95 Percent of Consumers in Vietnam Aware of Buy Now Pay Later/Installment Plan though Comfort Remains Mixed

6:23:20 PM | 10/28/2022

Most Vietnamese consumers (95 percent) are aware of Buy Now Pay Later (BNPL)/installment plan as a payment option, though only a minority have used it in the last year, according to the Mastercard New Payments Index 2022. At the same time, an overwhelming majority said that backing from established financial institutions such as banks would increase their trust and comfort using installments.

The latest data on payment habits, attitudes and preferences was published in Mastercard’s second annual New Payments Index: a global consumer survey spanning 40 markets across five regions, including seven in APAC: Vietnam, Australia, China, India, Japan, New Zealand and Thailand.

The research finds that BNPL/installment plan has plenty of room for growth in Vietnam, with only 32 percent of those surveyed having used the digital payment method in the last year. More than half of the respondents (57 percent) stated they were more likely to use BNPL/installment plan for a large or emergency purchase, while 78 percent were interested in paying off bills using BNPL/installment plan.

Though only 62 percent were comfortable with the idea of using BNPL/installment plan today, the survey made clear that more robust backing for installment payments would encourage consumers to tap into BNPL/installment plan offerings: 77 percent agreed that they would feel safer using BNPL/installment plan backed by a major payment network than other providers, while 78 percent would be more interested in BNPL/installment plan offered by their current bank.

"Vietnamese consumers have been enthusiastic adopters of emerging forms of digital payments. The Mastercard survey shows that BNPL/installment plan has the potential to become a more widely adopted payment option —with the right conditions. BNPL has seen incredible growth recently but given how new this form of payment is to many, it stands to reason that they want to have some familiarity with the service providers that are offering it. If greater institutional support for BNPL/installment plan is provided, it will help to expand access to a payment option that can significantly increase financial inclusion and purchasing power for Vietnamese consumers,” said Winnie Wong, Country Manager, Vietnam, Cambodia, and Laos, Mastercard.

Among those in Vietnam who had used BNPL/installment plan services in the last year, the most common reasons for doing so were low or no interest repayments (57 percent), it helps them to save money for a purchase without needing to wait (55 percent), and it frees them up to make more purchases at specific times of the year (55 percent).

B.H (Vietnam Business Forum)