Some facts about Vietnam fintech & payment landscape
From the conference Vietnam Venture Summit, we wanna brief some facts about the landscape of Fintech & Payment in Vietnam market.
According to The State Bank of Vietnam, within the last three years, the number of fintech startups is four times of the previous number. Currently there are around 150 fintech companies while there were just 40 three years ago.
In 2017, the fintech transactions was 4.4B USD, and estimated to reach $7.8B at the end of 2020
And the two most dominant fields are mobile wallet and peer-2-peer lending with 28 and 70 companies, respectively.
Fintech Funding and Top players
The three leading mobile wallet startups with 90% payment transactions are Momo, Moca(Grab) and VnPay. According to some sources, Momo has raised more than $100M from Warburg Pincus. And VnPay also bagged $200M from SoftBank’s Vision Fund, $100M from Singapore Goverment Fund GIC. These two Vietnamese digital payment companies also rank first and third, respectively, in the top ten funded fintech firms in Southeast Asia.
In the last two years 2019-2020, Vietnam has got more than $450M and became the second largest market for fintech investment in Southeast Asia. Vietnam was the second-highest ASEAN recipient of financial technology (fintech) venture capital, according to a recent report by United Overseas Bank (UOB), PwC and the Singapore FinTech Association (SFA).
Vietnam’s mobile payment market is projected to reach $70.9 billion by 2025, a $16 billion rise from 2016. In addition, Vietnam is the fifth-preferred market for investment by non-ASEAN fintech firms, trailing Singapore, Malaysia, Thailand and Indonesia, with 13 percent of firms having announced plans for expansion into the country.
And here are some interesting facts shared by the top three market leaders
Mr Diep Nguyen Co-founder/ Vice President MoMo
- Next 2,3 years only 2-3 wallet will control the market, the small ones will have to find a specific niche to be survived
- Momo has reached 10M users, then double the customer base to 20M because of Covid’s effect.
Tran Thanh Nam – Co-founder/CEO Moca (backed by Grab)
- Biggest competitor is cash and habit
- Digital adopted rated is very low
- Acceleration is fast coz Covid
- 43% of Grab payment via Moca, 70% of Grabmart via Moca
- Changing from cash to digital wallet will be fast similar to some changes in the recent years
- Helmet wearing habit changing due to law
- Ride hailing and food delivery using thanks to the market ecudating efffort from the top players (Grab, Uber, Foody, Go-jek…)