Buy now, pay later transactions to reach $3.33 billion in 2024

April 12, 2024 | 09:59
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Buy now, pay later (BNPL) payments in Vietnam are expected to grow by 41.8 per cent on an annual basis to reach $3.33 billion in 2024, according to an industry report released by ResearchAndMarkets on April 11.
BNPL payments to reach $3.33 billion in 2024

The report points out that the medium- to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a compound annual growth rate (CAGR) of 27.6 per cent during 2024-2029. The BNPL gross merchandise value in the country will increase from $2.34 billion in 2023 to reach $11.27 billion by 2029.

The BNPL market is thriving in Vietnam and the trend is projected to continue in 2024. Rising consumption is aiding the growth of the industry, and the rising middle-income class, coupled with lifestyle changes, is driving consumption among Vietnamese households. This trend is supporting the uptake of innovative payment solutions like BNPL in the domestic market.

BNPL growth is also supported by the low credit card penetration in the Vietnamese market. An increasing number of shoppers are utilising BNPL to fund their purchases, as it provides easier access to credit and higher purchasing power. The trend is expected to continue over the next three to four years, supporting broader industry growth.

To tap into the high-growth sector, domestic firms are competing with regional players like Atome and Kredivo to scale up their operations.

Domestic firms are also entering into strategic partnerships to widen the distribution of their BNPL products. The trend is projected to continue over the medium term, supporting the competitive landscape in the Vietnamese BNPL industry in 2024.

Fundiin, in November 2023, entered into a strategic partnership with Pharmacity in Vietnam. Fundiin's presence at Pharmacity, one of the leading retail pharmacy chains with approximately 1,000 stores across the country, will enable the BNPL firm to tap into more customers. This will also drive the firm's gross merchandise value and volume. In Vietnam, Fundiin is offering BNPL services across different industry verticals including cinema, fashion, cosmetics, and travel.

Meanwhile, MoMo, a leading digital wallet and BNPL provider in Vietnam, also entered into a strategic partnership with Grab last November. The partnership will enable MoMo users to make digital payments, including a BNPL option, for Grab services. With more than 31 million users, Grab stands to benefit significantly through this collaboration. MoMo, on the other hand, will also experience higher gross merchandise value and volume due, as Grab offers a wide range of services.

Growing the adoption of BNPL providers in Vietnam Growing the adoption of BNPL providers in Vietnam

The gaining popularity of buy now, pay later (BNPL) services has served as a spark for new trends in digital merchant adoption. Nguyen An Son, head of Project Development for the Centre for Informatics and Digital Technology at the Ministry of Industry and Trade’s Department of E-commerce and Digital Economy, told VIR’s Nguyen Thu about the prospects for BNPL in Vietnam.

Fundiin raises $5 million investment in Series A round Fundiin raises $5 million investment in Series A round

Buy now pay later (BNPL) fintech Fundiin has successfully raised $5 million in a Series A funding round co-led by Trihill Capital and ThinkZone Ventures. The new round of funding will help Fundiin to expand at a faster pace and expand to Indonesia in the upcoming series B round.

Barriers remain for BNPL to be top tool Barriers remain for BNPL to be top tool

The buy now, pay later fintech segment is still in a feeling-out stage in Vietnam as it attracts both foreign and local players that must take on tough competition in order to survive.

By Vy Bui

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