India’s adoption of a Unified Payments Interface (UPI) offers lessons for Vietnam as it looks to grow online payments.

During the “QR Code Payments: Transparency and Unlimited Experiences” conference,
Ms. Sonal Asnani, Head of Asia-Pacific at NPCI International Payments, shared India’s
experience from standardizing QR codes and expanding digital payments across all
population groups to coordinating multiple stakeholders in the banking-financial
ecosystem, offering practical lessons for Vietnam as digital transformation and
financial inclusion rise on the strategic agenda.

She believes Vietnam’s success in expanding QR payment acceptance will depend
on several core principles: standardizing payment infrastructure, particularly QR
codes and central routing systems; ensuring openness and neutrality to avoid platform
monopolies; strengthening multi-stakeholder collaboration; and designing services
with users, from small businesses to ordinary consumers, at the center.

Scaling inclusion

India launched the Unified Payments Interface (UPI) in 2016. This unified payment
platform allows users to transfer money, pay bills, and shop both online and in-store
without relying on cash or credit cards. In October 2025, the UPI processed more
than 20.7 billion transactions worth roughly $310 billion, accounting for over 80 per cent of all digital
payments nationwide.

Across the Asia-Pacific region, QR code payments are emerging as a dominant
trend thanks to their convenience, low cost, and ease of deployment. China and India
are the two leading markets in terms of adoption. In both countries, people use
QR codes for virtually every daily transaction, from buying vegetables at the market
and hailing a taxi to paying utility bills and accessing public services.

This widespread usage is driven by two key factors: low investment costs for
merchants and easy access for end users. Without the need for dedicated POS (point-of-sale)
devices, shops, street vendors, and small businesses simply print a QR code and
place it at the checkout counter. With just a smartphone, even a low-cost model,
consumers can make instant payments by scanning the code.

In the early phases of India’s digital payments journey, most transactions
were P2P (Peer-to-Peer), meaning money transfers between individuals. However, this
model neither recorded business revenue nor created clear cash flows that could
support access to credit or tax administration. The shift to P2M (Peer-to-Merchant)
marked a turning point, enabling businesses to formalize revenue, helping tax authorities
reduce leakage and allowing small merchants to access credit and scale their operations.

The UPI’s breakthrough lies in its high degree of interoperability and standardization.
The ecosystem enables users to choose from more than 75 different applications to
make payments, as long as those apps comply with UPI technical standards.

Merchants only need a single QR code for all transactions, without being tied
to a specific provider. Transactions are processed in real time at reasonable cost.
This creates a level playing field, prevents platform monopolies, and encourages
innovation in financial applications and services.

Notably, India’s experience in fostering cooperation between banks, fintech
companies, and regulators illustrates the power of multi-stakeholder coordination
in deploying financial technology. Clear roles and strong consensus have enabled
the UPI to grow rapidly, from urban centers to rural areas and from individual users
to businesses and government agencies.

As Vietnam accelerates the development of its digital economy, lessons
from the UPI are highly relevant. Vietnam is already among the fastest-growing cashless
payment markets in the region. However, the coverage of P2M acceptance points remains
limited. Broad adoption of standardized QR codes and encouraging merchants to accept
P2M payments could be a breakthrough measure, boosting transaction efficiency while
extending digitalization to all corners of the economy.

Crossing borders

According to experts, the next stage of Vietnam’s payment development will
go beyond domestic “scan to pay” and move towards cross-border connectivity. To
achieve this, Vietnam must standardize QR codes in line with international norms
and expand payment acceptance points both inside and outside of the country. “For
international visitors, especially tourists from India who are familiar with the
UPI, being able to pay through compatible methods such as QR payment will enhance
their experience and increase spending in Vietnam,” Ms. Asnani noted.

In fact, Vietnam already has the foundations to adopt and scale a similar model.
The national financial switching system (NAPAS), together with policies from the
State Bank of Vietnam (SBV) and the government promoting digital payments, lay the
critical groundwork for building an open, interoperable ecosystem that supports
real-time payments.

NAPAS will serve as the central hub for international connectivity, ensuring
a seamless experience for users: if they are accustomed to the convenience of domestic
QR codes, they should be able to pay in the same way when traveling abroad. Conversely,
international visitors to Vietnam, whether for business or tourism, will be able
to pay easily, helping stimulate consumption, increase spending, and enhance transparency
in foreign-exchange management and cross-border cash-flow monitoring.

At the same time, the SBV plays a leading role in implementing cross-border
local-currency settlement, enabling direct payments between countries in their own
currencies without using an intermediary currency. This approach reduces dependence
on third-party currencies and strengthens the central bank’s control and the role
of the VND in international transactions.

For the payment ecosystem to grow sustainably, banks and fintech companies
must work closely together to build merchant acceptance infrastructure. This is
not only a responsibility but also an opportunity: Vietnam’s potential for expanding
cashless payments remains substantial, offering benefits to both service providers
and consumers.

A key pillar in upgrading QR transactions from transfers to payments is policy
support that encourages businesses and merchants to change their behavior. “When
shifting from P2P to P2M, small merchants and household businesses also gain tax
advantages, as they receive appropriate incentives when adopting formal payment
methods,” Ms. Asnani said, noting that the Indian Government implemented fiscal
policies to accelerate QR payment adoption.

In the long term, Vietnam could consider offering tax reductions based on the
share of revenue generated through cashless payments. This is not only a financial
incentive but also a clear signal of national policy: prioritizing digitalization,
transparency, and modernization of the economy through modern payment practices.

VET-Ky Phong