Fintech firms pursue digital opportunities

Payoneer, a fintech company targeting small- and medium-sized businesses, is scaling up its operation in Vietnam this year to empower business growth within the digital economy. A key focus is on enhancing Vietnam’s digital financial infrastructure with Payoneer’s robust payment infrastructure, ensuring even stronger and more reliable cross-border payment solutions.

Alongside this, Payoneer is prioritising innovation through advanced technologies, particularly AI, integrated into its global financial stack to simplify cross-border payments.

Beyond just technology, Payoneer is aiming to cultivate robust partnerships within the digital landscape, extending beyond Vietnam to encompass our expansive regional and global network.

Viet Vu, country manager of Payoneer, said, “Ultimately, we do our best to provide a comprehensive and integrated solution that leverages our best global reach, competitive rates. Beyond infrastructure and technology, we are dedicated to delivering data-driven insights and market knowledge, effectively equipping Vietnamese businesses with the understanding, skills, and strategic advice they need to achieve sustainable success and growth in the global market.”

Similarly, Singapore-headquartered 1982 Ventures is doubling down on its commitment to Vietnam’s fintech ecosystem in 2025. The company has already got skin in the game with fintech companies like Fundiin and Infina, and is looking to build on that.

“Our focus is early-stage startups tackling core issues around financial access and inclusion. We’re particularly interested in digital payments, lending platforms, insurtech, and enterprise fintech and AI solutions in Vietnam,” said managing partner Herston Elton Powers. “We’re also actively building stronger partnerships with local players and regulators. This helps us find the most promising ventures and give them the resources they need to scale.”

The Vietnam Innovation and Tech Investment Report 2024 revealed that from 2013 to 2023, a substantial $1 billion has been invested in payment fintech startups in Vietnam, alongside $495 million directed towards financial services. Despite a funding slowdown in 2024, Vietnam expects to see continued robust investment across diverse fintech verticals – digital payments, lending platforms, insurtech, and wealthtech – signalling a wide range of opportunities in expanding financial services ecosystem.

Vietnamese fintech unicorn MoMo has taken longer yet still successfully capitalised on local market needs and addressed financial access gaps, especially in lending and payments. MoMo currently serves one-third of Vietnam’s population, with over 50,000 business partnerships and collaborations with more than 70 banks and financial institutions.

Vice chairman and CEO Nguyen Manh Tuong said, “Vietnamese banks have increasingly collaborated with fintechs like ours to provide integrated services. These partnerships have helped broaden the reach of fintech, making financial services more accessible to customers.”

As reported by CafeF, M-Service, the owner of MoMo, is negotiating with partners about an initial public offering abroad, which is expected to take place by the end of 2025 at the soonest. M-Service can raise 10 per cent of its valuation from the offering, which could be in Singapore or the United States.

Vu from Payoneer told VIR, “Looking at Vietnam’s fintech landscape, a vibrant and rapidly evolving picture emerges. The overarching trend is undeniably digital transformation, acting as a key enabler across all sectors. Within this digital acceleration, we see AI stands out as the most transformative technology for Vietnam’s financial services. AI is set to reshape the industry fundamentally through innovation and enhanced efficiency.”

Payoneer anticipates significant AI-driven advancements across fintech, particularly in areas like e-commerce optimisation, global marketing, and intelligent operations – capabilities that are becoming increasingly vital for Vietnamese businesses on the world stage.

“Secure, efficient, and accessible cross-border payment solutions are the bedrock upon which innovation is built. Therefore, fintech innovation will logically concentrate on AI-enhanced solutions that leverage and strengthen this essential payment infrastructure, ultimately driving broader participation and growth in Vietnam’s digital economy,” Vu said.

Powers of 1982 Ventures is also upbeat about the investment outlook for Vietnamese fintech in 2025.

“A supportive regulatory environment is creating a fertile ground for innovation,” Powers said. “The huge market potential of digital payments is strong, but personal finance solutions are about to take off. Vietnam’s economic growth is another key driver. Higher disposable incomes mean more demand for convenient financial tools. And finally, a large segment of the population is still unbanked or underbanked, which is a massive opening for fintech to make a real difference.”

According to Mordor Intelligence, Vietnam’s fintech market size is estimated at $20 billion in 2025 and is expected to reach $50 billion by 2030, at a compound annual growth rate of 20.2 per cent over the next five years.

An increasing number of foreign fintech companies are gravitating towards Vietnam, emphasising their enthusiasm through strategic alliances with local partners.

A Swiss-funded project, backed by a $5 million grant, aims to enhance Vietnam's fintech and digital banking sectors.

Vietnam-based fintech platform 1Long announced on February 26 that it has secured $500,000 in a pre-seed funding round with the capital coming from a consortium of investors, including Iterative, Monk’s Hill Ventures, R2VP, and Orionis Capital.

Collaboration between banks and fintech companies is crucial for leveraging financial technologies within the existing regulatory framework, ensuring the benefits of innovation are accessible to all citizens and advancing financial inclusion.