Visa, the world’s leader in digital payments, and NextTech Group, Vietnam’s leading digital transformation group, have signed a three-year partnership to promote the adoption of digital payments among small business owners in Vietnam’s rapidly-growing social commerce sector.
|Visa inking the deal with NextTech Group to assist social commerce merchants in Vietnam |
The partnership will see Visa and NextTech Group collaborate on a range of initiatives to expand the network of sellers and buyers on social commerce platforms, including creating a convenient and easy-to-use means of making online payments through internet links.
E-commerce is currently the fastest growing sector of Vietnam’s digital economy, increasing by 35 per cent on-year. There are also over 46.5 million users of e-commerce platforms in the country, a 15.1 per cent increase over 2019. Responding to this demand, many of Vietnam’s local merchants have begun to expand their online offerings, with 71 per cent of SMEs saying that they have adopted new methods of providing products and services to customers since the onset of the pandemic (including e-commerce, curbside pickup, and home delivery).
Dang Tuyet Dung, Visa country manager for Vietnam and Laos said that, “By simplifying the payment process, our payment-by-link initiative with NextTech Group will provide consumers and merchants with a faster and more convenient way to pay and to be paid on social networks and other online platforms. This three-year partnership is testament to our long-term commitment to supporting e-commerce in Vietnam.”
With the rise of e-commerce, acceptance of digital payment methods is also increasing. According to the Vietnam eCommerce and Digital Economy Agency under the Ministry of Industry and Trade, the value of mobile and online transactions has increased by 238 per cent, which is further evidence of the burgeoning demand for new payment technologies. The move to online is driven not only by efficiency gains but also the ability to reach millions of new customers through an extensive network of buyers and sellers.
By collaborating with NextTech Group, Visa now has another partner with deep roots in e-commerce. NextTech’s platforms are host to over 120,000 merchants and 6 million users, as well as a wide e-commerce-enabling ecosystem. This includes NganLuong.vn, an online payment gateway that currently works with almost 40 financial and telecommunications institutions to handle over 100,000 daily transactions; BotBanHang.vn, a chat-bot and social commerce messaging management platform; and PushSale.vn, a mini-ERP platform specially designed for online retailers. Through this combination, merchants can easily provide buyers with a payment link via Facebook Messenger, SMS, or other OTT platforms on any online purchase inquiry. Buyers are then able to complete the payment using their credentials instantly.
|The tie-up aims to promote the adoption of digital payment in social commerce |
Nguyen Hoa Binh, chairman of NextTech Group said, “As an e-commerce pioneer and the leading online payment gateway in Vietnam, we are proud to work with Visa in bringing this new payment initiative to our customers. We expect this three-year partnership to deliver a host of electronic payment-related benefits to both buyers and sellers in e-commerce, one of the fastest expanding pillars of the digital economy.”
In addition to making sure the payment journey is as seamless and convenient as possible, Visa will also work to help manage and make business operations more efficient. This includes a range of support to promote changes to consumer habits and encourage the adoption of digital payments. Merchants will gain many benefits from the programme, including: free domain name and hosting services; a VND200,000($8.70) bonus for recording at least three Visa payment transactions in the first month; and training on how to use, comply with, and promote digital payments. Visa cardholders can earn 10 per cent cashback of up to VND30,000 ($1.30) per transaction.
As Vietnam’s embrace of e-commerce continues to grow, this partnership between Visa and NextTech Group equips merchants and consumers with a comprehensive set of intuitive tools for every step of the payment journey. By offering both the technology and the support to spur the widespread adoption of digital payments, this cooperation will allow Visa and NextTech Group to help users stay at the forefront of e-commerce expansion.