Vietnam Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

The BNPL payments in the country are expected to grow by 44.0% on an annual basis to reach US$1.91 billion in 2024.

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 CAGR of 29.2% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$1.32 billion in 2023 to reach US$6.89 billion by 2029.The buy now pay later market is thriving in Vietnam and the trend is projected to continue further in 2024. The rising consumption, coupled with low credit card penetration, is aiding the growth of the industry in Vietnam. To tap into the high-growth sector, not only domestic firms are competing but even regional players like Atome and Kredivo are seeking to scale their operations.

Key Developments in the BNPL Sector in Vietnam

In the past six months, several BNPL providers in Vietnam have introduced new products and services to address increasing consumer demand:

• Fundiin Partners with Pharmacity: In November 2023, Fundiin formed a strategic partnership with Pharmacity, one of Vietnam's leading pharmacy chains with around 1,000 stores nationwide. This alliance allows Fundiin to access a broader customer base, boosting its gross merchandise value and transaction volume. Fundiin’s BNPL services cover various sectors, including cinema, fashion, cosmetics, and travel in Vietnam.
• MoMo Collaborates with Grab: In November 2023, MoMo, a major digital wallet and BNPL provider, teamed up with Grab to allow MoMo users to make BNPL payments for Grab’s services. With over 31 million users, this collaboration is set to benefit Grab significantly in the Vietnamese market. Due to Grab's extensive range of services, MoMo is expected to see an increase in gross merchandise value and transaction volume.
• Atome and Kredivo Expand Operations: Regional BNPL players Atome and Kredivo are expanding their operations in Vietnam to capitalize on the high-growth BNPL market. Rising consumption and low credit card penetration drive the adoption of BNPL solutions in the country.

These new product launches and partnerships highlight the rapid growth and evolution of Vietnam’s BNPL sector. Providers are enhancing their offerings and distribution channels to meet the growing demand for flexible payment options, particularly in the booming e-commerce market.

Strategic Partnerships

Over the past six months, several significant partnerships have emerged in Vietnam's Buy Now, Pay Later (BNPL) sector, aimed at expanding distribution and driving growth:

• Fundiin Partners with Pharmacity: In November 2023, Fundiin, a leading BNPL provider in Vietnam, formed a strategic partnership with Pharmacity, one of the country's largest retail pharmacy chains with approximately 1,000 stores nationwide. This collaboration enables Fundiin to extend its BNPL services across Pharmacity’s extensive network, reaching a larger customer base and boosting its gross merchandise value and transaction volume. Fundiin offers BNPL options across various sectors, including cinema, fashion, cosmetics, and travel in Vietnam.
• MoMo Collaborates with Grab: In November 2023, MoMo, a prominent digital wallet and BNPL provider, partnered with Grab, the popular ride-hailing and delivery super app. This partnership allows MoMo users to use BNPL for payments across Grab's diverse services. With over 31 million users, this collaboration is expected to significantly benefit Grab in the Vietnamese market. Due to Grab's broad array of offerings, MoMo is also likely to experience an increase in gross merchandise value and transaction volume.

These strategic partnerships reflect the BNPL sector's emphasis on expanding distribution channels and customer reach to leverage Vietnam's rapidly growing e-commerce market and increasing demand for flexible payment solutions. The alliances between BNPL providers, retail chains, and super apps are anticipated to further drive the adoption of BNPL solutions in Vietnam.

Mergers and Acquisitions

In the past six months, no major mergers or acquisitions were reported in Vietnam's Buy Now, Pay Later (BNPL) sector. The key developments during this period include:

Partnerships and Collaborations

• Fundiin and Pharmacity: Fundiin formed a strategic partnership with Pharmacity, a leading retail pharmacy chain, to extend its BNPL services across Pharmacity's network of approximately 1,000 stores.
• MoMo and Grab: MoMo, a major digital wallet and BNPL provider, collaborated with Grab to enable MoMo users to make BNPL payments for Grab's services. This partnership is expected to benefit both companies significantly, leveraging Grab's extensive service range and MoMo's large user base of over 31 million.

Expansion of Regional Players

• Atome and Kredivo: Regional BNPL providers like Atome and Kredivo are focusing on expanding their operations in Vietnam to capitalize on the growing BNPL market, driven by increasing consumption and low credit card penetration.

The search results do not indicate any mergers or acquisitions involving Vietnamese BNPL firms during this period. The emphasis is on partnerships to broaden distribution channels and access new customer segments rather than pursuing growth through mergers and acquisitions.

Regulatory Changes

• The search results indicate that there have been no major regulatory or government policy changes specifically targeting Vietnam's Buy Now, Pay Later (BNPL) sector over the past 12 months. The emphasis has been on market growth, strategic partnerships, and expansion rather than new regulatory developments. However, several key points about the regulatory environment and government approach can be noted:
• Lack of Specific Regulations: Currently, there are no specific regulatory frameworks or government policies directly governing the BNPL sector in Vietnam. The market is primarily driven by private sector initiatives and partnerships, with minimal formal regulation.
• Consumer Protection Considerations: Although not explicitly addressed, the rapid growth of BNPL services implies a potential need for consumer protection measures to ensure responsible lending practices and mitigate risks associated with rising consumer debt. The government may eventually consider implementing regulations to address these concerns as the market develops.

In summary, the regulatory landscape for Vietnam's BNPL sector has remained largely unchanged, with no significant new policies introduced over the past 12 months. The focus has been on market expansion through strategic partnerships and private sector initiatives, while the government has adopted an implicit stance, allowing the market to evolve without direct intervention.

The BNPL payment industry in Vietnam has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Vietnam through 55 tables and 71 charts. Below is a summary of key market segments:

Vietnam BNPL Market Size and Spending Pattern, 2020-2029

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

Vietnam Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Vietnam Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Vietnam BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

Vietnam BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Vietnam BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Vietnam BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Vietnam Buy Now Pay Later Market Share Analysis by Key Players

Vietnam BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Vietnam Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

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

Vietnam Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

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

Vietnam Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

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

Vietnam Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

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

Vietnam Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• 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, 2020-2029

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

Vietnam Buy Now Pay Later in Others: 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

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in Vietnam.