A New and Open Journey

“Zalopay is pioneering the way millions of Vietnamese people transact, save, and grow their personal finances in today’s dynamic digital economy ,” shared Ms. Le Lan Chi, General Director of Zalopay.

The Vietnamese fintech market is currently one of the fastest-growing in the ASEAN region, driven by a high adoption rate of digital payments, the rapid proliferation of smartphones, and strong government support. The shift towards cashless transactions accelerated significantly during the pandemic.

According to Fiingroup, by the end of 2023, Vietnam had over 36 million active e-wallets, and this number is projected to reach 50 million users in 2024. Based on internal estimates, the size of the cashless payment market between consumers and businesses, both online and offline, could reach approximately US$165 billion in 2024, encompassing retail, food and beverage , e-commerce, transportation, food delivery, and online travel sectors.

Among digital payment methods, VietQR – a product developed by NAPAS (Vietnam National Payment Corporation) – has recorded impressive growth thanks to consumer habits prioritizing mobile devices and the convenience of the payment experience.

Consumer lending services are also emerging as a new trend, as users seek more flexible forms of financing. It is estimated that outstanding consumer loans will reach $186 billion in 2024, and could grow at a CAGR of 11% over the next five years.

According to data from the State Bank of Vietnam's Payment Department, 22% of the Vietnamese population still lacks a bank account, creating significant opportunities for fintech companies to promote financial inclusion. Capitalizing on this trend, Zalopay, in collaboration with CIMB Vietnam and SHB Finance, has launched a flexible installment payment and cash loan service within its app, with credit limits up to 30 million VND. Despite strong growth, the Vietnamese fintech market still faces many challenges, particularly in legal regulations and intense competition. Complex licensing procedures and large capital requirements make market entry difficult for new businesses. Meanwhile, foreign investors also face barriers stemming from commitments in international trade agreements. Competition in the industry is increasingly fierce, especially in digital payments, consumer lending, and blockchain. Consumers are increasingly diversifying their payment methods, using multiple e-wallets and digital banks simultaneously, making user retention a major challenge for service providers. Cybersecurity remains a pressing issue, as risks of fraud and personal data breaches persist despite government regulatory efforts. These challenges highlight the need for fintech companies to strike a balance between technological innovation and legal compliance, while building lasting trust with users for long-term growth in an increasingly competitive environment.

2024: A New and Open Journey

Against this backdrop, Zalopay has quickly established itself as the leading online payment platform in Vietnam. After 6 years since its launch, Zalopay currently serves 16 million users with a diverse catalog of over 100 products and services. By the end of 2024, Zalopay had connected with over 52,000 partners and 81,000 payment points nationwide, achieving a 39% growth in transaction volume and a 149% growth in revenue from financial services compared to the previous year. In 2023, ZION (the parent company of Zalopay) became the only Vietnamese enterprise to be included in the Top 200 Global Fintech Companies list by the prestigious American television channel CNBC, demonstrating its pioneering position and growth potential in the promising digital payment market in Vietnam.

In 2024, Zalopay stepped out of its "comfort zone," constantly experimenting with new limits and capabilities. No longer confined to the definition of a traditional e-wallet, Zalopay transformed into an open platform, continuously improving its ecosystem to provide diverse and practical personal financial products for Vietnamese users.

"Banks are partners, not competitors."

Since July 2024, Zalopay has aimed to become an open and comprehensive payment platform, identifying banks, financial institutions, and payment service providers in the market as strategic partners rather than competitors. With a large user base and a rapidly growing transaction volume each year, this collaboration not only enhances user experience but also expands the digital payment infrastructure. The Zalopay Multi-Purpose QR code is a prime example, allowing users to flexibly use various banking or e-wallet applications for payments, without being tied to a single platform. Zalopay has established close partnerships with 13 banks, achieving 57% market coverage, contributing to a smoother payment experience for users.

Research from Decision Lab (2024) indicates that Vietnamese users prefer banking apps but are also willing to experiment with new payment methods. Zalopay has successfully capitalized on this by optimizing its platform and offering flexible funding options such as Zalopay wallet balance, bank app transfers, Apple Pay, Google Pay, or international cards. This flexibility not only meets diverse needs but also leverages the strengths and reputation of banks to promote cashless payments.

Collaborating with banks also helps Zalopay leverage technological and financial resources, while expanding its customer base of young, tech-savvy individuals—Zalopay's strength—supporting the national digital transformation goals by 2025 and the vision for sustainable development by 2045 (Decision 749/QD-TTg, 2020). Within this ecosystem, cash is identified as a "common competitor" for Zalopay, banks, and payment intermediaries.

Zalopay is committed to further strengthening its partnerships with banks, creating added value for users, businesses, and the entire digital ecosystem in Vietnam. By collaborating rather than competing, Zalopay not only affirms its position as a pioneering payment platform but also contributes to the Government's goal of financial inclusion, gradually reducing the influence of cash and promoting the development of the electronic payment market.

ZaloPay Multi-Function QR Code - A Strategic Leap Forward

In July 2023, Zalopay became one of the pioneers to launch the versatile Zalopay QR code payment solution based on the VietQR standard. This groundbreaking product accepts payments from all banking and e-wallet applications, marking a shift in Zalopay's business thinking and sustainable development orientation for 2024. The versatile Zalopay QR code not only provides a seamless and efficient customer experience – minimizing errors and shortening transaction times – but also helps business partners consolidate QR code management and optimize costs.

The upgraded version of Zalopay Multi-Purpose QR Code provides comprehensive customer care tools for retailers, including tiered membership programs, automated point accumulation systems, and personalized offer distribution. Simultaneously, businesses can manage and analyze data to design after-sales programs, retain customers, and increase sales through automated messaging. Customers, upon scanning the Zalopay Multi-Purpose QR Code via any banking app or Zalopay, automatically accumulate membership points and receive brand benefits, saving time and eliminating complex procedures such as providing personal information, membership codes, or phone numbers. The Pizza Company is the first partner to implement this solution with its “The Pizza Company Membership” program.

In 2024, Zalopay continued to expand its Multi-Purpose QR code into e-commerce and international platforms by partnering with Nimo TV (April 2024) and Lazada Vietnam (June); collaborating with Visa to support payments for small and medium-sized enterprises (SMEs), and becoming the first Vietnamese payment method integrated into the global online entertainment platform iQIYI (December).

At the end of 2024, at the Zalopay Year End Fest 2024 – the first-ever event combining digital payments and a shopping and entertainment music festival held on Nguyen Hue Walking Street in Ho Chi Minh City – Zalopay introduced upgraded versions of the Zalopay QR Multi-Purpose app, including the international version, in partnership with UnionPay. This solution provides a safe and convenient payment experience for international tourists in Vietnam, allowing them to directly use the UnionPay app or more than 15 payment and banking apps from countries such as South Korea, China, Singapore, Thailand, and others.

In addition, Zalopay QR Multi-Purpose has also been implemented in the delivery sector, becoming the primary payment method for cash-on-delivery (POD) orders on Ahamove and BEST Express.

Building a personal finance ecosystem.

The Vietnamese consumer finance market, with outstanding credit accounting for approximately 27.17% of GDP compared to 60-70% in other Asian countries such as China, Japan, Singapore, Malaysia, and Thailand, still has enormous growth potential. Zalopay has seized this opportunity, collaborating with reputable banks and financial institutions to launch three more microfinance products in 2024, simplifying access to credit, savings, and investment for the public, especially those who have not yet accessed banking services.

Understanding the difficulties users face with digital financial products such as credit, consumer loans, or securities, including complex application processes and regulations, Zalopay has partnered with reputable banks and financial institutions to develop six microfinance products. These products focus on supporting the management and investment of very small amounts, suitable for the financial characteristics of most Zalopay users, while also promoting inclusive digital finance.

• Savings Account: In partnership with CIMB, the Savings Account offers a maximum interest rate of 6.1% per year, allowing partial principal withdrawals without affecting the interest rate.
• Installment Payments & Quick Loans: Launched in Q3/2024, Installment Payments (in partnership with CIMB) supports purchases from VND 500,000 with a 12-month term; Quick Loans offer a credit limit of VND 30 million, payable in 24 installments with competitive interest rates, and no additional loan insurance required.
• Current products include: Profitable Balance (in partnership with Infina, 2022) – starting at VND 10,000, accumulating daily profits; Postpaid Account (limit of VND 8 million with CIMB and Lotte Finance); and the pioneering launch of Securities (in partnership with DNSE, 2023), allowing investment from just one stock, recording nearly 1 million new accounts in one year – leading the market in growth rate (according to DNSE, 2024).

These products target Gen Y and Gen Z—a large segment of Zalopay's customer base—while promoting financial inclusion. Zalopay continues to affirm its long-term strategic direction, focusing on developing into a "one-stop" personal digital finance center for users in Vietnam.

Partnering with the community

As an important part of VNG's ecosystem, Zalopay shares a common vision and mission of creating technology coupled with social responsibility through many meaningful community projects.

• Education: Expanding the "Cashless Canteen" project to eight new locations at universities both domestically and internationally, shaping cashless payment habits in schools.
• Disaster Relief: Partnering with Nguoi Lao Dong newspaper to support people in Northern Vietnam in overcoming the consequences of Super Typhoon Yagi (September 2024). Nearly 3 billion VND was raised through donations from over 37,000 individuals and 32,000 benefactors in just one month.
• Social Welfare: In collaboration with the Ho Chi Minh City Federation of Labor, we organized the "Workers' Festival - Charity Fair" program, providing a technology solution for zero-value gift vouchers, helping the Ho Chi Minh City Federation of Labor distribute 9,500 gift vouchers to 9,500 workers for Tet (Lunar New Year) shopping; In coordination with the Crescent Moon Fund and the Nguoi Lao Dong newspaper, the Ho Chi Minh City Federation of Labor mobilized over 621 million VND from more than 62,000 benefactors for the "Spring Journey" program – "Helping each other get home – So that everyone can have a Tet celebration at home this year".

Internal cohesion is based on transparency.

Zalopay continuously builds and improves its cultural initiatives through team development, collaboration, and team-building activities, creating an open and inspiring work environment. To build internal trust, in addition to belief in its mission of a "cashless society," Zalopay understands that only transparency creates the glue that binds the company together.

• The Embracing Excellence and Management Companion programs help enhance the skills and mindset of Zalopay Starters, fostering personal and professional development.
• Sharing sessions such as Zalopay Talks, Business Connecting Session, and Zalopay 360° Feedback create a space for honest exchange and feedback, building an open work culture.
• Team-building activities such as the Zalopay Aspire Awards, Town Hall Meeting, and Hackathon 2024 encourage innovation, open communication, recognition of employee contributions, and foster creativity.

Zalopay will continue its efforts to build and improve cultural initiatives.

Development: Training programs aimed at enhancing employees' skills and mindset.

Collaboration: Encouraging a culture of sharing and feedback, creating a space for frank and open communication at work.

Inspiring: Enhance employee engagement through internal engagement programs and recognition of work performance.

In 2025, Zalopay aims to increase its user base and revenue through diversifying its product ecosystem and optimizing costs. The Multi-Purpose QR Code product remains a key focus, expanding strategic partnerships to provide users with a convenient and secure experience, and enabling synchronized and efficient payment management for retailers.

Simultaneously, Zalopay is boosting its Zalopay Priority program to attract and retain users. In just six months, Zalopay Priority has seen a 50% increase in the total transaction value and payment frequency of its members. The number of high-tier members (Gold and Diamond) has increased by 40%.

Zalopay will prioritize the application of technology and optimize internal processes to reduce operating costs, while continuing to expand financial services such as lending, insurance, and investment, serving the diverse needs of users and business partners. These initiatives will not only help increase revenue but also position Zalopay as a comprehensive digital financial platform, pioneering the cashless payment market in Vietnam.

Outstanding achievements

"Golden Payment Intermediary" at the NAPAS Customer Conference 2024

Outstanding Fintech Company of 2024 at the Vietnam Outstanding Banking Awards.

"Golden Payment Intermediary" at the NAPAS Customer Conference 2024

Outstanding Fintech Company of 2024 at the Vietnam Outstanding Banking Awards.

Top 10 Vietnamese products that are good for consumer rights in 2024 (Zalopay QR Code)

This is a series of excerpts from VNG's 2024 Annual Report. See the full version here.

Source: https://www.vng.com.vn/news/enterprise/zalopay-hanh-trinh-moi-va-mo.html