Vietnam Buy Now Pay Later Business Report 2022-2028 - BNPL Financial Services Firms are Targeting the e-Commerce Industry to Drive Growth

DUBLIN, Dec. 16, 2022 /PRNewswire/ -- The "Vietnam Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 79.0% on an annual basis to reach US$2,092.2 million in 2022.

Medium to long term growth story of BNPL industry in Vietnam remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 31.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$1,168.9 million in 2021 to reach US$11,001.9 million by 2028.

The Fintech ecosystem has been growing rapidly in Vietnam. Over the last two years, the buy now pay later (BNPL) industry has experienced significant growth, a trend that the publisher expects to grow further in the Southeast Asian market. Notably, the growth in the Vietnamese BNPL market is directly related to the rise in online shopping. During the global pandemic, millions of new consumers turned to digital sales channels to complete their purchases in the country.

One of the major factor that is expected to contribute significantly to the growth of the BNPL industry is the young population of Vietnam. Gen Z and millennial consumers have driven the growth of the e-commerce industry, and with the rising smartphone and internet penetration rate, the publisher expects them to accelerate the growth of the BNPL segment over the next three to four years in Vietnam.

Over the years, banks in Vietnam have been struggling to digitalize their systems. However, traditional banking players are now expected to introduce BNPL service to catch up on the race to acquire young customers and potential credit users and leverage their large customer base through credit-card installments. The entry of traditional banking institutions into the BNPL sector will, therefore, further boost competition in the Vietnamese market over the next three to four years.

Financial services firms are targeting the e-commerce industry to drive the growth of their BNPL product in Vietnam

The growth of the BNPL market in Vietnam has come in parallel with the growth of the e-commerce industry in the country over the last two years. Driven by the global pandemic outbreak, consumers increasingly turned to online shopping channels and, at the same time, also adopted digital payment methods, such as BNPL.

It means that the e-commerce industry has been one of the major growth drivers for the BNPL market. Consequently, financial services firms are targeting the e-commerce industry to drive the growth of their BNPL product in Vietnam. 

In July 2022, Home Credit, the Netherlands-based financial services firm, announced that the firm had entered into a strategic partnership with Tiki, one of the leading e-commerce platforms in Vietnam, to launch Home PayLater, a BNPL service, in the country.

The pay later services launched by Home Credit will allow millions of Tiki customers to buy products of their choice. This partnership with Tiki will help Home Credit to accelerate its BNPL product adoption among Vietnamese, thereby boosting its transaction value and volume.

The publisher expects the financial services firm to further partner with more e-commerce marketplaces in the country as the online shopping trend continues to grow, especially among young generation shoppers, in Vietnam.

Banking institutions are launching credit card-linked BNPL services for young generation Vietnamese

In Vietnam, BNPL has grown into widespread popularity, especially among young generation consumers. While pure-play BNPL providers have been the initial beneficiary of the growing adoption of BNPL products among Vietnamese, banking institutions are also entering the BNPL landscape to benefit from the growing trend by leveraging their strong customer base.

As a result, banking institutions in Vietnam are launching credit card-linked BNPL services targeted toward young generation consumers. 

In April 2022, HSBC Bank (HSBC Vietnam) announced the launch of its LiveFree credit card, which is one of the first BNPL-focused credit cards in the market. Notably, the credit card is designed to target the need of young generation Vietnamese consumers. The bank is presenting the credit card to late millennials and early Gen Z consumers aged 23 to 30. Notably, consumers get up to 50% discount across categories, including shopping, beauty, traveling, and F&B, among others.

Over the next three to four years, the publisher expects more banking institutions to launch credit card-linked BNPL services for young generation shoppers, among whom the popularity of deferred payment options has been on a constant rise in Vietnam.

Residential property developers in Vietnam are launching a BNPL plan to boost sales in the country

Across industries, the adoption of the BNPL payment method has been on the rise. This trend is expected to accelerate further amid surging inflation and rising interest rates. In Vietnam, residential property developers are turning to BNPL schemes to entice investors and boost sales. 

In June 2022, Singapore-based CapitaLand Development rolled out a BNPL scheme for a residential project in Vietnam amid the slowdown in residential sales in the country. The scheme, exclusively available for buyers in Hong Kong, is offering a 30:70 payment scheme to buyers at its Zenity residential project in Ho Chi Minh City.

The launch of the BNPL scheme came at the time when property sales in the country slumped 46% in Q1 2022 compared to the same period last year. With real estate developers struggling to raise funds through bank loans and corporate bonds due to increased supervision, the publisher expects more firms to launch such innovative BNPL schemes to drive sales in the country.

Scope

Vietnam BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 2019 - 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 - 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028
• Buy Now Pay Later Bad Debt, 2019 - 2028

Vietnam Buy Now Pay Later Market Share Analysis by Key Players (Akulaku, Atome, Pinelabs, Fundiin, Paylater)

Vietnam Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

• Online Channel
• POS Channel

Vietnam Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Other: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Companies Mentioned

• Atome
• Finazar
• Fundiin
• Wowmelo
• Traveloka
• Agoda
• LITNOW
• Sacombank

For more information about this report visit https://www.researchandmarkets.com/r/v40kah

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