Buy now, pay later offering unique, substantial value

The buy now, pay later (BNPL) market in Vietnam is facing tough competition in order to survive, with some companies already withdrawing. What sweet spots for growth continue to exist in this area?

The BNPL market continues to exhibit high potential, serving the right consumer needs. However, given the challenging economic conditions and the current funding constraints, the industry is undergoing a consolidation phase. Only a few players with strong value propositions or substantial financial support from parent companies are expected to survive.

Our primary focus is on reinforcing our product offerings to deliver real value to our customers and partners. Consequently, we have achieved remarkable success in terms of our products, consistently attaining exceptional customer experience metrics such as application completion time, approval rate, and a streamlined process that eliminates the need for app downloads.

BNPL has done much to encourage consumer spending. What are the ongoing barriers for BNPL in Vietnam, and which will be decisive in terms of the success of fintech companies?

To fully capitalise on the potential of BNPL, the primary barrier lies in securing sufficient investment capital. The e-wallet industry has attracted approximately $1 billion in investment, enabling it to achieve the mass scale it enjoys today. Given the unique and substantial value that BNPL offers to both consumers and retailers, we anticipate that the industry will draw in sizeable capital over the next 5-10 years.

While our vision has helped us position as a pioneer in the sector in Vietnam, our success and sustainability depends on our organisational culture and talented workforce. Therefore, during the first half of this year, Fundiin dedicated its efforts to building a strong corporate culture and attracting top talent, establishing a solid foundation for executing our expansion plans in the latter half of the year.

How will Fundiin remain on track, and how do your customers benefit from your services?

Fundiin stands out as a rare BNPL provider that offers interest-free products, seeking to provide the utmost benefits to consumers. This approach has garnered trust and support not only from consumers but also from our network of 500 retailer partners.

Our unwavering focus on product development, particularly in maximising user value and experience while mitigating risks, has allowed us to stay on track. Today, Fundiin takes pride in not only delivering the best user experience, but also empowering consumers to manage their budgets more efficiently and cost-effectively.

Consider the scenario where consumers require additional funds to purchase necessary items. Without Fundiin, they might need to withdraw money from their term deposit, resulting in lost interest income.

The trend of buy now, pay later solutions is projected to gain traction in Vietnam with many players unveiling new services to tap into this fast-growing segment.

The burgeoning e-commerce penetration amid the pandemic is paving the way for ‘buy now, pay later’ options to gain traction in Vietnam, particularly targeting those with insufficient credit history.

Buy now, pay later is often an interest-free way for consumers to defer payments on purchases. For retailers that subsidise the offering, it is a way to encourage conversion and higher average ticket sizes.