Several Starbucks stores in Vietnam are no longer accepting cash in Vietnam, Tuoi Tre has reported. These locations are instead relying on card payments and instant transfers for a ‘faster and more convenient experience’.
This is a big call given that a sizable amount of trade is still done in cash in Vietnam. However, Starbucks, where a cup of coffee can cost more than US$5 as opposed to a single dollar or two at Vietnamese coffee shops and cafes, is clearly positioned to target younger, middle-class consumers who make much more than the minimum wage, and are subsequently more than likely to have a bank account and bank card.
Also, cashless payments have become very popular in light of the NAPAS system which facilitates instant cash transfers from one bank account to another via QR code. These are even often used at local street markets for very small sums of money–sometimes less than a dollar.
In this light, in terms of reducing the security risks associated with handling cash, this move by these Starbucks stores makes sense. As far as speed and convenience go, however, it’s not clear that this has been achieved. Of note, QR code transfers can sometimes take some time with multiple steps involved–logging to a bank account, scanning the code, approving the purchase etcetera.
Still, it is worth noting that cashless systems in coffee shops have been tried in Vietnam and are an option for foreign firms looking to enter Vietnam’s consumer coffee market.
See also: How to Open a Cafe in Vietnam: Ultimate Guide 2024