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The Sun
05-05-2025
- Business
- The Sun
Malaysia's BNPL: How tech preys on financial vulnerability
AS Malaysia's digital economy flourishes, a new financial trend is transforming the way consumers shop: Buy Now, Pay Later (BNPL). Once seen as a niche payment option, BNPL has rapidly gained traction, especially among young Malaysians, thanks to its integration with major e-commerce platforms and mobile apps. However, as usage surges, so do concerns over its long-term consequences, especially with the extent of its proliferation into businesses that reasonably should not offer it, such as a recent BNPL advertisement by a fried chicken fast food chain in Malaysia. Big BNPL bang In recent years, BNPL services such as Atome, Shopee PayLater, Grab PayLater and Pace have embedded themselves into Malaysia's retail and digital ecosystem. These services allow consumers to split payments into interest-free instalments, often without the need for traditional credit checks. This model has proven immensely popular among the country's youth. According to a 2023 report by Bank Negara Malaysia, the adoption of BNPL services is highest among those aged 18 to 30. The appeal lies in its simplicity and accessibility, especially for individuals who do not own credit cards or lack a formal credit history, but do own smartphones and internet access. A key driver of BNPL's growth in Malaysia is its seamless integration into e-commerce apps. Platforms such as Shopee and Lazada offer PayLater options directly at checkout, creating a frictionless experience that encourages impulse purchases. Meanwhile, Grab PayLater extends BNPL services beyond retail, letting users defer payments on ride-hailing, food delivery and in-store QR code purchases. This level of integration has been shown to boost conversion rates and increase average basket sizes for merchants, according to industry insights from BNPL providers. For brands, offering BNPL has become a competitive necessity, particularly in sectors such as fashion, electronics and beauty. This is a financial model that thrives on technology. Algorithms assess eligibility in seconds using alternative credit scoring methods, while mobile apps make instalment management intuitive and accessible. With push notifications, gamified reward systems and personalised offers, many platforms nudge users towards frequent use without fully highlighting the financial risks. Despite its perks, BNPL is increasingly being scrutinised for fostering unsustainable financial habits. As many BNPL providers do not report to central credit agencies, debts can accumulate unchecked, until missed payments trigger late fees or third-party collections. Predatory for vulnerable demographics The Federation of Malaysian Consumers Associations has also voiced concerns, with CEO Saravanan Thambirajah highlighting that the younger generation are particularly prone to impulse spending via BNPL due to its 'illusion of affordability'. The ease and accessibility of BNPL services disproportionately impact younger and lower-income Malaysians, who are often the least financially prepared to manage multiple instalment payments. Often at the lower end of the economic spectrum and lacking financial literacy, these consumers are frequently targeted through social media advertising and in-app promotions, framing BNPL as a lifestyle upgrade rather than a loan. According to data from Fintech News Malaysia, the majority of BNPL users report using the service for non-essential purchases, such as fashion items, gadgets and entertainment. While some platforms have introduced spending caps or payment reminders, consumer education remains limited. However, as more Malaysians embrace these services, the risks of debt accumulation, along with financial, technology and social media illiteracy must not be ignored. In a world of instant gratification with just a few swipes on our phones, the question remains: Are we buying convenience now and paying the price later? To quote Jay-Z: 'If you can not buy it twice, you can not afford it'. After all, just because you can buy now and pay later, does not mean you should.
The Sun
05-05-2025
- Business
- The Sun
Debt woes, online overspend
AS Malaysia's digital economy flourishes, a new financial trend is transforming the way consumers shop: Buy Now, Pay Later (BNPL). Once seen as a niche payment option, BNPL has rapidly gained traction, especially among young Malaysians, thanks to its integration with major e-commerce platforms and mobile apps. However, as usage surges, so do concerns over its long-term consequences, especially with the extent of its proliferation into businesses that reasonably should not offer it, such as a recent BNPL advertisement by a fried chicken fast food chain in Malaysia. Big BNPL bang In recent years, BNPL services such as Atome, Shopee PayLater, Grab PayLater and Pace have embedded themselves into Malaysia's retail and digital ecosystem. These services allow consumers to split payments into interest-free instalments, often without the need for traditional credit checks. This model has proven immensely popular among the country's youth. According to a 2023 report by Bank Negara Malaysia, the adoption of BNPL services is highest among those aged 18 to 30. The appeal lies in its simplicity and accessibility, especially for individuals who do not own credit cards or lack a formal credit history, but do own smartphones and internet access. A key driver of BNPL's growth in Malaysia is its seamless integration into e-commerce apps. Platforms such as Shopee and Lazada offer PayLater options directly at checkout, creating a frictionless experience that encourages impulse purchases. Meanwhile, Grab PayLater extends BNPL services beyond retail, letting users defer payments on ride-hailing, food delivery and in-store QR code purchases. This level of integration has been shown to boost conversion rates and increase average basket sizes for merchants, according to industry insights from BNPL providers. For brands, offering BNPL has become a competitive necessity, particularly in sectors such as fashion, electronics and beauty. This is a financial model that thrives on technology. Algorithms assess eligibility in seconds using alternative credit scoring methods, while mobile apps make instalment management intuitive and accessible. With push notifications, gamified reward systems and personalised offers, many platforms nudge users towards frequent use without fully highlighting the financial risks. Despite its perks, BNPL is increasingly being scrutinised for fostering unsustainable financial habits. As many BNPL providers do not report to central credit agencies, debts can accumulate unchecked, until missed payments trigger late fees or third-party collections. Predatory for vulnerable demographics The Federation of Malaysian Consumers Associations has also voiced concerns, with CEO Saravanan Thambirajah highlighting that the younger generation are particularly prone to impulse spending via BNPL due to its 'illusion of affordability'. The ease and accessibility of BNPL services disproportionately impact younger and lower-income Malaysians, who are often the least financially prepared to manage multiple instalment payments. Often at the lower end of the economic spectrum and lacking financial literacy, these consumers are frequently targeted through social media advertising and in-app promotions, framing BNPL as a lifestyle upgrade rather than a loan. According to data from Fintech News Malaysia, the majority of BNPL users report using the service for non-essential purchases, such as fashion items, gadgets and entertainment. While some platforms have introduced spending caps or payment reminders, consumer education remains limited. However, as more Malaysians embrace these services, the risks of debt accumulation, along with financial, technology and social media illiteracy must not be ignored. In a world of instant gratification with just a few swipes on our phones, the question remains: Are we buying convenience now and paying the price later? To quote Jay-Z: 'If you can not buy it twice, you can not afford it'. After all, just because you can buy now and pay later, does not mean you should.
The Guardian
26-03-2025
- Entertainment
- The Guardian
Pammy's Baywatch showstopper, exploding bikinis and Nasa's banned bodysuit – Splash! review
Four days after a nuclear bomb was first detonated over the Pacific islands of Bikini Atoll in July 1946, the French designer Louis Réard launched a provocative two-piece swimsuit at a poolside party in Paris. The two events might not seem to be connected. But Réard, who had been looking for a name for his design that would embody the tiniest garment imaginable, combined with the most explosive impact possible, hit on the almighty atomic blast as the ideal symbol. And so the modern bikini was born. The world's first bikini now hangs on a mannequin in the Design Museum in London, looking decidedly less earth-shattering than it did back then. Formed from baggy triangles of pink fabric, printed with a newspaper pattern and tied together with string, it looks a bit like someone has fashioned a quick cossie out of a few pages of the FT. 'It was really controversial at the time,' says fashion historian Amber Butchart, curator of Splash! A Century of Swimming and Style. 'Swimsuits were getting smaller and smaller in a kind of arms race, tied up with the excitement of the atomic age.' Two months earlier, another French fashion designer, Jacques Heim, had unveiled his own two-piece swimsuit at his beach shop in Cannes. He christened it the Atome, after the particle of matter, and hired skywriting aircraft to advertise 'the world's smallest bathing suit' over the Mediterranean. Not to be outdone, Réard hired his own skywriters to fly over the French Riviera, announcing his bikini to be 'smaller than the smallest bathing suit in the world'. It was the first time a swimming costume had plunged below the navel, to the horror of the Catholic church, and the glee of the male gaze. Réard was quick to capitalise on its minimalist credentials. Long before the arrival of the microkini, he published adverts declaring that a two-piece suit wasn't a genuine bikini 'unless it could be pulled through a wedding ring'. The competitive shrinkage of swimwear is one of many stories threaded throughout this illuminating exhibition, which charts our enduring relationship with water over the last 100 years, across fashion, architecture, sport and more. It touches on the British love of lidos, the lure of the seaside and the rise of wild swimming, as well as delving into more niche topics, from the controversies around hi-tech performance swimwear, to the curious Mermaidcore trend of the 2020s. The inexplicable popularity of the Dryrobe as an item of everyday clothing gets a look-in too. As unlikely as the towel-lined changing gown becoming an acceptable thing to wear to the shops, the atomic-bikini period is one of the stranger moments in the history of the swimwear-industrial complex. Displayed next to the first bikini, a 1950s photo shows people lounging beside a hotel pool in Las Vegas, as a mushroom cloud erupts on the horizon. Another shot depicts a poolside showgirl wearing a jaunty mushroom cloud headpiece. It turns out that the nearby Nevada Test Site made the area a hotspot for 'atomic tourism', with Vegas casinos offering atomic-themed cocktails and Miss Atomic Bomb pageants – where evermore skimpy bikinis were naturally all the rage. Keen not to be left out of the scanty swimwear craze, men soon got in on the action. One vitrine is dedicated to the furtive rise of gay men's swimming attire, at a time when homosexuality was still illegal. Raunchy 'physique' magazines of the 1950s and 60s, ostensibly marketed as male health and fitness publications, doubled up as softcore porn, featuring adverts for mail-order posing pouches and revealing trunks. 'You'll be number one,' promises an ad for a tiny pair of shorts with strategic windows cut out of the sides, published in a 1962 issue of The Young Physique, 'when the gang gets a glimpse of you thru porthole cutouts.' Who could resist the 'skintight muscle-conforming knit' of the latest 'Orlon-Wool-Rubber' blend? Available in alligator skin vinyl, too. Such technical material innovation is probed further in the evolution of high performance Olympic swimwear, most contentiously in the form of the 2008 LZR Racer swimsuit. Developed by Speedo, in collaboration with Nasa scientists, the futuristic garment looks like something from Batman's wardrobe. It was made from ultrasonically welded low-friction fabric to repel water, with compression panels for streamlining, as well as trapping air for increased buoyancy. The full body-length design instantly saw countless world records shattered: 94% of the gold medals at the 2008 Beijing Olympics were won by swimmers wearing the sleek suit. The international swimming federation, Fina, was furious, declaring that the level of innovation amounted to 'technical doping'. It was one step of ingenious design too far, and was swiftly banned. Perhaps in future contests, athletes should all be forced to compete in the standard issue grey woollen onesie that used to be rented out to day-tripping bathers by the municipal Margate Corporation in the 1920s. In the days before most people had their own swimming costume, its unisex one-size-fits-all design ensured it could fit swimmers of all body shapes. A century later, the exhibition shows how similar design principles are being embraced today, in the re-emergence of gender-neutral swimwear, created by companies such as the Portland, Oregon-based Beefcake. Its one-piece swimsuits, 'for any body, anywhere', take inspiration from the classic costumes of the 1920s, with sizes ranging from XS to 5XL, made in small batches by people in Portland making a living wage. Beefcake's Dreamboat design is shown alongside other efforts to make swimming more inclusive. There is Rebirth Garments' trans-friendly kit – which includes a compression lining in the bottom half to suit a trans woman, transfemme or non-binary person – and elegant unilateral mastectomy swimwear by Eno for single-breasted people. The Blob swimsuit, meanwhile, was designed by Hannah Whelan as a piece of 'artivism' to open up conversations around menstruation, period stigma and swimming, with a bright red patch emblazoned on its crotch. There are plenty more design stories to discover. Along with the actual red costume worn by Pamela Anderson in BayWatch, there's a celebration of the reinvention of Penzance's 1930s Jubilee seawater pool, recently upgraded with geothermal baths by Scott Whitby Studio, who were also responsible for the exhibition's punchy design, drenched with bold, kiss-me-quick colours. Marvel, too, at the evolution of goggles – including a 1940s guide to making your own wooden Hawaiian diving variety – and ponder the unlikely high-fashion adoption of pool slides worn with socks, thanks to a 1990s Tommy Hilfiger campaign. Diver Tom Daley also features with his Made With Love knitting kits, as does the recent revival of budgie-smuggler briefs, for which he is partly responsible. We've come a long way since 2009, when Alton Towers banned Speedos, in an apparent attempt 'to maintain the family-friendly atmosphere at the resort'. What would the theme park make of someone turning up in the 2-metre long silicone mermaid tail? One such scaly pink fin – made by special effects designer Silvo Dordevic, AKA Siki Red – hangs momentously from the ceiling, as an example of the subcultural phenomenon of Mermaiding. The TikTok trend, which sees people dressing up and swimming as merfolk – and greeting each other with a cheery 'shello!' – has been fuelled by the live action remake of The Little Mermaid, and the Netflix series MerPeople, both released in 2023. Mermaid academies can now be found from Bournemouth to Boracay island in the Philippines. It might look like child's play, but it's not for the fainthearted. 'It's one of the most physically uncomfortable situations you can ever be in,' according to Morgana Alba, founder of mermaid group, Circus Siren Pod. 'You can't breathe. You can't see. You can't really hear. You're probably cold. And the tail is dragging you down.' On a basic human level, 'our bodies don't want to be under those conditions'. So, perfect for the next extreme fitness trend! Like beach pyjamas and Dryrobes, watch out for these scaly prosthetics appearing soon on a high street near you. Splash! A Century of Swimming and Style is at the Design Museum, London, from 28 March to 17 August
Yahoo
06-03-2025
- Business
- Yahoo
Malaysia Buy Now Pay Later Business Report 2025: BNPL Payments to Grow by 15.1% to Reach $2.52 Billion this Year
This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Malaysia, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. Malaysian Buy Now Pay Later Market Dublin, March 06, 2025 (GLOBE NEWSWIRE) -- The "Malaysia Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update" report has been added to BNPL payment market in Malaysia is expected to grow by 15.1% on annual basis to reach US$2.52 billion in 2025. The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 24.0%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 10.9% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 2.19 billion to approximately USD 4.22 BNPL market is evolving rapidly, driven by the surge in e-commerce, diversification into non-traditional sectors, and increasing regulatory focus. Providers such as Atome and Grab PayLater are shaping the market by expanding their offerings and catering to consumer demand for flexible payment the next 2-4 years, BNPL is expected to become a standard payment method across industries, with innovation and compliance playing a critical role in sustaining growth. Providers must balance expansion with responsible lending practices as the market matures to build long-term consumer trust and stability. Competitive Landscape and Regulatory Developments in Malaysia's Buy Now, Pay Later (BNPL) MarketMalaysia's BNPL market is undergoing rapid growth, driven by rising e-commerce adoption and increasing demand for flexible payment options. Key players such as Atome, Grab PayLater, and Shopee PayLater have established strong footholds, contributing to a highly competitive market landscape. Recent strategic partnerships, such as that of Standard Chartered and Pine Labs, underscore the dynamic nature of the sector as providers aim to expand their reach and service the next 2-4 years, the Malaysian BNPL market will see further consolidation as established players strengthen their market positions through mergers and acquisitions. Simultaneously, regulatory changes, led by Bank Negara Malaysia under the forthcoming Consumer Credit Act, will likely foster transparency and consumer protection, shaping a more robust and sustainable BNPL ecosystem. Providers must adapt to these evolving dynamics to maintain competitiveness and meet regulatory standards, ensuring long-term growth and consumer State of the BNPL Market Malaysia's BNPL market is experiencing significant expansion, this surge reflects the increasing adoption of BNPL services among Malaysian consumers, particularly driven by the widespread growth of e-commerce platforms. BNPL has become a convenient alternative payment method, enabling consumers to manage purchases through flexible installment options. The rapid penetration of e-commerce in Malaysia has played a critical role in driving BNPL adoption, as consumers increasingly prefer seamless and flexible payment methods for online transactions. Additionally, the demand for alternative financial solutions that cater to budget-conscious individuals is fueling the popularity of BNPL, making it a vital component of Malaysia's evolving retail and payment landscape. Key Players and New Entrants Atome: A leading BNPL provider in Malaysia, Atome has established a strong presence across various retail sectors. Grab PayLater: Integrated into the Grab ecosystem, Grab PayLater offers BNPL services to its extensive user base, enhancing consumer payment flexibility. Shopee PayLater: Shopee's BNPL service has gained significant traction, contributing to the platform's competitive edge in e-commerce. Rely: As a BNPL provider, Rely has expanded its services in Malaysia, catering to the growing demand for installment payment options. Anticipated Competitive Dynamics The Malaysian BNPL market is expected to grow as established players seek to strengthen their positions through mergers and acquisitions. New entrants, both domestic and international, are likely to enter the market, intensifying competition. Providers may focus on diversifying their services and forming strategic partnerships to differentiate themselves in a crowded market. Increasing Adoption of BNPL Services Malaysia's BNPL market has grown rapidly, with over 5 million users in 2023, driven by expanding providers such as Atome, Grab PayLater, and Rely. The increasing use of BNPL services for small-ticket items such as electronics, fashion, and daily essentials reflects its versatility and appeal to younger demographics. This growth signifies consumer preference for flexible and convenient payment solutions across various spending categories. The expansion of Malaysia's e-commerce market, has created a strong demand for alternative payment methods such as BNPL. With limited credit card penetration and consumers looking to avoid interest-based loans, BNPL has emerged as an attractive option for Millennials and Gen Z. Its zero-interest installment plans align with the financial needs of these demographics, bridging the gap left by traditional credit products. Over the next 2-4 years, BNPL is expected to solidify its position as a mainstream payment method for both high-ticket and everyday purchases in Malaysia. Providers will likely introduce innovative features such as loyalty programs and digital wallet integrations to enhance customer retention and attract new users. As adoption intensifies, the BNPL market will play a pivotal role in shaping Malaysia's retail and financial landscape. Expansion into Non-Traditional Sectors BNPL services in Malaysia are expanding into non-traditional sectors such as healthcare, education, and travel, reflecting their growing versatility. Providers such as Grab PayLater have partnered with healthcare providers to offer installment options for medical treatments, addressing affordability concerns for high-cost services. Similarly, Atome has entered the travel segment, enabling consumers to pay for travel-related expenses in manageable installments, opening new opportunities for consumers and merchants. Consumer demand for flexible payment options in essential and high-value services is a primary driver of BNPL's growth beyond retail. Rising living costs and the shift toward aspirational spending have prompted consumers to seek installment-based solutions for medical treatments and tuition fees. For merchants in these sectors, BNPL offers a competitive edge by attracting cost-sensitive customers and providing accessible payment alternatives, boosting sales and customer satisfaction. Over the next 2-4 years, BNPL's expansion into non-traditional sectors is expected to grow, creating new revenue streams for providers and increasing consumer accessibility to essential services. However, higher-value transactions in sectors such as healthcare and education may necessitate enhanced credit assessments and risk management by BNPL providers. This diversification will likely strengthen BNPL's role in Malaysia's financial ecosystem, catering to consumer needs and merchant opportunities. Rising Regulatory Oversight Regulatory oversight of BNPL services in Malaysia is intensifying as authorities aim to address concerns about consumer debt and transparency. Bank Negara Malaysia (BNM) has emphasized the importance of responsible lending practices, encouraging providers to reassess their business models. This regulatory push reflects a proactive approach to mitigating financial risks associated with BNPL's rapid growth, particularly for vulnerable consumer groups. Concerns about over-indebtedness, especially among younger consumers, have been a significant driver of increased scrutiny. Many BNPL users may not fully understand the financial implications of deferred payments, raising the need for better transparency in terms and conditions. Additionally, Malaysia's regulatory approach has been influenced by global trends in markets such as Singapore and Australia, where stricter regulations have been introduced to enhance consumer protection within the BNPL ecosystem. Over the next 2-4 years, increased regulatory oversight is expected to foster greater transparency and build consumer trust in BNPL services. Providers will likely need to implement stricter credit assessments and clearer disclosures, which could enhance the sector's reputation. However, smaller BNPL providers may face operational challenges in meeting compliance requirements, potentially leading to market consolidation as larger players dominate the regulated environment. Key Attributes: Report Attribute Details No. of Pages 88 Forecast Period 2025 - 2030 Estimated Market Value (USD) in 2025 $2.52 Billion Forecasted Market Value (USD) by 2030 $4.22 Billion Compound Annual Growth Rate 10.9% Regions Covered Malaysia Companies Featured Grab PayLater Atome Klarna Razer Fintech Hoolah Lazada PayLater Shopee PayLater Helo FavePay BigPay For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Malaysian Buy Now Pay Later Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Vietnam Buy Now Pay Later Business Report 2025: BNPL Market to Grow by 36.5% this Year to Reach $2.61 Billion - Investment Opportunity Forecasts to 2030
Vietnamese Buy Now Pay Later Market Dublin, Feb. 17, 2025 (GLOBE NEWSWIRE) -- The "Vietnam Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update" report has been added to BNPL payment market in Vietnam is expected to grow by 36.5% on annual basis to reach US$2.61 billion in 2025. The BNPL market in the country experienced robust growth during 2021-2024, achieving a CAGR of 58.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 26.7% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 1.91 billion to approximately USD 8.51 report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Vietnam, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share rapid growth of Vietnam's BNPL market is being fueled by e-commerce expansion, low credit card penetration, and shifting consumer spending habits. Players like Atome and Kredivo are leveraging digital platforms to cater to younger, tech-savvy consumers, while partnerships with major retailers such as Pharmacity are embedding BNPL into everyday transactions. The integration of BNPL into super apps like MoMo and ZaloPay is further boosting accessibility and adoption across income groups. Additionally, the expansion of BNPL services into offline retail and non-retail sectors, such as education and travel, reflects the market's diversification to meet the financial needs of a broader consumer base. Collectively, these trends underscore BNPL's potential to become a standard payment option across Vietnam's as the BNPL ecosystem expands, regulatory scrutiny is intensifying. Recent measures to oversee foreign operators and a focus on consumer protection highlight the government's commitment to ensuring fair competition and transparency in lending practices. This evolving regulatory environment, while posing challenges for new entrants, is expected to create a more stable and trustworthy market in the long term. Over the next 2-4 years, the competitive landscape will likely see technological innovation, new partnerships, and potentially market consolidation as providers adapt to regulatory changes and seize emerging opportunities in untapped sectors. This dynamic combination of growth and regulation positions Vietnam's BNPL market as a critical financial ecosystem in the region. Competitive Landscape and Regulatory Developments in Vietnam's Buy Now, Pay Later (BNPL) MarketVietnam's BNPL market is rapidly evolving, driven by the growing demand for flexible payment solutions, a thriving e-commerce ecosystem, and a concerted effort by both domestic and international players to address the unique needs of local consumers. Key providers like Fundiin, MoMo, Atome, and Kredivo are leveraging strategic partnerships and innovative product offerings to expand their reach across urban and semi-urban areas. By targeting underserved and underbanked populations, these companies are bridging financial inclusion gaps, particularly through localized features such as shorter repayment cycles and installment plans tailored to first-time borrowers and informal sector workers. Recent collaborations, such as Fundiin's partnership with Pharmacity and MoMo's integration with Grab, highlight the competitive momentum and the sector's potential to become a mainstream financial ahead, Vietnam's BNPL market is expected to experience heightened competition and innovation, with providers broadening their services and geographic footprints. Investments in advanced technologies like AI and machine learning will likely enhance credit assessment and personalized offerings, while strategic partnerships with retailers, e-commerce platforms, and financial institutions will help players strengthen their market positions. Regulatory developments, such as the proposed sandbox by the State Bank of Vietnam, signal an emerging framework to ensure consumer protection and market stability. Over the next 2-4 years, the market is poised for growth, but players must navigate increasing competition, regulatory scrutiny, and the need for localization to maintain a sustainable State of the BNPL Market Vietnam's BNPL market consists of a mix of domestic providers like Fundiin and MoMo and international players such as Atome and Kredivo. These companies focus on tailoring BNPL solutions to underserved segments, tapping into both urban and semi-urban markets. BNPL services are becoming a mainstream payment option across retail categories, with increasing adoption by small and medium-sized enterprises (SMEs). This shift is driven by retailers seeking to enhance customer purchasing power and boost sales conversion rates. BNPL providers are targeting Vietnam's underbanked population, many of whom lack access to traditional credit products. By offering no-interest or low-interest installment plans, BNPL is bridging the credit gap for first-time borrowers and informal sector workers. To address Vietnam's unique market needs, BNPL providers are rolling out culturally relevant features, such as shorter repayment cycles and smaller loan amounts, appealing to consumers wary of debt accumulation. This localization enhances trust and adoption among diverse customer groups. Key Players and New Entrants Fundiin: A prominent local BNPL provider, Fundiin has established partnerships across various sectors, including a notable collaboration with Pharmacity, one of Vietnam's leading pharmacy chains with approximately 1,000 stores nationwide. This partnership enables Fundiin to reach a broader customer base and diversify its service offerings. MoMo: As a leading digital wallet in Vietnam, MoMo has expanded into BNPL services. In November 2023, MoMo partnered with Grab, allowing users to utilize BNPL options for Grab's services, thereby enhancing its market presence and user engagement. Atome and Kredivo: These regional BNPL providers are actively scaling their operations in Vietnam, aiming to capitalize on the country's growing demand for flexible payment solutions. Their entry intensifies competition and offers consumers a wider array of BNPL options. Rapid Expansion of BNPL Services Vietnam's BNPL market is expanding rapidly, with domestic and international players like Atome and Kredivo growing their operations. These companies are leveraging digital platforms to provide flexible payment solutions that cater to younger, tech-savvy consumers. E-commerce Boom: Platforms like TikTok Shop, Shopee, and Lazada are driving BNPL adoption by integrating deferred payment options into their checkout processes. Low Credit Access: Vietnam's low credit card penetration among younger demographics creates a gap that BNPL services are filling effectively. Shift in Consumer Spending Habits: Consumers, especially millennials and Gen Z, are increasingly seeking payment flexibility to manage cash flow amidst rising living costs. This trend is expected to intensify as more players enter the market and existing ones expand their services. However, rapid growth could attract regulatory scrutiny, prompting providers to adapt to changing compliance requirements. Strategic Partnerships Enhancing BNPL Reach BNPL providers are increasingly forming partnerships with major retailers to expand their reach. For instance, Fundiin has partnered with pharmacy chain Pharmacity, enabling consumers to use BNPL for everyday healthcare purchases. Retailer Integration: Retailers are adopting BNPL to attract more customers and drive higher conversions. Customer Engagement: Strategic partnerships allow BNPL providers to embed their services into consumers' daily spending habits, increasing adoption rates. These partnerships are likely to expand beyond urban areas into smaller cities and rural regions, making BNPL a standard payment option. The approach could also enable providers to penetrate niche sectors like healthcare and education. BNPL Integration with Super Apps Super apps like MoMo and ZaloPay are incorporating BNPL options into their ecosystems, offering users seamless payment flexibility alongside services such as e-wallets, utility bill payments, and peer-to-peer transfers. All-in-One Convenience: Consumers prefer platforms that consolidate multiple services, driving super apps to adopt BNPL as part of their offerings. Increased Smartphone Usage: High smartphone penetration among Vietnam's population supports the adoption of BNPL through these apps. BNPL integration into super apps will enhance accessibility, driving adoption across diverse income groups. Competitive dynamics within these platforms could lead to innovative BNPL promotions that reshape consumer behavior. Rising Use of BNPL in Offline Retail BNPL is expanding into offline retail sectors like electronics, fashion, and pharmacies. Providers like Fundiin are piloting in-store BNPL solutions, enabling consumers to enjoy flexible payments in physical stores. Omnichannel Shopping Experiences: Retailers aim to provide consistent payment options across both online and offline channels. Consumer Trust in Physical Stores: Many Vietnamese consumers prefer inspecting products in person before making significant purchases, making offline BNPL critical for big-ticket items. Offline BNPL adoption will continue to grow, with providers expanding to more retail categories. This will likely encourage higher consumer spending on big-ticket purchases, offering retailers a competitive advantage. Increasing Focus on Consumer Protection and Regulation Vietnamese authorities are increasing scrutiny of BNPL providers, particularly foreign operators. For example, platforms like Temu and Shein have been required to register with the government to continue operations. Consumer Protection: Authorities are focused on ensuring fair lending practices and preventing predatory behavior by BNPL providers. Leveling the Playing Field: Regulations aim to protect local businesses while ensuring fair competition between domestic and foreign players. Regulatory oversight will prompt providers to adopt more transparent practices and align with local compliance requirements. While this may slow down the entry of new players, it will ultimately foster a more stable and trustworthy market environment. Expansion into New Sectors BNPL services are diversifying into non-retail sectors such as education, healthcare, and travel. Providers like Fundiin have partnered with schools to offer installment-based tuition payments, while travel-focused BNPL solutions are gaining traction as the tourism industry recovers. Demand for Flexible Payments in Essential Services: Families seeking financial flexibility for education and healthcare are driving this diversification. Emerging Travel Opportunities: Travel agencies partnering with BNPL providers are catering to consumers looking for affordable ways to finance vacations. Non-retail BNPL adoption will grow steadily, with significant potential in education and travel. Providers focusing on sector-specific solutions will gain a competitive edge as these markets mature. Anticipated Competitive Dynamics Both existing players and new entrants are likely to broaden their service portfolios and geographic coverage, targeting underserved regions and sectors. Firms may invest in advanced technologies, such as artificial intelligence and machine learning, to enhance credit assessment processes and personalize customer experiences. We anticipate a rise in partnerships between BNPL providers and various industry stakeholders, including retailers, e-commerce platforms, and financial institutions, to leverage synergies and expand market share. As the market matures, consolidation through mergers and acquisitions may occur, driven by the need to achieve economies of scale and strengthen competitive positioning. Companies Featured Atome Fundiiin Wowmelo Traveloka Agoda Sacombank Lotte Finance Kredivo For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Vietnamese Buy Now Pay Later Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
