Vietnam’s BNPL market set for changes amid intensifying competition

According to a report released by FiinGroup on June 24, Vietnam’s BNPL model has scaled quickly, from just four players in 2020 to 15 active platforms by 2024. Strongly integrated with digital retail and fintech ecosystems, BNPL is increasingly favoured by young, tech-savvy consumers seeking flexible payment options without credit cards.

Findings from Research and Markets also reveal that over the next 2-4 years, the competitive landscape of Vietnam’s BNPL market will likely see technological innovation, new partnerships, and potentially market consolidation as providers adapt to regulatory changes and seize emerging opportunities in untapped sectors.

Amid these changes, a key trend is the rise of PayLater, a broader credit model that includes BNPL, instalment plans, and consumer loans. While traditional BNPL focuses on small, short-term online purchases within e-commerce, PayLater supports larger, longer-term spending across diverse sectors such as offline retail, healthcare, education, and travel.

This model is more complex, with flexible interest terms and higher credit risk. As such, it requires robust capabilities in eKYC, automated approval, capital strength, and risk management. As a result, PayLater solutions are typically driven by digital banks or financial institutions rather than fintech startups.

A notable example is the launch of MWG PayLater on June 30, through a strategic partnership between Cake by VPBank and The Gioi Di Dong JSC (a member of Mobile World Investment Corporation - MWG). This marks the first branded pay-later service within the MWG ecosystem, designed to support higher-value, longer-term purchases across a broad range of retail sectors.

In MWG Paylater's model, Cake not only plays the role of a financial provider but also a technology platform provider: from user experience integration and data synchronisation to transaction security. Through this, Cake operates the entire process, from the eKYC system, AI credit assessment, and user authentication, to risk management and post-sales care.

This strategic collaboration demonstrates how the two companies are leveraging PayLater to deliver more robust, embedded financial services beyond basic BNPL models. The new offering builds on the successful launch of an instant loan product between the two sides in late 2024, which saw rapid user adoption. The strong uptake highlights the synergy between Cake’s digital banking capabilities and MWG’s extensive scale and customer base.

Alongside the PayLater approach, digital banks are also strengthening their conventional BNPL offerings through fintech partnerships. In February, CIMB Bank Vietnam partnered with Fundiin to introduce a BNPL service, leveraging data science to improve credit accessibility. The collaboration allows both sides to extend financial opportunities to underserved communities, empowering consumers through technology-driven solutions that make credit more accessible.

Likewise, consumer finance companies are also accelerating their push into Vietnam’s BNPL market. Lotte Finance has received approval from the State Bank of Vietnam to increase its charter capital to over VND4.9 trillion ($188.3 million), strengthening its ability to expand consumer finance services, including BNPL. So far, Lotte Finance’s BNPL service has been integrated into the ZaloPay app. Meanwhile, Home Credit Vietnam has partnered with major retailers and e-commerce platforms to scale up its Home PayLater platform.

Fintech startups like Fundiin, MoMo, Atome, and Kredivo have driven BNPL adoption in Vietnam thanks to their speed, agility, and mobile-first strategies. However, as the market matures, many now face growing challenges in mobilising significant capital, managing credit risk, and navigating tighter regulatory scrutiny.

This has accelerated a shift in the BNPL space, from fast-moving, fintech-led models to more established platforms backed by regulated financial institutions. Digital banks and consumer finance companies, equipped with stronger capital bases, eKYC capabilities, and bank-grade risk controls, are increasingly taking the lead. As a result, e-commerce and retail giants are turning to digital banking partners to embed financial services more deeply into their ecosystems, enhancing both convenience and long-term value for consumers.

Cake has the infrastructure to deliver fast, scalable, and flexible credit without relying on third-party lenders, a common constraint for many fintech startups. This positions Cake as the core engine behind MWG PayLater. By embedding Cake’s capabilities directly into the MWG ecosystem, the solution eliminates the need to redirect users to external platforms, enabling a more seamless customer experience.

Additionally, e-commerce platform Shopee has implemented SPayLater in collaboration with TPBank and VPBank. Shopee plans to scale up this service in the near future, citing its potential to help consumers manage spending more efficiently while enabling sellers to move higher-value goods and expand their customer base. This further reflects the growing role of financial institutions in powering embedded lending solutions.

According to Research and Markets, Vietnam’s BNPL market experienced robust growth during 2021-2024, achieving a compound annual growth rate of 58.3 per cent. The market is expected to grow by 36.5 per cent on an annual basis to reach $2.61 billion this year. As Vietnam’s BNPL market enters a new phase of growth and consolidation, the ongoing expansion of key players is set to reshape the future of the competitive landscape in the country.

Buy now, pay later (BNPL) payments in Vietnam are expected to grow by 41.8 per cent on an annual basis to reach $3.33 billion in 2024, according to an industry report released by ResearchAndMarkets on April 11.

VPBank's digital subsidiary Cake and The Gioi Di Dong JSC signed an agreement to provide online consumer loans on October 11.

Home PayLater from Home Credit formed a strategic partnership with Be Group on November 5 to expand the availability of Home PayLater - the "Buy Now, Pay Later" (BNPL) method that offers credit up to $988.