Buy now, pay later becoming popular in Vietnam
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Many buy now, pay later services have launched or expanded operations to meet the burgeoning demand.
“Cash is necessary for daily expenses, so I choose to pay later whenever possible,” Minh Tien, 33, of HCMC said.
He bought braces and a motorbike using pay later services.
The braces cost him VND35 million ($1,495.92) but he needed to pay only VND5 million upfront, and can pay the rest over three years. The bike cost him VND25 million, and he paid VND10 and the rest will be paid over six months.
Thu of HCMC bought a VND10-million TV two months ago for her daughter. “My salary goes really quickly since prices are rising, so I decided on a six-month installment scheme.”
Buy now, pay later provides customers and sellers “a convenient and budget-friendly payment option,” Nguyen Hoang Long, director of online commerce platform Sendo, said.
Demand for it is skyrocketing as it serves those who cannot access traditional loans, Moin Uddin, CEO of fintech platform SmartPay, said.
Vietnam presents a positive outlook for buy now, pay later services thanks to the popularity of cashless payment and low credit card ownership here, Krishnadas, senior vice president of business development at digital credit platform Kredivo, said.
Kredivo expects the market to reach $4.6 billion in value.
“Buy now, pay later will be a popular payment method in Vietnam over the next three years.”
Questions & Answers
Q.What factors are contributing to the positive outlook for buy now, pay later services in Vietnam?
What factors are contributing to the positive outlook for buy now, pay later services in Vietnam?
The positive outlook is attributed to the popularity of cashless payment methods and the low rate of credit card ownership in Vietnam. These conditions create a favourable environment for such payment solutions to thrive and expand.
Q.What is the projected value of the buy now, pay later market in Vietnam?
What is the projected value of the buy now, pay later market in Vietnam?
Kredivo, a digital credit platform, expects the buy now, pay later market in Vietnam to reach a value of $4.6 billion. They also anticipate it becoming a popular payment method within the next three years.
Q.Why are customers choosing buy now, pay later options instead of paying upfront?
Why are customers choosing buy now, pay later options instead of paying upfront?
Customers like Minh Tien use these services to manage daily expenses, while Thu chose an instalment scheme due to rising prices impacting her salary. It serves those who cannot access traditional loans.
Q.How do buy now, pay later services benefit both customers and sellers?
How do buy now, pay later services benefit both customers and sellers?
According to Nguyen Hoang Long of Sendo, these services provide customers and sellers with a convenient and budget-friendly payment option. They offer flexibility for consumers and can boost sales for businesses.