.

— Miguel

THE BIG STORY

Facial scan to buy banh mi? That’s not too far off in Vietnam

Image credit: Timmy Loen

All online transactions in Vietnam exceeding US$393 now require a facial scan. Surprisingly, some fintech players see this as a potential boon.

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