Decoding the winning strategy for household business in the cashless era
Decoding the winning strategy for household business in the cashless era
Operating a household business is challenging, especially in today’s rapidly evolving digital landscape. With the rise of various sales channels and an increasing range of payment options—including cards, e-wallets, QR codes, bank transfers, and cash—household businesses must adapt to stay competitive.
Non-cash payment: challenges and opportunities
Currently, shifting customer behaviors are driving household business owners to adapt quickly. Business owners are facing multiple challenges in managing various sales channels and multi-payment methods. Tasks such as processing orders and reconciling sales are added to the administrative burden. By streamlining these processes, owners can spend more time on running daily operations, driving sales, and improving their business rather than getting caught up in administrative tasks.
According to the State Bank of Vietnam, non-cash payment transactions in Q1 2024 surged by over 57.11% in volume and nearly 40% in value compared to the same period last year. A survey by Visa also revealed that 56% of Vietnamese users carry less cash than they did previously, showcasing the rapid adoption of new financial technologies among consumers. Notably, the younger generation is at the forefront of this trend, playing a crucial role in promoting the growth of non-cash payments, with an impressive 89% of survey respondents using digital payment methods in their daily lives. This indicates a significant shift in consumer payment behavior; shoppers now prioritize non-cash options due to their convenience. Consequently, shop owners are increasingly adopting and integrating non-cash payment methods to meet customer demands and improve the overall shopping experience.
In addition, traditional payments such as cash or bank transfers often lack transparency and control, hindering effective financial management. Along with that, businesses using traditional payment methods are also limited in their ability to access capital. Businesses that rely solely on cash transactions face challenges in proving their revenues to banks, making it difficult to secure the necessary capital for survival and growth.
Upgrading Payment Technology as a Key to Survival
On Nguyen Trai Street, a coffee shop owner shared the same worry. When he saw other stores adopting technology and expanding their business, he wanted to seek a solution that could help him to survive in the competitive market.
Mr. Chatuporn Boozaya-Angool, General Director of KASIKORNBANK Ho Chi Minh City Branch
Mr. Chatuporn Boozaya-Angool, General Director of KASIKORNBANK Ho Chi Minh City Branch elaborated: “With the current pace of cashless transformation, household businesses that fail to keep up will become outdated and struggle with proof of income for loans, making it more challenging to seek financing solutions from banks, whether for working capital or business expansion.”
He further explained: “There are now many tools supporting household business models. At KBank, we understand the unique challenges faced by household business owners and offer an end-to-end payment solution, covering everything from placing orders to financial management.”
“For example, our KBank máyPOS machines can integrate various payment methods such as cards, banking apps, and QR codes, eliminating the need for cash management. Additionally, the transaction history function provides a clear view of sales, even for single person operations. In fact, embracing technology fosters better engagement with consumers.”
KBank máyPOS machines can integrate various payment methods
For merchants who prefer not to use additional machines, KBank offers KBank Tính Tiền, an application that will transform your own Android device into a payment terminal with no hidden costs or subscription fees. Moreover, merchants can access KBank Merchant, a store management application that provides a wide range of features, including staff management, order processing, and inventory management, helping businesses to operate more efficiently without additional costs.
Additionally, K PLUS BIZ Vietnam application provides business owners with a simple way to manage their bank accounts and transactions. Equipped with features designed to handle financial reporting and monitoring, it ensures that business accounts remain well-organized and easily accessible, allowing entrepreneurs to focus on running their businesses.
Upgrading payment technology and business account management not only boosts stores’ transaction efficiency but also creates a more convenient for business owners and their customers. KBank's comprehensive solutions are designed to empower household businesses in Vietnam to thrive in the digital age.
About KBank Vietnam
KASIKORNBANK PCL. (KBank) was established in 1945, has been in business for over 79 years, with service network and strategic partners across Thailand and AEC+3.
KBank’s branch officially opened in August 2021 to provide full-services to local customers, including Thai enterprises and foreign enterprises investing in Vietnam. This includes key services for KBank’s corporate and SME business in Thailand, particularly corporate lending, international trade, cash management and corporate finance. KBank also provides services related to retail banking, including deposits and personal loans, drawing on KBank’s digital banking expertise in collaboration with local tech startups through KVision’s investment, to ensure these services meet the needs of local retail customers.
For more information, please contact:
K-Contact Center (028) 3821 8888.
