The report points out that the medium- to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a compound annual growth rate (CAGR) of 27.6 per cent during 2024-2029. The BNPL gross merchandise value in the country will increase from $2.34 billion in 2023 to reach $11.27 billion by 2029.

The BNPL market is thriving in Vietnam and the trend is projected to continue in 2024. Rising consumption is aiding the growth of the industry, and the rising middle-income class, coupled with lifestyle changes, is driving consumption among Vietnamese households. This trend is supporting the uptake of innovative payment solutions like BNPL in the domestic market.

BNPL growth is also supported by the low credit card penetration in the Vietnamese market. An increasing number of shoppers are utilising BNPL to fund their purchases, as it provides easier access to credit and higher purchasing power. The trend is expected to continue over the next three to four years, supporting broader industry growth.

To tap into the high-growth sector, domestic firms are competing with regional players like Atome and Kredivo to scale up their operations.

Domestic firms are also entering into strategic partnerships to widen the distribution of their BNPL products. The trend is projected to continue over the medium term, supporting the competitive landscape in the Vietnamese BNPL industry in 2024.

Fundiin, in November 2023, entered into a strategic partnership with Pharmacity in Vietnam. Fundiin's presence at Pharmacity, one of the leading retail pharmacy chains with approximately 1,000 stores across the country, will enable the BNPL firm to tap into more customers. This will also drive the firm's gross merchandise value and volume. In Vietnam, Fundiin is offering BNPL services across different industry verticals including cinema, fashion, cosmetics, and travel.

Meanwhile, MoMo, a leading digital wallet and BNPL provider in Vietnam, also entered into a strategic partnership with Grab last November. The partnership will enable MoMo users to make digital payments, including a BNPL option, for Grab services. With more than 31 million users, Grab stands to benefit significantly through this collaboration. MoMo, on the other hand, will also experience higher gross merchandise value and volume due, as Grab offers a wide range of services.