Vietnam Buy Now Pay Later (BNPL) Services Market Size Zooming 7.4X to Touch USD 12.6 Billion by 2029

Published | 26 September 2023

Vietnam buy now pay later (BNPL) services market is flourishing because of the thriving e-commerce industry in the county, convenience and flexibility offered by BNPL service providers, and growing population of millennials and Gen Z.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Vietnam buy now pay later (BNPL) services market size at USD 1,715.34 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Vietnam buy now pay later (BNPL) services market size to grow at a robust CAGR of 33% reaching a value of USD 12,627.32 million by 2029. Major growth drivers for the Vietnam buy now pay later (BNPL) services market include the growing middle-class population and increasing consumer demand for flexible payment options. With a low credit card penetration rate of only 5–6%, BNPL services fill the gap by offering alternative payment methods that cater to a wider population. Also, the booming e-commerce sector in Vietnam, which reached USD 14 billion in 2022, presents a prime opportunity for BNPL services. As mobile payments surge in popularity, with an 85% increase in volume and a 31% rise in value, BNPL's mobile-accessible and user-friendly payment process aligns perfectly with evolving consumer preferences. The strategic partnerships formed within the BNPL ecosystem, involving e-commerce platforms, financial institutions, and fintech firms, contribute to the widespread adoption of BNPL solutions. Notably, retailers benefit from higher purchase conversion rates and increased average order values, boosting their overall sales figures. However, economic instability or recessions and regulatory scrutiny are anticipated to restrain the overall market growth during the period in analysis.

Vietnam Buy Now Pay Later (BNPL) Services Market – Overview

The buy now pay later (BNPL) service has become increasingly familiar to Vietnamese consumers, especially among tech-savvy and financially proactive young shoppers. This payment solution allows buyers to make immediate purchases and subsequently spread the payments over several months, a flexibility that caters to both the product's cost and the buyer's financial capacity. Currently, in the global BNPL market, major players include Klarna, Afterpay, and Affirm, boasting millions of users and facilitating countless transactions each year. Klarna, a Swedish BNPL company, stands out as the industry leader, reporting a remarkable Gross Merchandise Value (GMV) of USD 53 billion, a figure roughly five times that of its closest competitor, the American firm Afterpay. It's essential to distinguish BNPL from traditional credit services. While both offer deferred payments, BNPL doesn't rely on creditworthiness and features a predetermined payment schedule. This makes BNPL particularly attractive to individuals without credit cards, as loan approvals are nearly instantaneous. Beyond credit, BNPL prioritizes shopping convenience. Unlike traditional installment payment processes that demand extensive documentation, BNPL providers offer a streamlined, tech-driven registration process, enhancing the advantages of digital technology for consumers. This underscores BNPL's appeal as a user-friendly and accessible financial solution.

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Impact of COVID-19 on Vietnam Buy Now Pay Later (BNPL) Services Market

COVID-19 pandemic had a mixed impact on the Vietnam buy now pay later (BNPL) services market. Temporary closures of brick-and-mortar stores, coupled with an extended period of consumers staying at home, triggered a significant shift. Despite a pre-existing upward trajectory, BNPL plans gained substantial momentum during the pandemic, especially as e-commerce surged. According to Worldpay, in 2020, BNPL accounted for 2.1% of global e-commerce transactions, equivalent to about USD 97 billion. Projections suggest this figure will double to 4.2% by 2024, ranking it fifth among preferred e-commerce payment methods. This growth reflects evolving consumer payment preferences, shaped by pandemic-induced retail dynamics. In Vietnam, BNPL was introduced in early 2019 but witnessed remarkable growth only after the pandemic's onset in late 2019. COVID-19 reshaped consumer behavior, favoring online shopping and positioning BNPL as an attractive financial solution for the population.

Vietnam Buy Now Pay Later (BNPL) Services Market – By Channel

By channel, the Vietnam buy now pay later (BNPL) services market is bifurcated into Online and Point of Sale (PoS) segments. The online channel segment holds a higher share in the Vietnam buy now pay later (BNPL) services market by channel during the forecast period. The rapid expansion of e-commerce in Vietnam has driven a significant shift in consumer behavior toward online shopping. As a result, more consumers are opting for buy now pay later (BNPL) services as a convenient and flexible payment option when making online purchases. The digital commerce segment in Vietnam is projected to see substantial growth, with an estimated 70.9 million users expected by 2025. This growing digital commerce landscape further fuels the demand for BNPL services, as consumers seek accessible and user-friendly payment solutions for their online transactions. Also, BNPL offers advantages such as affordability and the absence of interest charges, making it an attractive choice for budget-conscious consumers. The convenience of spreading payments over time without incurring extra costs is a significant driver behind the preference for BNPL within the online channel.

Competitive Landscape

Major players operating in the Vietnam buy now pay later (BNPL) services market include FeCredit, Momo, Home Credit Vietnam, Tima, LOTTE Finance Vietnam, and Kredivo. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Vietnam Buy Now Pay Later (BNPL) Services Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Vietnam Buy Now Pay Later (BNPL) Services Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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