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Vietnam Buy Now Pay Later Business Report 2022-2028 – BNPL Financial Services Firms are Targeting the e-Commerce Industry to Drive Growth

Vietnam Buy Now Pay Later Business Report 2022-2028 – BNPL Financial Services Firms are Targeting the e-Commerce Industry to Drive Growth
PR Newswire
DUBLIN, Dec. 16, 2022

DUBLIN, Dec. 16, 2022 /PRNewswire/ — The “Vietnam Buy Now Pay Later Busines…

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Vietnam Buy Now Pay Later Business Report 2022-2028 - BNPL Financial Services Firms are Targeting the e-Commerce Industry to Drive Growth

PR Newswire

DUBLIN, Dec. 16, 2022

DUBLIN, Dec. 16, 2022 /PRNewswire/ -- The "Vietnam Buy Now Pay Later Business and Investment Opportunities - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 79.0% on an annual basis to reach US$2,092.2 million in 2022.

Medium to long term growth story of BNPL industry in Vietnam remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 31.9% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$1,168.9 million in 2021 to reach US$11,001.9 million by 2028.

The Fintech ecosystem has been growing rapidly in Vietnam. Over the last two years, the buy now pay later (BNPL) industry has experienced significant growth, a trend that the publisher expects to grow further in the Southeast Asian market. Notably, the growth in the Vietnamese BNPL market is directly related to the rise in online shopping. During the global pandemic, millions of new consumers turned to digital sales channels to complete their purchases in the country.

One of the major factor that is expected to contribute significantly to the growth of the BNPL industry is the young population of Vietnam. Gen Z and millennial consumers have driven the growth of the e-commerce industry, and with the rising smartphone and internet penetration rate, the publisher expects them to accelerate the growth of the BNPL segment over the next three to four years in Vietnam.

Over the years, banks in Vietnam have been struggling to digitalize their systems. However, traditional banking players are now expected to introduce BNPL service to catch up on the race to acquire young customers and potential credit users and leverage their large customer base through credit-card installments. The entry of traditional banking institutions into the BNPL sector will, therefore, further boost competition in the Vietnamese market over the next three to four years.

Financial services firms are targeting the e-commerce industry to drive the growth of their BNPL product in Vietnam

The growth of the BNPL market in Vietnam has come in parallel with the growth of the e-commerce industry in the country over the last two years. Driven by the global pandemic outbreak, consumers increasingly turned to online shopping channels and, at the same time, also adopted digital payment methods, such as BNPL.

It means that the e-commerce industry has been one of the major growth drivers for the BNPL market. Consequently, financial services firms are targeting the e-commerce industry to drive the growth of their BNPL product in Vietnam. 

In July 2022, Home Credit, the Netherlands-based financial services firm, announced that the firm had entered into a strategic partnership with Tiki, one of the leading e-commerce platforms in Vietnam, to launch Home PayLater, a BNPL service, in the country.

The pay later services launched by Home Credit will allow millions of Tiki customers to buy products of their choice. This partnership with Tiki will help Home Credit to accelerate its BNPL product adoption among Vietnamese, thereby boosting its transaction value and volume.

The publisher expects the financial services firm to further partner with more e-commerce marketplaces in the country as the online shopping trend continues to grow, especially among young generation shoppers, in Vietnam.

Banking institutions are launching credit card-linked BNPL services for young generation Vietnamese

In Vietnam, BNPL has grown into widespread popularity, especially among young generation consumers. While pure-play BNPL providers have been the initial beneficiary of the growing adoption of BNPL products among Vietnamese, banking institutions are also entering the BNPL landscape to benefit from the growing trend by leveraging their strong customer base.

As a result, banking institutions in Vietnam are launching credit card-linked BNPL services targeted toward young generation consumers. 

In April 2022, HSBC Bank (HSBC Vietnam) announced the launch of its LiveFree credit card, which is one of the first BNPL-focused credit cards in the market. Notably, the credit card is designed to target the need of young generation Vietnamese consumers. The bank is presenting the credit card to late millennials and early Gen Z consumers aged 23 to 30. Notably, consumers get up to 50% discount across categories, including shopping, beauty, traveling, and F&B, among others.

Over the next three to four years, the publisher expects more banking institutions to launch credit card-linked BNPL services for young generation shoppers, among whom the popularity of deferred payment options has been on a constant rise in Vietnam.

Residential property developers in Vietnam are launching a BNPL plan to boost sales in the country

Across industries, the adoption of the BNPL payment method has been on the rise. This trend is expected to accelerate further amid surging inflation and rising interest rates. In Vietnam, residential property developers are turning to BNPL schemes to entice investors and boost sales. 

In June 2022, Singapore-based CapitaLand Development rolled out a BNPL scheme for a residential project in Vietnam amid the slowdown in residential sales in the country. The scheme, exclusively available for buyers in Hong Kong, is offering a 30:70 payment scheme to buyers at its Zenity residential project in Ho Chi Minh City.

The launch of the BNPL scheme came at the time when property sales in the country slumped 46% in Q1 2022 compared to the same period last year. With real estate developers struggling to raise funds through bank loans and corporate bonds due to increased supervision, the publisher expects more firms to launch such innovative BNPL schemes to drive sales in the country.

Scope

Vietnam BNPL Market Size and Spending Pattern

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later Operational KPIs

  • Buy Now Pay Later Revenues, 2019 - 2028
  • Buy Now Pay Later Share by Revenue Segments
  • Buy Now Pay Later Merchant Commission, 2019 - 2028
  • Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
  • Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
  • Buy Now Pay Later Accounts, 2019 - 2028
  • Buy Now Pay Later Bad Debt, 2019 - 2028

Vietnam Buy Now Pay Later Market Share Analysis by Key Players (Akulaku, Atome, Pinelabs, Fundiin, Paylater)

Vietnam Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • Online Channel
  • POS Channel

Vietnam Buy Now Pay Later in Retail Shopping: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Home Improvement: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later in Other: Market Size and Forecast

  • Gross Merchandise Value Trend Analysis
  • Average Value Per Transaction Trend Analysis
  • Transaction Volume Trend Analysis

Vietnam Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

  • Buy Now Pay Later Sales Uplift by Product Category
  • Buy Now Pay Later Spend Share by Age Group
  • Buy Now Pay Later Gross Merchandise Share by Income
  • Buy Now Pay Later Gross Merchandise Value Share by Gender
  • Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Companies Mentioned

  • Atome
  • Finazar
  • Fundiin
  • Wowmelo
  • Traveloka
  • Agoda
  • LITNOW
  • Sacombank

For more information about this report visit https://www.researchandmarkets.com/r/v40kah

Media Contact:

Laura Wood, Senior Manager
press@researchandmarkets.com
 
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Pharma industry reputation remains steady at a ‘new normal’ after Covid, Harris Poll finds

The pharma industry is hanging on to reputation gains notched during the Covid-19 pandemic. Positive perception of the pharma industry is steady at 45%…

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March 13, 2024

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The pharma industry is hanging on to reputation gains notched during the Covid-19 pandemic. Positive perception of the pharma industry is steady at 45% of US respondents in 2023, according to the latest Harris Poll data. That’s exactly the same as the previous year.

Pharma’s highest point was in February 2021 — as Covid vaccines began to roll out — with a 62% positive US perception, and helping the industry land at an average 55% positive sentiment at the end of the year in Harris’ 2021 annual assessment of industries. The pharma industry’s reputation hit its most recent low at 32% in 2019, but it had hovered around 30% for more than a decade prior.

Rob Jekielek

“Pharma has sustained a lot of the gains, now basically one and half times higher than pre-Covid,” said Harris Poll managing director Rob Jekielek. “There is a question mark around how sustained it will be, but right now it feels like a new normal.”

The Harris survey spans 11 global markets and covers 13 industries. Pharma perception is even better abroad, with an average 58% of respondents notching favorable sentiments in 2023, just a slight slip from 60% in each of the two previous years.

Pharma’s solid global reputation puts it in the middle of the pack among international industries, ranking higher than government at 37% positive, insurance at 48%, financial services at 51% and health insurance at 52%. Pharma ranks just behind automotive (62%), manufacturing (63%) and consumer products (63%), although it lags behind leading industries like tech at 75% positive in the first spot, followed by grocery at 67%.

The bright spotlight on the pharma industry during Covid vaccine and drug development boosted its reputation, but Jekielek said there’s maybe an argument to be made that pharma is continuing to develop innovative drugs outside that spotlight.

“When you look at pharma reputation during Covid, you have clear sense of a very dynamic industry working very quickly and getting therapies and products to market. If you’re looking at things happening now, you could argue that pharma still probably doesn’t get enough credit for its advances, for example, in oncology treatments,” he said.

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Q4 Update: Delinquencies, Foreclosures and REO

Today, in the Calculated Risk Real Estate Newsletter: Q4 Update: Delinquencies, Foreclosures and REO
A brief excerpt: I’ve argued repeatedly that we would NOT see a surge in foreclosures that would significantly impact house prices (as happened followi…

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March 13, 2024

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Today, in the Calculated Risk Real Estate Newsletter: Q4 Update: Delinquencies, Foreclosures and REO

A brief excerpt:
I’ve argued repeatedly that we would NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble). The two key reasons are mortgage lending has been solid, and most homeowners have substantial equity in their homes..
...
And on mortgage rates, here is some data from the FHFA’s National Mortgage Database showing the distribution of interest rates on closed-end, fixed-rate 1-4 family mortgages outstanding at the end of each quarter since Q1 2013 through Q3 2023 (Q4 2023 data will be released in a two weeks).

This shows the surge in the percent of loans under 3%, and also under 4%, starting in early 2020 as mortgage rates declined sharply during the pandemic. Currently 22.6% of loans are under 3%, 59.4% are under 4%, and 78.7% are under 5%.

With substantial equity, and low mortgage rates (mostly at a fixed rates), few homeowners will have financial difficulties.
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/

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‘Bougie Broke’ – The Financial Reality Behind The Facade

‘Bougie Broke’ – The Financial Reality Behind The Facade

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

Social media users claiming…

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March 13, 2024

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'Bougie Broke' - The Financial Reality Behind The Facade

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

Social media users claiming to be Bougie Broke share pictures of their fancy cars, high-fashion clothing, and selfies in exotic locations and expensive restaurants. Yet they complain about living paycheck to paycheck and lacking the means to support their lifestyle.

Bougie broke is like “keeping up with the Joneses,” spending beyond one’s means to impress others.

Bougie Broke gives us a glimpse into the financial condition of a growing number of consumers. Since personal consumption represents about two-thirds of economic activity, it’s worth diving into the Bougie Broke fad to appreciate if a large subset of the population can continue to consume at current rates.

The Wealth Divide Disclaimer

Forecasting personal consumption is always tricky, but it has become even more challenging in the post-pandemic era. To appreciate why we share a joke told by Mike Green.

Bill Gates and I walk into the bar…

Bartender: “Wow… a couple of billionaires on average!”

Bill Gates, Jeff Bezos, Elon Musk, Mark Zuckerberg, and other billionaires make us all much richer, on average. Unfortunately, we can’t use the average to pay our bills.

According to Wikipedia, Bill Gates is one of 756 billionaires living in the United States. Many of these billionaires became much wealthier due to the pandemic as their investment fortunes proliferated.

To appreciate the wealth divide, consider the graph below courtesy of Statista. 1% of the U.S. population holds 30% of the wealth. The wealthiest 10% of households have two-thirds of the wealth. The bottom half of the population accounts for less than 3% of the wealth.

The uber-wealthy grossly distorts consumption and savings data. And, with the sharp increase in their wealth over the past few years, the consumption and savings data are more distorted.

Furthermore, and critical to appreciate, the spending by the wealthy doesn’t fluctuate with the economy. Therefore, the spending of the lower wealth classes drives marginal changes in consumption. As such, the condition of the not-so-wealthy is most important for forecasting changes in consumption.

Revenge Spending

Deciphering personal data has also become more difficult because our spending habits have changed due to the pandemic.

A great example is revenge spending. Per the New York Times:

Ola Majekodunmi, the founder of All Things Money, a finance site for young adults, explained revenge spending as expenditures meant to make up for “lost time” after an event like the pandemic.

So, between the growing wealth divide and irregular spending habits, let’s quantify personal savings, debt usage, and real wages to appreciate better if Bougie Broke is a mass movement or a silly meme.

The Means To Consume 

Savings, debt, and wages are the three primary sources that give consumers the ability to consume.

Savings

The graph below shows the rollercoaster on which personal savings have been since the pandemic. The savings rate is hovering at the lowest rate since those seen before the 2008 recession. The total amount of personal savings is back to 2017 levels. But, on an inflation-adjusted basis, it’s at 10-year lows. On average, most consumers are drawing down their savings or less. Given that wages are increasing and unemployment is historically low, they must be consuming more.

Now, strip out the savings of the uber-wealthy, and it’s probable that the amount of personal savings for much of the population is negligible. A survey by Payroll.org estimates that 78% of Americans live paycheck to paycheck.

More on Insufficient Savings

The Fed’s latest, albeit old, Report on the Economic Well-Being of U.S. Households from June 2023 claims that over a third of households do not have enough savings to cover an unexpected $400 expense. We venture to guess that number has grown since then. To wit, the number of households with essentially no savings rose 5% from their prior report a year earlier.  

Relatively small, unexpected expenses, such as a car repair or a modest medical bill, can be a hardship for many families. When faced with a hypothetical expense of $400, 63 percent of all adults in 2022 said they would have covered it exclusively using cash, savings, or a credit card paid off at the next statement (referred to, altogether, as “cash or its equivalent”). The remainder said they would have paid by borrowing or selling something or said they would not have been able to cover the expense.

Debt

After periods where consumers drained their existing savings and/or devoted less of their paychecks to savings, they either slowed their consumption patterns or borrowed to keep them up. Currently, it seems like many are choosing the latter option. Consumer borrowing is accelerating at a quicker pace than it was before the pandemic. 

The first graph below shows outstanding credit card debt fell during the pandemic as the economy cratered. However, after multiple stimulus checks and broad-based economic recovery, consumer confidence rose, and with it, credit card balances surged.

The current trend is steeper than the pre-pandemic trend. Some may be a catch-up, but the current rate is unsustainable. Consequently, borrowing will likely slow down to its pre-pandemic trend or even below it as consumers deal with higher credit card balances and 20+% interest rates on the debt.

The second graph shows that since 2022, credit card balances have grown faster than our incomes. Like the first graph, the credit usage versus income trend is unsustainable, especially with current interest rates.

With many consumers maxing out their credit cards, is it any wonder buy-now-pay-later loans (BNPL) are increasing rapidly?

Insider Intelligence believes that 79 million Americans, or a quarter of those over 18 years old, use BNPL. Lending Tree claims that “nearly 1 in 3 consumers (31%) say they’re at least considering using a buy now, pay later (BNPL) loan this month.”More telling, according to their survey, only 52% of those asked are confident they can pay off their BNPL loan without missing a payment!

Wage Growth

Wages have been growing above trend since the pandemic. Since 2022, the average annual growth in compensation has been 6.28%. Higher incomes support more consumption, but higher prices reduce the amount of goods or services one can buy. Over the same period, real compensation has grown by less than half a percent annually. The average real compensation growth was 2.30% during the three years before the pandemic.

In other words, compensation is just keeping up with inflation instead of outpacing it and providing consumers with the ability to consume, save, or pay down debt.

It’s All About Employment

The unemployment rate is 3.9%, up slightly from recent lows but still among the lowest rates in the last seventy-five years.

The uptick in credit card usage, decline in savings, and the savings rate argue that consumers are slowly running out of room to keep consuming at their current pace.

However, the most significant means by which we consume is income. If the unemployment rate stays low, consumption may moderate. But, if the recent uptick in unemployment continues, a recession is extremely likely, as we have seen every time it turned higher.

It’s not just those losing jobs that consume less. Of greater impact is a loss of confidence by those employed when they see friends or neighbors being laid off.   

Accordingly, the labor market is probably the most important leading indicator of consumption and of the ability of the Bougie Broke to continue to be Bougie instead of flat-out broke!

Summary

There are always consumers living above their means. This is often harmless until their means decline or disappear. The Bougie Broke meme and the ability social media gives consumers to flaunt their “wealth” is a new medium for an age-old message.

Diving into the data, it argues that consumption will likely slow in the coming months. Such would allow some consumers to save and whittle down their debt. That situation would be healthy and unlikely to cause a recession.

The potential for the unemployment rate to continue higher is of much greater concern. The combination of a higher unemployment rate and strapped consumers could accentuate a recession.

Tyler Durden Wed, 03/13/2024 - 09:25

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