South Korean multinational conglomerate Lotte Group on Friday launched the Lotte C&F buy now, pay later app, marking its official entry into Vietnam’s promising short-term financing market. 

Vietnamese consumers can use the Lotte C&F service while shopping online at Lotte Mart hypermarkets and supermarkets, which offer a wide range of products, from food and household appliances to electronics, to nearly 10,000 customers each month. 

Noritaka Inaishi, general director of Lotte C&F, noted that only about 10 percent of the Vietnamese population currently holds a credit card, a product that typically requires proof of high income. 

In contrast, the buy now, pay later service targets individuals with average incomes who exhibit a reliable consumer behavior and wish to purchase lower-value items like groceries, movie tickets, or household goods. 

Inaishi hopes this service will enable Vietnamese customers to shop with confidence.

Shin Ju Back, general director of Lotte Mart, mentioned that buy now, pay later services have been present in the Vietnamese market since 2019 and have grown significantly, at a rate of 32 percent per year. 

This service is anticipated to become a core payment method across all stores and e-commerce platforms in the near future.

As Vietnam shifts toward a cashless economy, buy now, pay later options are gaining popularity. 

Inaishi emphasized that both consumers and retailers benefit from this service as consumers enjoy shopping incentives and flexible payment options, while retailers can attract new customers. 

Major global brands like Amazon, Apple, and Shopee have also adopted this model to boost sales.

This payment method appeals particularly to younger consumers, offering advantages such as immediate access to desired items without needing funds upfront. 

The service allows for shopping and payment in various installments, shifting from postpaid services for larger items to covering smaller purchases like clothing, food, and entertainment.

As the e-commerce market continues to expand, the demand for buy now, pay later services in Vietnam has surged.

A report from Research and Markets estimates the buy now, pay later market in Vietnam reached US$1.32 billion by the end of 2023, with expectations of 44 percent growth in 2024, bringing the total to $1.9 billion.

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