An evaluation of customers’ insights towards baeminpay – a new e wallet for baemin application

Therefore, to compete with them, Baemin should apply a new brand of acashless e-wallet method to build more customer loyalty and brand optimization whichmeans this digital is only used f

BUSINESS RESEARCH 2 RESEARCH PROJECT REPORT

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Title of your paper An evaluation of customers’ insights

towards BaeminPay – a new e-walletfor Baemin application

Word count (excluding list of references, 4314 words

and appendix)

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BUSINESS RESEARCH 2 RESEARCH PROJECT REPORT

ASSIGNMENT 2 ASSESSMENT SHEET:

Diagnostic for the reflection

D Needs further attention (minor flaws or errors)

E Unsatisfactory (major flaws or errors)

QUALITIES

20 Coherence of presentation and quality of argument

20 Reflectiveness Total

60%

Introduction 6

Context of research 8

Literature review 8

Hypothesis 15

Research design 16

Findings 17

Discussions of findings 20

Recommendations and Conclusion 21

There is no doubt that food is a source of life for mankind every day From veryearly history, prehistoric humans were aware of the importance of food and theystarted to collect fruits and other kinds of food for survival in the research of Behre(2008) The history lasts for thousand years until now, therefore food has beensignificantly changed to adapt to the contemporary community as consequent

Vietnam - a country that has experienced a long history - is not an exception In Vietnam,there are considerable changes in food culture from the past to the present It is not justmentioned the changes in food ingredient varieties but the ways human beings have meals

To be more clarified, Chung (1998) pointed out that Vietnam is a combination of severaldifferent food cultures over the world, especially the Asian food culture, along with thecreatively invented mixtures of colors, flavors, textures, and temperatures Regarding theways people have meals, Dzung (2005) indicated that members of a family like to enjoydishes together in the past, especially dinner They put families above all the other things.That is the unique tradition of Vietnam that has been preserved until now Although it is avaluable custom, it has been changed gradually due to the growth of the economy andother objective factors The growing economy leads to much more workload need to becompleted, this requires people to work harder and longer working time Therefore, plenty

of people working in all fields nowadays are adopting the trend of having meals at theirworkplaces because they do not have more time to return home and then back to theirworkplaces With the progress of technology, they have more options in choosing kinds of

food and making mealtime as convenient as possible The foundation of the Internethas facilitated online food service platforms that allow users to browse various fooditems easily and compare products effectively (Chang, Chou, and Lo, 2014; Yeo, Goh,and Rezaei, 2017) The full significance of these platforms is the formation of onlinedelivery services that enable customers to order food through these platformsconveniently It cannot be failed to mention the well-known leading online food deliveryservice applications Now Delivery, GrabFood, Go-Food, and Baemin (Cheng, 2019).

Wei and Das (2018) stated that university students are gradually altering into a busy style- who frequently have a dense schedule all day long with numerous assignments,presentations, group activities, exams, and so on According to YouNet Media (2019), theyoung generation aging from 18 to 24 years old and living in Ho Chi Minh City accounts for38.1% of the people who love using Baemin applications With this figure, it is clear todetermine that university students are also contributing significantly to the development ofthe applications Online food delivery apps are created to satisfy the hustling persons withthe needs of ordering food online and getting food in a short time (Zulkarnain, 2015) Quy(2020) reported in the survey posted on VnExpress that Ho Chi Minh citizens use onlinefood delivery applications more frequently and spend more than people living in Ha Noi.Baemin is one of the most-used applications among the top leading online food deliveryapplications which have been used widely by university students in Ho Chi Minh City(Cheng, 2019; Quy, 2020)

life-Context of research

Baemin is a mobile application specializing in online food and beverage ordering anddelivery, it is currently administered by Woowa Brothers Vietnam Company Limited - asubsidy of Woowa Brothers Corporation whose headquarter is located in Korea (Baemin,n.d) Baemin has been developing intensively and maximizing the convenience forcustomers with a user-friendly interface and easy-to-use manipulation (Minh, 2020)

Similar to the other online food delivery applications like Now Delivery, GrabFood, or Food, Baemin also facilitates the applications for customers to browse food restaurants andselect products conveniently just by some clicks It is much more convenient with thepayment method when the Baemin application allows customers to pay through anelectronic wallet like Momo or bank accounts instead of cash (Baemin, n.d) However, theother online food delivery applications have also applied this method already in theapplications Therefore, to compete with them, Baemin should apply a new brand of acashless e-wallet method to build more customer loyalty and brand optimization whichmeans this digital is only used for food and beverages transactions online including orderpayment delivery payment on Baemin application named BaeminPay

Go-Literature review

Technology development is fundamental for the establishment of e-wallets nowadays With

as Momo, Zalopay, ViettelPay, and Moca (Phuong, Luan, Dong, and Khanh., 2020) There are many pieces of research about non-cash payment methods that have been done before.

The study of Yadav and Arora (2019) defined an e-wallet as a contemporary payment system that can perform transactions online as long as it is connected with a processor

or a smartphone linking with a bank account Money is kept intangibly in the account and is deduced when paying for a product online This payment method is currently applied in food orders and delivery In particular, online food delivery payment is vastly popular in India In the research of Ghosh and Tapash (2018), it is indicated that Swiggy

is one of the primary leading players in India that allows customers to order food online from the nearby restaurants and pay in both cash on delivery or online by using e-wallets Based on the research, we can infer that the online payment method had been studied by many researchers before it was introduced publicly, thereby having a huge impact on the growth of the online food delivery industry This is also supported by another study conducted in Malaysia by Bakar et al., (2020) in which the types of e-wallet are figured out and the success of a digital wallet application named Vestapay It initially gains success after a long-term of doing research and testing the effectiveness and customers’ behavior in practice The results of the test emphasize the importance

of the application’s interfaces and software administrator

Tran and Duong (2020) indicated that e-wallet has come into practice in Vietnam a longtime ago but it was not until 2014 that this type of payment became popular with thebreakthrough of the big names such as Momo E-wallet, VTC Pay, Samsung Pay, andZalo

Pay However, regarding the top leading digital wallets in the online food and beverageorders and delivery industry, it cannot help to mention the big four players at the present inVietnam including Momo E-Wallet, GrabPay by Moca, and Airpay (Van, 2019, 2020).

a) The case of Momo E-wallet:

From the official website of Momo, this e-wallet is said to be established in 2007 anddescribed as a payment platform linked directly with 25 commercial banks operating in thecountry, thereby users are allowed to pay daily for products and services in all fields whentheir accounts are connected to the banks they registered It can be used in any restaurant

or store that accepts paying through Momo It is popular in most stores in Ho Chi Minh Citywhen it is used to pay for online food and delivery every single hour Furthermore,according to Forbes Vietnam (2020), Momo is currently collaborating with more than 30thousand partners in all business fields from banking services, educational services toonline food and delivery services, and so on It also functions as an intermediary for thepayment of electricity, water, and Internet bills Also from its official website, Momo isconsidered as the first e-wallet unit that gains the highest degree of certification - PCI DSS

- Level 1 Furthermore, it applied the most advanced technologies such as two-factorverification, using fingerprints and face recognition to unlock the screen, or turning offautomatically when not used, and some more authentic outstanding functions With asmartphone and the application Momo installed in, users can easily pay via the Internetwithout physical money It is on the increase when it is reported on Forbes Vietnam (2020)that Momo accounts for 68% of the market share of online mobile transactions It is

recognized as the most used e-wallet among more than 30 top leading e-wallets inVietnam in early 2020 by Asia Plus In 2018, Momo is on the podium when it reached

10 million users and 100,000 payment points nationwide within 10 years since the firstpublication according to Momo's official website In the first half of 2020, this e-walletservice is honored as the best 10 brands with the best customer experience provisionannounced by KPMG and the third time of receiving the award named “Typical FintechVietnam 2020” (Momo, 2020) Momo takes full advantage of the internet andtechnology development to create the best experience and the most convenient forcustomers nationwide It can be recognized that Momo has a wide variety in all fields ofbusiness, which allows users to pay for products or services cashlessly From thefindings above, we can learn from the way Momo has applied to get customer trust andgreat experiences through using the mobile online application

b) The case of GrabPay by Moca:

Moca is another big brand in the e-wallet industry According to the introduction on itsofficial website, Moca is said to be built on mobile applications to facilitate users to payonline and directly at the points with bank cards such as ATM cards, Visa, Mastercard, orJCB cards safely and conveniently Moca is currently doing business with the top leadingbanks in Vietnam and numerous retailers to provide users with a modern, advanced, safe,and easy-to-use ecosystem for daily payments In the report of Hung (2018), he said thatGrab had introduced in September 2018 a new non-cash payment method in thecollaboration with Moca which was named GrabPay As a planned strategic partnership

between Grab and Moca, GrabPay is a new seamless and secured cashless payment method for users in Vietnam when using in-store services, Grab rides, fund transfers, and GrabFood deliveries (including online orders and delivery) (Grab, 2020) GrabPay

is described as a trustworthy payment system where users can make online

transactions safely and privately with personal information GrabPay is honored to be awarded “Best Fraud Prevention Innovation 2016” by Florin Awards Asia 2016 Thinh (2018) stated that users will be required to install the Moca e-wallet on the GrabPay application when they wish to make any transaction on it To utilize the application’s service’s functions effectively, customers will link their ATM cards which are issued by commercial banks that are Moca’s partners After the creation of the link, customers cantop up their e-wallet on the Grab application directly from their ATM, debit or credit accounts According to Lan (2019), it is only 6 months after GrabPay is introduced that Grab users spend more on GrabFood and GrabExpress than the other services of Grabwith the convenience and several promotions of using the cashless payment Hence,

we can conclude that Grab users are eager to use GrabPay in online food and delivery services and they have a high frequency of ordering food online and getting it delivered

c) The case of Airpay

Cited from the official website of Airpay, Airpay is under the control of Airpay Corporation and licensed by the State Bank of Vietnam It is known as a free e-wallet operated on mobile phones on which users enable to pay for products or services anywhere and anytime with a high level of modernness and information security It allows users to fulfill complete

wishes from the depository, cash withdrawals within the account, phone recharges,monetary services payments, monthly payments for electricity, water, internet, cable TV

in addition to different leisure providers with elevated information security Additionally,

it is a cashless payment method linked in with many e-commerce platforms such asShopee, Garena, Ocha, Foody, Now Delivery with a mission to bring a betterexperience for customers and level up the modern standard of living Users are initiallyrequired to link their bank accounts to their Airpay application so that they can maketransactions online on the application (Airpay, n.d.) In the collaboration with other e-commerce platforms, Airpay is used widely in daily payments for many types ofproducts with the campaign of launching numerous promotions, vouchers, and manyother benefits for users when they use Airpay as a payment method Therefore, it isconsidered one of the most favorable online mobile payment applications amongVietnamese people, especially the youth (Van, 2019) Van (2020) also reported thatafter acquiring food delivery from the Foody application, Airpay is on the way to thrive

on the market, especially the online food orders and delivery industry

d) The case of ZaloPay

Zalo was one of the OTT (over the top) products of VNG (Vina Game) which has beenwidely used by about 100 million in the past few years (Adtima, 2019) In 2019, anotherfinance and payment platform was established, ZaloPay brings users huge benefits sincethen Its official website states that ZaloPay provides users with many functions such astransferring money from one account to another, paying for electricity and water bills,

sending gifts to others Moreover, people can pay for any purchase in convenience storesincluding Circle K and 7Elven, even on shopping online platforms (Lazada and Tiki) andBaemin- an online food and delivery application Besides, it is extremely practical withuniversity students who frequently commute by bus because it allows them to scan the QRcode for bus fare In order to use this software, users must download and install on theirelectronic devices, both two applications, Zalo and ZaloPay It requires an available Zaloaccount beforehand to run this application In addition, ZaloPay also allows users to sign in

by using their phone number Nevertheless, the users are required to install the ZaloPayapplication separated from Zalo (ZaloPay, n.d) Having the same functions as other e-walletapplications, users are able to transfer money with any connected banks that require nofee, however, ZaloPay has a detailed policy and agreement between users and theapplication Based on this offer, Vietnamese users are now familiar with ZaloPay

From the collected findings above, we find that e-wallets are extremely useful forVietnamese people in particular.in the age of technology However, they have connectedwith many other platforms as a channel for users to pay money intangibly over the Internetand they do not focus only on online food and delivery services Besides, these e-walletsare separate applications, whenever users wish to pay for online orders, they must connectwith other separate applications (Nguyen, Nguyen and Tran, 2020) Take Momo as anexample, when users want to pay for any bills on Baemin, they must have Momoapplication installed and linked with the Baemin application on their devices which meansthey have to use two applications at the same time to pay for the order This may cause

confusion and inconvenience for users, especially low-tech ones Moreover, theirmarkets are massive within the country including rural areas, and their targetedcustomers are varying We realize that university students contribute hugely to thepopularity and development of e-wallets in the field of online food orders and delivery inVietnam, especially in Ho Chi Minh City Baemin is also connected with Momo toconduct payments for food and delivery online But the thing is Baemin is the newplayer in the food delivery industry, to make it unique and independent in the market,there should be a new e-wallet payment application that is used only for transactions ofBaemin application This new e-wallet will be operated under the control of Baemin’scompany- Woowa Brothers Vietnam- which is named BaeminPay.

This research is conducted to investigate university students’ behaviors in Ho ChiMinh City toward the establishment of the BaeminPay e-wallet served for onlinefood and delivery service payment on the Baemin application From there, the datacollected from the investigation will be analyzed to adjust and develop theBaeminPay e-wallet to run an effective marketing campaign in Ho Chi Minh City

Research design

BaeminPay is supposingly designed to help users pay for food orders online when using the Baemin application As our long-term developed brainchild, BaeminPay E-wallet is promising to offer you a wider range of appealing benefits that our other rival ever did Firstly, BaeminPay will simplify your banking paperwork procedures with just one time online registration on the Baemin application Secondly, BaeminPay is

developed to provide users a variety of choices of all kinds of cards (credit card, debit card, master card, VISA card, etc) Thirdly, BaeminPay intends to offer users a free initial account balance of 100,000 VND for the first 1 week Fourthly, BaeminPay will celebrate your birthday with a maximum 150,000 VND order Last but not least, a 20% extra will be added as a reward for each transaction of transferring from users’ banking account to BaeminPay account And other interesting promotions are being updated

For the purpose of understanding the demands and attitudes of customers, and releasingsuch a potential feature in the near future, a research was designed and conducted in thequantitative approach The primary information will be collected directly from theparticipants who are studying at universities in Ho Chi Minh City ranging from the juniors tothe seniors Systematic random sampling is adopted because the qualitative approach willtake the questionnaire method to collect data The questionnaire form is designed in theEnglish version and it is completely based on the use of Google Forms which allows users

to create questionnaires online over the Internet (Rashid, 2020) As anticipated, the formwill be posted on their schools’ Facebook pages such as confession page, community

page, or faculty page The first group of 150 students who responded to thequestionnaire from each school above will be collected and the others are not used.The questionnaire form is designed with multiple choice and open-ended questionsregarding their experience of using e-wallets and their behaviors toward BaeminPay.The participants’ personal information is kept privately in a high-level protected folder

on our computer with a complicated password within 6 months after the completion ofthe questionnaire The data collected will be analyzed by Google Form itself

Findings

After 5 days of collecting datas from the questionnaires with 150 participants, wecame up with these following findings:

The first 2 findings are collected from all the participants:

Finding 1* (Appendix 2, Figure 1): It is clear that Baemin is the food deliveryapplication which is mostly used with 92 participants making their choice However,there is no large distance in terms of the number of participants between Baeminand the other as GrabFood and Now Delivery get 80 and 74 votes respectively.Besides, GoFood has the lowest number of customers with 24 only

Finding 2 (Appendix 2, Figure 2): When it comes to method of payment, paying bycash is still the largest proportion with 72 percent of participants On the other hand,using Internet Banking gets the lowest percentage Besides the two aforementioned

The next 6 findings are from 37 participants who have been using e-wallets:

Finding 3* (Appendix 2, Figure 3): The largest proportion related to the type of wallet that is mostly used belongs to Momo with 33 users, while there is not muchdifference among 3 other methods when Airpay, ZaloPay and Moca respectivelycount for 20, 13 and 11 participants

e-Finding 4 (Appendix 2, Figure 4): 95 percent of the 37 participants say that they usuallyuse e-wallets to pay for food delivery orders whilst the others say they don’t

Finding 5 (Appendix 2, Figure 5): More than 90 percent of e-wallets users say thatthey were satisfied and very satisfied with the e-wallet payment method, in which 38percent of those said that they were very satisfied However, there are still a smallnumber of users who believe this method of payment brings them neithersatisfaction nor dissatisfaction No proportion of dissatisfaction was found

Finding 6* (Appendix 2, Figure 6): It is certain that plenty of frequent discounts andtime-saving are the two reasons that make more than 30 users want to use e-walletswhile being personal expenditure management assistant and receiving rewards are lessconsiderable Besides, privacy guarantee is the least consideration with 9 votes

Finding 7* (Appendix 2, Figure 7): Regarding dissatisfaction when using e-wallets, more than 20 users say that they are worried their personal information could be hacked or leaked out Being required to connect with the respected banks and waiting for OTP code to install

e-wallet applications are less considered On the other hand, only 5 users assume that high transaction fees is their biggest dissatisfaction.

Finding 8 (Appendix 2, Figure 8): More than 75 percent of e-wallet users do pay their orders on the Baemin application

The final 4 findings are cognition of users towards BaeminPay which is a newpayment service for Baemin application only

Finding 9 (Appendix 2, Figure 9): Regarding the reasons for not using e-wallets,more than 55 percent of participants preferred paying by cash whilst about 26percent of whom admitted that the complicated procedure for registering and usinge-wallets is one of the primary obstacles There is still a minority of the participants(5 percent) responded to get unaware of the existence of e-wallets

Finding 10 (Appendix 2, Figure 10): 85 percent of the participants agreed that itwould be convenient when the new e-wallet BaeminPay is integrated into theBaemin application as a whole

Finding 11 (Appendix 2, Figure 11): Approximately 90 percent of the participants expected

to have their current balance transferred into BaeminPay without any charges

Finding 12 (Appendix 2, Figure 12): More than 75 percent of the participants are willing to apply BaeminPay as an online payment for a Baemin application only

*These questions allow our participants to have many choices at one time

Discussions of findings

The results of the research will be mainly focused on: the ratio of using e-wallets,the online food and delivery applications and e-wallet applications they are currentlyusing, their experiences on the e-wallets that they are using or experienced before,their behaviors toward BaeminPay Therefore, the Baemin Marketing Team couldfigure out the current strengths, weaknesses, threats and opportunities in order totake further steps in adjustment and designing the most optimal functions for theupcoming BaeminPay application, which meet our customers’ demands

As anticipated, Baemin is now the dominated choice of university students in Ho ChiMinh City when it comes to food and delivery application In addition, an online paymentmethod which is e-wallet, which occupies a quarter of participants' choices, paves theway for us to be optimistic in its growing potential Of many existing e-wallets, Momocould be considered as the most powerful opponent in this market while ZaloPay is anewcomer which is on its way to obtain larger market share On the surface, mostparticipants show their preference to using e-wallets for their transaction and for fooddelivery in particular thanks to the frequent discounts that have been offered and time-saving advancement However, there are still drawbacks rising from existing e-wallets,for instance, privacy security receives the most concern from the participants.Furthermore, complex registration procedures including online confirmation and theirbank verification cause our participants some certain difficulties

The main reason for participants not using e-wallets to purchase is still because of theroutine to pay by cash, therefore there should be an impressive strategy to attract them

to use this online payment Luckily, in accordance with our offering functions: oneintegrated application only, subsidizing available account balance, the research teamachieves the agreement from the majority of participants Moreover, most participantsare likely to urge themselves to use our new service (BaeminPay), which is significantlyimportant for us to foster the process of carrying out this new project

Recommendations and Conclusion

a) Recommendations

Baemin application is one of the most widely used food delivery applications in which people can pay for their orders by any methods of payment, especially in this era people are used to using e-wallets besides traditionally paying by cash (Minh, 2020) In order to raise people's awareness not only about e-wallets’ convenience but also Baemin application itself in the market, integrating e-wallet in the application is the thing to do The findings have proved the security problem is the second critical issue people are most concerned about With the new function that most users have to give their personal information in a detailed way, users’ protection is our top priority Two-factor authentication (2FA) will be designed and tested thoroughly by the application Development department Biometric features of users would be applied beside sending OTP code through SMS so as to secure