The Rise of Fintech in Vietnam: A Closer Look
In recent years, Asia has solidified its position as a powerhouse in the fintech sector, dominating global fintech revenues, as highlighted by data from Statista. Among the countries leading this charge is Vietnam, which is rapidly emerging as a key player in the fintech landscape.
Growth of the Fintech Sector in Vietnam
Vietnam’s fintech industry has experienced impressive growth, characterized by increasing customer adoption and substantial venture capital (VC) investments. The number of new fintech firms in the country surged by over 180% between 2018 and 2022. Particularly notable was 2021, when fintech funding reached an astonishing US$720 million, marking it as one of the most lucrative segments in Vietnam’s tech scene, accounting for over half of all VC funding.
The Cashless Revolution
The shift toward cashless payments has also taken significant strides. According to data from the State Bank of Vietnam (SBV), cashless payment volume shot up by 85% in 2022, with transaction value increasing by 31%. This trend indicates a growing cultural shift away from cash, particularly as transactions via chip cards nearly tripled, while cash withdrawals processed through the National Payment Corporation of Vietnam’s (NAPAS) system fell by 50%.
Spotlight on Leading Fintech Firms
In this burgeoning environment, several local companies are making headlines for their exceptional growth and ability to attract investment from reputable sources. Here’s a look at some of the top-funded fintech companies in Vietnam.
VNLife – US$550 Million
Founded in 2017 in Hanoi, VNLife serves as a holding company with its fintech arm, VNPay, leading the charge in digital payments. VNPay provides electronic payment services to over 40 banks and numerous businesses, offering products like VNPay-POS and VNPay-QR. The company’s impressive funding includes a remarkable US$300 million from SoftBank Vision Fund and GIC in 2019 and a subsequent US$250 million Series B in 2021, bringing its total to US$550 million.
M_Service – US$434 Million
M_Service operates MoMo, Vietnam’s leading mobile wallet, launched in 2007. The MoMo app provides users with seamless digital payments, transfers, and bill payments. By mid-2022, M_Service boasted over 31 million users and partnerships with 70 banks. With total funding of US$434 million, it maintains a valuation of US$2.27 billion, backed by notable investors such as Mizuho Bank and Warburg Pincus.
Sky Mavis – US$311 Million
Sky Mavis, founded in 2018, is best known for its blockchain game Axie Infinity, which allows players to battle and trade fantasy creatures represented as NFTs. The game has become a global sensation, with US$4 billion in all-time sales. The company secured a US$150 million Series C in April 2022, bringing its total funding to approximately US$311 million, with a valuation of US$3 billion.
Trusting Social – US$214 Million
Founded in 2013, Trusting Social uses AI to provide innovative credit risk solutions. Headquartered in Singapore, it operates across Vietnam, Indonesia, the Philippines, and India, catering to over 1 billion consumers. The company has raised about US$214 million, attracting major investors including Sequoia Capital and 500 Startups. Its latest US$105 million Series D round secured earlier this month demonstrates its strong growth trajectory.
Be Group – “Hundreds of Millions” US Dollars
Launched in 2018, Be Group is the innovative tech company behind a multi-service platform offering transportation, delivery, and financial services. The company has ventured into the banking sector with its digital banking product, Cake, in partnership with VPBank. Be Group claims to have secured “hundreds of millions” in funding, positioning itself as an aspiring super app in Vietnam’s competitive market.
Vietnam’s Bright Fintech Future
The rapid development of Vietnam’s fintech landscape, aided by increasing customer adoption and ongoing investment flows, positions the country as a key player in Asia’s fintech narrative. With local firms leading the charge, the future looks promising as these companies continue to innovate and evolve within this fast-paced environment.