The Vietnamese e-wallet market: Opportunity & challenges. Case study: Understanding customers’ continuance intention when using Momo

Abstract

The e-wallet segment contributes remarkably to the development of Vietnamese digital payments, accounting for an increasing transaction value estimated to reach over $48 billion by 2025 (Ngoc, 2023) Despite impressive rising figures, e-wallets still face the challenge of burning capital to attract users, and retaining loyal customers becomes a key to business growth. This study aims to summarize the opportunities & challenges of the e-wallet market in Vietnam. Furthermore, we analyze a case study to understand customers’ continuance intention when using Momo – the leading e-wallet in Vietnam. To achieve the research goals above, the authors surveyed 293 Momo customers to determine the important elements in the context of users' continuance intention towards e- wallets by combining the extended IS success model with the psychological aspects. Additionally, the survey was conducted using the sampling method, convenient non-probability, and a structured interview questionnaire. The Smart-PLS 4.0 software was used to analyze data and test the proposed model. The results show that intimacy and satisfaction positively influence continuance intention. The flow of trust-intimacy-satisfaction indicates an important role in this context since it is affected by system quality, privacy & security concerns, and social influence like the model suggested initially. Nevertheless, the hypotheses related to information and service quality are not supported, and there is no direct relationship between social influence and continuance intention after analysis due to the characteristics of our market and Momo’s service. This study provides specific theoretical benefits for academics, service providers, and customers regarding e-wallet behavioral intention.