Vietnam’s fintech industry is still in its infancy with a little more than 30 players who are mostly tackling the payments market.
Two thirds of Vietnam’s fintech startups are providing consumers and merchants with, either, online payments services (1Pay, 123Pay, Payoo, VinaPay, OnePay, MoMo, etc.), or, brick-and-mortar digital payments solutions and POS/MOS (ibox, Moca, etc.).
The appetence for online payments and digital wallets in Vietnam is no surprise since Southeast Asia is expected to see its e-commerce market boom in the next decade.
Thankfully, not all of them are offering payment-related products and services. Vietnam has also a number of ventures that are tackling all kinds of sub-segments including crowdfunding, with players such FundStart, Comicola, Betado, and Firststep; lending with LoanVi; data management with CircleBi; personal finance, with the likes of BankGo, MoneyLover and Mobivi; bitcoin with Bitcoin Vietnam; and banking, with Timo, the country’s first digital bank.
While fintech is still in early-stage, some players, including local entrepreneurs, Internet and mobile providers, but also foreign investors, are starting to understand the untapped opportunity here.
Globally renowned startup funds, incubators and accelerators, have started eyeing the Vietnamese market as well. 500 Startups launched in March a US$10 million micro-fund for Vietnam as it intends to invest in 100 – 150 domestic startups.
Foreign ventures, too, have started expanding to Vietnam notably to tap into its remittance market. Vietnam, one of the busiest markets for receiving remittances in Asia, received US$13.2 billion in 2014, accounting for 6.4% of the country’s total GDP in that year.
WorldRemit, a UK-based startup, has just announced the expansion of its Vietnamese product, launching in May a new cash pick-up service enabling customers to collect cash instantly from 218 branches of DongA Bank.
A new player that has recently launched operations in Vietnam is Tapp Commerce, a Finish company that has developed and which operates a payment processing platform and a peer-to-peer commerce network that connect merchants with unbanked consumers in their neighborhoods.
Meanwhile, Vietnam’s fintech startup FTP Wallet has just launched a new digital wallet for online shoppers dubbed V-FPT that comes with an escrow feature.
FTP Wallet is a joint venture between the country’s leading information technology company FTP, and the group’s online shopping unit, Sendo.vn, one of Vietnam’s leading e-commerce platforms.