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

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

According to PayNXT360, BNPL payments in the country are expected to grow by 44.0% on an annual basis to reach US$1,913.1 million 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$1,329.0 million in 2023 to reach US$6,891.3 million 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 few 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 few 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 few 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.

PayNXT360’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.