With the launch of its revamped offering, Kredivo and VietCredit are pioneering by pro

viding a very unique product in the Buy Now Pay Later space across the country. It is in line with its ambition to bring innovative payment solutions for the benefit of the Vietnamese people.

In the last few years, Vietnam's e-commerce has experienced unprecedented growth and evolution, becoming one of the fastest-growing digital economies in Southeast Asia. It is expected to become one of the largest digital economies over the next few years.

According to the Vietnam E-commerce Association, e-commerce grew by more than 20 per cent in 2021 and is valued at $16 billion.

Market growth and potential rely on solid fundamentals, including a large and young population, high internet and mobile devices usage, and a high online purchase frequency.

To sustain and increase the industry’s development rate over the coming years, the Vietnam e-commerce ecosystem has to solve some structural bottlenecks, such as the low penetration of credit cards and the popularity of cash on delivery as a payment method – estimated to account for 80 per cent of the total transactions in 2021.

According to Kredivo, the Vietnam e-commerce industry has some similarities with Indonesia in respect of the tremendous potential it represents as well as some of the challenges both face.

In Indonesia, Kredivo has contributed to removing the obstacles to the country's online retail industry by introducing the most advanced digital credit payment method that enables Kredivo’s 5 million+ users in Indonesia to get instant access to flexible and affordable credit.

The merchant partners also benefit from instant point-of-sale financing, powered by its unique two-click checkout. That makes Kredivo a market leader with at least a 50 per cent Buy Now Pay later wallet share across most of the major Indonesian e-commerce merchants.

Valery Crottaz, CCO and head of International Expansion at FinAccel – the parent company of Kredivo – said, “As a superior transaction engine for e-commerce, Kredivo is a sales enabler for merchants. Those using Kredivo see a 30-50 per cent increase in the average order value and very high user stickiness.”

Kredivo's Buy Now Pay Later platform allows customers to make their purchases instantly and choose to pay in 30 days or 3, 6, or 12 months with the simplicity of two clicks at the checkout. Upon registration, customers get access to a revolving credit limit through a mobile application.

“More than 60 per cent of our users get their first credit through Kredivo. We believe that Kredivo's Buy Now Pay Later will enable financial inclusion in a responsible, convenient, safe, and affordable manner, further driving growth in Vietnam's e-commerce to the next level,” added Crottaz.

In partnership with VietCredit JSC, Kredivo in Vietnam initially started in August 2021 with a basic product enabling users to transact with a limit of up to VND5 million ($215).

Recently, Kredivo and VietCredit have continued to introduce a premium product, allowing users to get up to VND25 million ($1,075) payable over 12 months, which is a very unique value proposition in the current Buy Now Pay Later market.

This is yet another milestone for the company in reaching its goal to deliver innovative financial solutions and technologies while providing an amazing customer experience.