to evaluate the tendency of non cash payment of the vietnamese during pandemic of covid 19

The purpose of the study is to analyze i the advantages of the cashless shopping tendency, ii the impact of Covid-19 on the cashless shopping trend; iii customer psychology when changing

TO EVALUATE THE TENDENCY OF NON-CASH PAYMENT

STUDENT ID: 001262107 FULL NAME: NGUYEN DINH KHANH INSTRUCTOR: VO MINH VINH

Abstract

The Covid-19 pandemic has adversely affected the economic activities of many countries In Vietnam, Covid-19 also has a negative impact on consumer behavior and activities Because of the negative effects on health This is the main reason leading to the restriction in shopping outside of the majority of Vietnamese However, this is also the trigger that makes the tendency of online consumption and cashless shopping become more popular than ever The purpose of the study is to analyze (i) the advantages of the cashless shopping tendency, (ii) the impact of Covid-19 on the cashless shopping trend; (iii) customer psychology when changing the trend of cashless shopping; (iv) safety; and (v) behaviour of customers using the internet and shopping online during the Covid-19 pandemic

The study was carried out based on a quantitative approach, with a scale of 385 survey samples collected in Vietnam, Ho Chi Minh The main object of the study is the young generation Collected data samples will be evaluated and checked using SPSS software Next, the collected data will be minimized by the EFA scale, in order to reduce a large data set into a smaller, more specific and easier to observe Finally, the data will be checked for authenticity based on the Cronbach Alpha scale

Through the researched data, we will realize that the market's digital transformation trend is also under the negative impact of Covid-19 Accurate insights into new consumer trends will help businesses keep up with market changes to adapt to the Covid-19 pandemic

Chapter 2: Literature review 12

Introduction 12

Theories: 12

Theory of Technology Acceptance Model (TAM) 12

Theory of Reasoned Action (TRA) 13

Empirical studies: 13

Hypothesis: 14

Impact of Covid -19 on society behaviour 15

E-commerce market during the covid pandemic 15

Cashless payment / Contactless payment tendency 16

Chapter 1: Introduction Introduction:

In this chapter, the research background, vision and issues the research is aiming at will be presented In addition, the objectives, questions, and hypotheses surrounding the problem are also mentioned in this sectio n.

Background

An overview of Covid – 19’s impact on business activities

According to Donthu and Gustafsson (2020), Covid-19 belongs to one of the pandemics that appear cyclically every 10 to 50 years Potter (2001) made the observation that the emergence of new virus combinations often occurs as the global population increases Accompanied by close human- -animal contact on a regular basis, the ability to spread a new virus becomes torapid and unpredictable Preventive measures are the preferred and minimal solutions that people can do to deal with the current Covid-19 pandemic, as well as prevent other diseases in the future

Figure 1: Covid 19 Source: Google–

The consequences of epidemics have had a strong and lasting impact on the socioeconomic status of many countries in the past (Jorda, Singh, & Taylor, 2020) At present, the authenticity of these studies remains unchanged On the other hand, these consequences are long-term and difficult to predict and estimate in terms of damage

Most effectively, direct contact activities should be limited And step up measures to contact, communicate, and exchange remotely Therefore, digital transformation is a lifeline for businesses in the present time as well as in the future Because it solves two important problems, in the context of social activities and trade stagnation, is maintaining economic activities and protecting public health However, the measures also bring about limitations but are not significant

The tendency of non-cash payment during the pandemic Covid - 19

To maintain economic activities as well as enhance public health protection, more and more forms of cashless payment are encouraged According to Farr (2020), Australia promotes shopping and payment methods through Visa cards because of the fear of contaminated money

Figure 2: Cashless payment Source: Google

In Vietnam, the pandemic has strongly promoted cashless payments Vietnamese people are using cards as well as other forms of electronic payment more often According to a VISA survey, 65% of users carry less cash and about a third of them stopped using cash after the pandemic; the number of e-wallet users is increased up to 76% (Cashless payments still booming after the pandemic 2022)

In terms of infrastructure, more than 80 banks in Vietnam provide e-banking services; 44 banks built a mobile banking system; 45 fintech companies provide payment intermediary services More than 90,000 stores across the country accept cashless payments (Cashless payments still boom after the pandemic 2022) Based on the above statistics, we can see that Vietnam is gradually catching up with the tendency of converting non-cash payment methods The infrastructure is fully built and the quality of operation is regularly upgraded Customers' consciousness in digital transformation is also ready for innovations to adapt from crisis to epidemic

The digital payment giant - VISA has predicted that the ability of online shopping and online payment services will be sustainable because it will not be deeply affected by the epidemic At the same time, they will become a solid basis for consumers as well as businesses to not be interrupted in economic activities

Theoretical problems

According to Kotarba (2018), the concept of “digital transformation” (DT) is exploding massively due to the development of technology “Digital transformation” is applied in many different fields, in which, business enterprises are also gradually converting their traditional business models to digital business models (or digital businesses) By applying new technologies such as Big Data; the Internet of Things (IoT); Cloud Computing (Cloud); etc Even the operating structure has been changed, through digital technology

Besides, digital transformation also helps businesses overcome many crises caused by natural disasters or epidemics Specifically, the recent Covid-19 pandemic Thanks to digital transformation, businesses can keep up their management activities or other operations on the internet platform without having to completely shut down (Digital transformation helps enterprises adapt to the new normal 2022)

In business, many SME businesses have switched from in-store purchases to e-commerce platforms such as Amazon, Shopee, eBay, etc Even large businesses are adapting and moving their businesses to the internet After a period of severe impact due to Covid - 19, businesses still maintain both online and offline modes of operation in parallel, in order to expand the business market as well as prepare a backup operation measure before the terrible impacts of epidemics (such as Covid-19) in the future (Kudyba, 2020)

The transformation in the form of traditional business to digital makes consumers also change their buying behaviour from traditional to online shopping Accompanied by online payment

methods such as bank cards, e-wallets and bank transfers Since then, it has become the trend of "cashless payment".

Figure 2: Contactless payment method Source: Google

From the concept of "cashless payment", the technology has been improved and allows the implementation of a more modern payment model that is "contactless payment" This form is explained as a transaction by card (without direct contact) or via mobile phone This process allows the clients to perform the transaction without having inserted a card into the reader and enter the PIN (Wilkinson, 2022) Instead, the user simply brings the card close to the reader (without touching it directly) to complete the transaction (Wilkinson, 2022)

Issue Statement

As the discussion above, the impact of epidemics on humans is mainly through close contact (Potter, 2001) Therefore, "contactless payment" is the key to minimizing direct contact activities in economic activities This solution is becoming more and more popular, due to the high practical benefits It also reduces psychological stress and anxiety for customers, making them feel safer when carrying out daily shopping activities

According to Vanpraet (2022), former director of PXP Financial, said that Covid - 19 affected commerce and retail in Europe, making consumers want to move towards a “cashless society” In a study by IBS intelligence (2021), 41% consumers from six countries in the European region felt optimistic about the decision Poland is the first country where 54% support the new trend; followed by Italy with 49%; Spain holds 42%; the UK with 40% Only Germany and the Netherlands disagreed with disapproval where a rate of approximately 33%

e-Looking at the studies and statistics of European countries, it can be seen that the trend of converting the form of "cashless payment” is a new trend in the future Because of the convenience, safety, flexibility, and rapid increment of internet users due to the impact of the epidemic, "cashless payment" will become an indispensable tool at present This tendency will become a mandatory standard in the future

Capturing the psychological response of customers to the crises from the Covid-19 pandemic will help businesses come up with many appropriate strategies to meet the market's demand for "safe consumption" This is extremely important for the survival of businesses in Vietnam

Research Objectives

This study focuses on deeply understanding the behaviour, thinking and psychology of young Vietnamese in the trend of "cashless payment" Moreover, the report will also provide a lot of information about the innovation in the trend of electronic payment in the Vietnamese market Therefore, the results brought from this report will provide a lot of useful information for many domestic enterprises in the process of adapting to the new payment trend As well as a tool to maintain business operations against threats from the epidemic

This research will focus mainly on the rate of use of non-cash payment methods by young people in Vietnam in Ho Chi Minh City, in the context of Covid - 19 Ho Chi Minh has a high population concentration and infrastructure The population of Ho Chi Minh reached 9 million More than 18,000 ATMsThe population is built; over 101 million cards are released; and 294,000 POS machines exist (Mai, 2019) Moreover, 80% of office workers receive their salary through a bank account This is a suitable area for research because of the diversity and the large amount of data that can be collected to serve optimally for research

Research Question

Covid-19 has had a huge impact on the social life of multinationals Therefore, many people's normal consumption behaviours have also been changed to adapt to the harmful effects of the disease

The following research questions aim to identify and evaluate in detail the factors in the research model of “cashless payment conversion behaviour” of customers

Main Sub– –question:

(1) What factors drive the growth of cashless payments during the covid - 19 pandemic?

Research Methodology

This study will be carried out based on a quantitative method The questionnaire designed by using the Google form platform will be the tool to collect data from the majority of the young population, living in Ho Chi Minh The questionnaire will collect information related to participants about age, gender, internet usage habits, consumption behaviour, payment methods, etc Besides, the questions will focus on the psychology and thoughts of the survey subjects when using non-cash payment

After that, the collected data will be put into the analysis based on SPSS software, in order to find a satisfactory amount of data and eliminate the unsatisfactory variables Cronbach Alpha and EFA scales are also applied to improve the reliability of the collected data

Research Scope

Young users aged 18-35 and middle-aged from 35-45 are considered suitable for the requirements of the study But mainly 18-35 years old will be considered key in the study People in this age group adapt quickly to changes in technology as well as regularly use the internet for many common activities such as work, entertainment, shopping, or spending The total number of samples to be collected will be 385, the collection area is located in Ho Chi Minh City

Limitations

The goal of the study is to realize the change in digital transformation in customer payments under the impact of Covid - 19 However, data collection techniques are most likely to have errors and limitations determined; not 100% correct of the claim given There are three main problems that can often occur:

First, survey respondents do not give honest feedback The answers may be wrong due to the participant's lack of technical knowledge; do not understand the question; being distracted in the survey; etc

Second, the number of data samples collected (385 samples) is quite small compared to the population of Ho Chi Minh City (approximately 9 million people) Therefore, the research will only focus on a key segment of customers in the Ho Chi Minh City market, namely potential young customers who can quickly adapt to technology

Finally, the results of the study only provide general judgments and assessments about the trend of users in the Vietnamese market, specifically the Ho Chi Minh City market, in the tendency of "traditional payment” to “digital payment” Without specifically mentioning which type of digital payment will be most popular and likely to become mainstream Because the number of electronic payment methods in Vietnam is quite diverse and very wide Therefore, the survey will not be able to completely cover the electronic payment context in Vietnam with a limited sample size (385 data samples) As well as new electricity payment platforms that could appear in the future

Research Ethics

Information collected from participants will be strictly confidential and will not be provided to any third parties The above data sources will be used for research purposes only and not for any other purpose There will not be any prejudice or discrimination regarding religion, culture, or race in any of these questionnaires

Structure of the research

Chapter 1: Introduction

This chapter will outline the reasons for researching the selected topic

Chapter 2: A literature review

The discussion of the ideas, theories, and hypotheses raised for the research topic will be carried out in chapter two

Chapter 3: Research Methods

Chapter 3 will focus on techniques and methods for carrying out the research model Research methods; data collection and sampling techniques; research design; The scale; Adjustment and evaluation of results will be done in this chapter

Chapter 4: Results / Findings

The results of the study will be answered in chapter 4 From there, conclusions and evaluations are made based on those results

Chapter 5: Discussion

This chapter will summarize all that is learned through research, thereby drawing suggestions for businesses in the trend of digital transformation in payment

Chapter 6: Limitations, suggestions and conclusions

This chapter will highlight the limitations of the research topic, as well as propose solutions At the same time give useful price advice for businesses

Conclusion

Finally, the conclusion will restate the purpose of the study as a whole Then systematize the obtained result s.

Chapter 2: Literature review Introduction

In chapter 2, the hypothetical factors affecting the conversion of payment methods will be given for detailed analysis In addition, the effects of these hypothetical factors will also be compared with proven theories

In addition, in the daily chapter, the factors selected for research will also be defined to make

the report clear

Theories:

Theory of Technology Acceptance Model (TAM)

The theory of TAM often appears in reports and analyses on technology In cashless payment technology, the TAM model is applied to identify and analyze the factors affecting the acceptance of technology used by customers The theory of technology acceptance model (TAM) was built and developed by Fred & David (1989) Besides, this theory is also related to the theory of planned behaviour (TPB) of Liao, Chen & Yen (2007)

Both theories have supported each other in research to find out that the benefits of cognitive ability and convenience of new technology affect a person's behavior, and acceptance attitude, towards the adoption of new technologies a new technology, into the work or not And if technology is useful in helping users in their work, they are not interested in using it TAM's model shows that, when new technology is introduced, there are a number of variables that affect how and when users use it Therefore, perceived benefits and ease are the fundamental determinants of technology user acceptance factors (Davis, 1989)

Theory of Reasoned Action (TRA)

A survey of research management with different perspectives of the hypothesis of arranged conduct (Ajzen, 1985; Ajzen, 1987) is displayed, together with a dialogue of a few uncertain issues The hypothesis is found to be well upheld by experimental proof in common An individual's eagerness for performing distinctive sorts of conduct can be anticipated with tall exactness utilizing demeanours toward conduct, subjective norms, and recognitions of behavioral control; and this eagerness, at the side of recognitions of behavioral control, accounts for much of the change in conduct in reality Analysts have appeared that demeanours, subjective norms, and seen behavioral control are related to notable behavioural, regulating, and control convictions almost conduct, but their correct nature isn't clear Expectancy-value definitions are found to be as they were incompletely fruitful in managing these relations Ideal rescaling of anticipation and esteem measures is advertised as an implication of managing with estimation limits

Figure 4 TRA model :

Empirical studies:

Fintech stands for Financial Technology (financial technology), which is commonly used by all

companies that use the internet, mobile phones, cloud computing technology and open source software for the purpose of improving the efficiency of banking and investment activities (Dorfleitner, 2017). Cashless payments e-wallets, , and e-commerce are also covered by this definition

According to the research paper “Fintech and Financial Health in Vietnam during the COVID-19 Pandemic” by Nathan, Setiawan, and Quynh (2022) shows the level of financial literacy; convenience (Davis, 1989); Government support (Goo and Heo, 2020); User innovation (Lu et al, 2005); Attitudes (Aizen, 1993) are related to customers applying fintech (non-cash payment tendency) to their consumption needs The research method of the article is to collect primary data to determine the research objectives The selected research subjects are those who are knowledgeable and familiar with fintech technology And currently living in Vietnam The scale of data collection is from 30 interview participants Although the number of research