Fintech Landscape Vietnam

Executive Summary

Vietnam’s fintech sector has experienced explosive growth, with transaction volumes increasing from $5 billion in 2018 to over $18 billion in 2024. The market is characterized by mobile-first adoption, QR code standardization (VietQR), and a rapidly expanding digital lending ecosystem.

Market Size and Growth

Transaction Volume

• 2024 total digital payment volume: $18-20 billion
• Annual growth rate: 30-40% (2020-2024)
• Mobile wallet transactions: 60% of volume
• Bank digital channels: 35% of volume
• Other fintech: 5% of volume

User Adoption

• E-wallet users: 75+ million registered accounts
• Active e-wallet users: 45-50 million (monthly)
• Mobile banking users: 40+ million
• Digital lending borrowers: 8-10 million

Payment Infrastructure

National Payment Switch (NAPAS)

• Real-time interbank transfers (24/7)
• VietQR standard implementation
• 60+ banks connected
• Transaction processing: <3 seconds

VietQR Standard

• Unified QR code format across banks and wallets
• Compatible with international QR standards (EMVCo)
• Static and dynamic QR support
• Zero-cost transfers between participating banks

Payment Methods Breakdown

E-wallets

1. MoMo (M-Service)

   • 30+ million users
   • 250,000+ merchant acceptance points
   • Services: payments, transfers, investments, insurance
   • Agent network: 100,000+ points

2. ZaloPay (Zalo Group)

   • 15+ million users
   • Integrated with Zalo messaging (80M users)
   • Social payments (red envelopes, group transfers)
   • Mini-app ecosystem

3. ViettelPay (Viettel Group)

   • 12+ million users
   • Strong rural penetration
   • Leverages Viettel’s telecom infrastructure
   • Micro-lending services

4. ShopeePay (Sea Group)

   • 10+ million users
   • E-commerce focused
   • Shopee ecosystem integration
   • Cross-border payment capabilities

5. VNPay

   • QR infrastructure provider
   • Banking app integrations
   • 40+ bank partnerships
   • Government payment services

Banking Apps

• Vietcombank Digital: 8+ million active users
• Techcombank Mobile: 6+ million active users
• Timo (VPBank): Digital-first banking
• Cake by VPBank: Neobank offering

Digital Banking

Traditional Bank Digitalization

• 95% of transactions now digital (major banks)
• Branch visits declined 60% (2019-2024)
• Video KYC implementation
• Biometric authentication adoption

Neobanks

• Timo: 500,000+ customers, savings-focused
• Cake by VPBank: Lifestyle banking, cashback rewards
• LiveBank by TPBank: Video teller integration
• Foreign neobanks: Limited presence due to licensing

Open Banking

• Pilot program launched 2023
• Account information sharing (with consent)
• Payment initiation services
• Standardized APIs by NAPAS

Digital Lending

Consumer Lending

• Market size: $3-4 billion (2024)
• Average loan size: $200-500
• Tenure: 3-12 months typical
• APR: 18-40% (regulated ceiling: 40%)

Key Players

• Home Credit Vietnam: POS lending leader
• FE Credit: Consumer finance (VPBank subsidiary)
• HD Saison: Electronics, vehicle financing
• Doctor Dong: Salary advance, short-term loans

Buy Now Pay Later (BNPL)

• Market size: $500M+ (2024)
• Providers: Kredivo (Indonesia), Home Credit, local players
• Typical: 3-6 installments, 0% merchant-funded
• E-commerce integration: Shopee, Lazada, Tiki

P2P Lending

• Regulatory framework pending
• Limited legal operations
• Informal P2P activity exists
• Crowdfunding: Under development

Insurtech

Digital Insurance Distribution

• Online premiums: 15% of total (growing from 5% in 2020)
• Embedded insurance: E-commerce, ride-hailing
• Micro-insurance: $1-5 policies (accident, health)

Major Players

• Bao Viet: Traditional leader, digital push
• Prudential Vietnam: Digital agent tools
• FWD: Digital-first life insurance
• Micro-insurance: Momo, other wallet integrations

Wealthtech

Digital Investment Platforms

• Stock trading apps: Growth of retail investors
• TCBS: Techcombank securities app
• SSI Mobile: Leading brokerage platform
• Funds: Online mutual fund platforms emerging

Crypto Assets

• Cryptocurrency trading: Technically restricted
• Underground activity persists
• Blockchain pilots: Government sanctioned
• NFT market: Limited, speculative

Regulatory Framework

State Bank of Vietnam (SBV)

• Primary regulator for payments and lending
• Licensing for payment services (e-wallets)
• Consumer credit regulations
• Anti-money laundering (AML) compliance

Key Regulations

• Circular 19/2016/TT-NHNN: Payment services
• Circular 39/2016/TT-NHNN: E-money issuance
• Circular 18/2019/TT-NHNN: Consumer credit
• Decree 163/2018/ND-CP: Lending activities

Licensing Requirements

• E-wallet license: Minimum capital 50 billion VND (~$2M)
• Payment intermediary: SBV approval required
• Foreign ownership: Caps in certain payment services

Consumer Protection

• Transaction dispute resolution (NAPAS)
• Data privacy: Personal Data Protection Decree 2023
• Cooling-off period: 3-7 days for credit products
• Transparent fee disclosure requirements

Cross-border Payments

Remittances

• Inbound: $18-19 billion annually (diaspora)
• Digital channels: 30% of remittances
• Major corridors: US, Australia, Japan, Korea
• Fintech providers: Remitly, Wise, local banks

Trade Finance

• Digital letters of credit adoption
• Blockchain pilots (Vietnam Trade Information Portal)
• SME financing gaps: $4-5 billion unmet demand

Challenges

Financial Inclusion

• 60% of adults have formal bank accounts
• Credit access: 25% of SMEs have bank loans
• Rural areas: Lower digital payment adoption

Infrastructure

• Interoperability: Improving but gaps remain
• Real-time settlement: Available for domestic
• Cross-border: Slow, expensive for non-USD

Trust and Literacy

• Digital fraud incidents: Rising concern
• Financial literacy: 45% of adults (low)
• Elderly population: Lower adoption rates

Future Outlook

2025-2027 Projections

• Digital payment volume: $35-40 billion
• E-wallet users: 60+ million active
• Digital lending: $8-10 billion
• Neobank customers: 2+ million

Emerging Trends

• AI for credit scoring
• Voice-based banking
• Super-app financial ecosystems
• Green fintech (carbon tracking, sustainable investing)

Sources

• State Bank of Vietnam Annual Reports
• NAPAS Statistics and Publications
• Ministry of Finance Insurance Reports
• Google, Temasek, Bain e-Conomy SEA
• McKinsey Global Payments Report
• World Bank Global Findex Database
• Vietnam Banking Association Publications