Buy now, pay later becoming popular in Vietnam
Many buy now, pay later services have launched or expanded operations to meet the burgeoning demand.
“Cash is necessary for daily expenses, so I choose to pay later whenever possible,” Minh Tien, 33, of HCMC said.
He bought braces and a motorbike using pay later services.
The braces cost him VND35 million ($1,495.92) but he needed to pay only VND5 million upfront, and can pay the rest over three years. The bike cost him VND25 million, and he paid VND10 and the rest will be paid over six months.
Thu of HCMC bought a VND10-million TV two months ago for her daughter. “My salary goes really quickly since prices are rising, so I decided on a six-month installment scheme.”
Buy now, pay later provides customers and sellers “a convenient and budget-friendly payment option,” Nguyen Hoang Long, director of online commerce platform Sendo, said.
Demand for it is skyrocketing as it serves those who cannot access traditional loans, Moin Uddin, CEO of fintech platform SmartPay, said.
Vietnam presents a positive outlook for buy now, pay later services thanks to the popularity of cashless payment and low credit card ownership here, Krishnadas, senior vice president of business development at digital credit platform Kredivo, said.
Kredivo expects the market to reach $4.6 billion in value.
“Buy now, pay later will be a popular payment method in Vietnam over the next three years.”