New and Open Journey

“Zalopay is pioneering in changing the way millions of Vietnamese people transact, save and develop their personal finances in today's dynamic digital economy,” said Ms. Le Lan Chi - General Director of Zalopay.

Vietnam’s fintech market is currently one of the fastest growing in the ASEAN region, driven by high digital payment adoption rates, rapid smartphone penetration, and strong government support. The shift to cashless transactions has accelerated significantly during the pandemic.

According to Fiingroup, by the end of 2023, Vietnam will have more than 36 million active e-wallets, and this number is forecast to reach 50 million users in 2024. Based on internal estimates, the market size of cashless payments between consumers and businesses through both online and offline channels in 2024 could reach about 165 billion USD, including retail, food, e-commerce, transportation, food delivery and online travel.

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

Consumer lending is also emerging as a new trend, as users look for more flexible forms of finance. It is estimated that outstanding consumer loans in 2024 will reach $186 billion, and can grow at a CAGR of 11% over the next 5 years.

According to data from the State Bank of Vietnam's Payment Department, 22% of Vietnam's population still does not have a bank account, creating a great opportunity for fintech companies to promote financial inclusion. Grasping this trend, Zalopay has collaborated with CIMB Vietnam and SHB Finance to launch flexible installment payment services and in-app cash loans, with a credit limit of up to VND30 million. Despite strong growth, Vietnam's fintech market still faces many challenges, especially in terms of legal regulations and high competitive pressure. Complicated licensing procedures and large capital requirements make it difficult for new businesses to enter the market. Meanwhile, foreign investors also face barriers from commitments in international trade agreements. Competition in the industry is increasingly fierce, especially in the fields of digital payments, consumer lending and blockchain. Consumers are diversifying their payment methods, using multiple e-wallets and digital banks at the same time, making user retention a major challenge for service providers. Cybersecurity continues to be a pressing issue, as risks of fraud and personal data security persist despite regulatory efforts by the Government. These challenges show that fintech companies need to ensure a balance between technological innovation and legal compliance, while building sustainable trust with users for long-term development in an increasingly competitive environment.

2024: New and Open Journey

In that context, Zalopay has quickly affirmed its position as the leading online payment platform in Vietnam. After 6 years of launching, Zalopay is currently serving 16 million users with a portfolio of more than 100 diverse products and service utilities. By the end of 2024, Zalopay had connected with more than 52,000 partners and 81,000 payment points nationwide, achieving a growth of 39% in transaction volume and 149% in revenue from financial services compared to the previous year. In 2023, ZION (Zalopay's parent company) became the only Vietnamese enterprise to be included in the list of Top 200 Global Fintech Companies 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 has gone beyond its “comfort zone”. Constantly testing new limits and new capabilities. No longer confined to the definition of a traditional e-wallet, Zalopay has transformed into an open platform, continuously perfecting its ecosystem to bring diverse and practical personal financial products to Vietnamese users.

“Banks are partners, not competitors”

From July 2024, Zalopay aims to become an open and comprehensive payment platform, identifying banks, financial institutions and payment units in the market as strategic partners instead of competitors. With a large user base and positive transaction volume growth every year, this combination not only enhances user experience but also expands digital payment infrastructure. Zalopay Multi-function QR is a clear demonstration when it allows users to flexibly use different banking applications or e-wallets for payment, without being tied to a single platform. Zalopay has established close cooperation with 13 banks, reaching 57% market coverage, helping to increase smooth payment experience for users.

Research from Decision Lab (2024) shows that Vietnamese users prefer banking apps but are also willing to experiment with new payment methods. Zalopay has exploited this point well by optimizing the platform, providing flexible funding options such as Zalopay Wallet balance, transfer via banking apps, Apple Pay, Google Pay or international cards. This flexibility not only meets diverse needs but also takes advantage of the strengths and reputation of banks to promote cashless payments.

Cooperating with banks also helps Zalopay exploit technological and financial resources, while expanding its young, tech-savvy customer base—Zalopay’s strength—to support the national digital transformation goal by 2025 and the vision of sustainable development by 2045 (Decision 749/QD-TTg, 2020). In this ecosystem, cash is identified as a “common opponent” of Zalopay, banks, and payment intermediaries.

Zalopay is committed to continuing to strengthen its partnerships with banks, creating added value for users, businesses, and the entire digital ecosystem in Vietnam. By cooperating instead of 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 impact of cash and promoting the development of the electronic payment market.

Zalopay QR Multi-Function - Strategic Leap Forward

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

The upgraded version of Zalopay QR Multi-function provides in-depth customer care tools for retailers, including a tiered membership program, an automatic points accumulation system, and personalized incentive distribution. At the same time, businesses can manage and analyze data to design after-sales programs, retain customers, and increase sales through automatic messaging channels. When customers scan the Zalopay QR Multi-function code through any banking application or Zalopay, they automatically accumulate membership points and enjoy incentives from the brand, saving time and eliminating complicated operations such as declaring personal information, membership code, or phone number. The Pizza Company is the first partner to deploy this solution with the "The Pizza Company Membership" program.

In 2024, Zalopay continues to expand Multi-function QR to e-commerce and international platforms by cooperating with Nimo TV (April 2024) and Lazada Vietnam (June); cooperating with Visa to support payments for small and medium enterprises (SMEs), and becoming the first Vietnamese payment method integrated on the global online entertainment platform iQIYI (December).

At the end of 2024, at the Zalopay Year End Fest 2024 event - an event combining digital payment and a shopping and entertainment festival held for the first time at Nguyen Hue Walking Street - Ho Chi Minh City, Zalopay introduced upgraded versions of Zalopay Multi-function QR, including Zalopay Multi-function QR international, in cooperation with UnionPay. This solution brings a safe and convenient payment experience to international tourists in Vietnam, allowing them to directly use the UnionPay application or more than 15 payment and banking applications from countries such as: Korea, China, Singapore, Thailand...

In addition, Zalopay Multi-Function QR is also deployed in the delivery sector, becoming the main payment method for collect-on-delivery (POD) orders on Ahamove and BEST Express.

Building a personal finance ecosystem

Vietnam's consumer finance market, with outstanding credit accounting for about 27.17% of GDP compared to the average of 60-70% in Asian countries such as China, Japan, Singapore, Malaysia, Thailand, still has a lot of room for growth. Zalopay has taken advantage of this opportunity, cooperating with reputable banks and financial institutions to launch 3 more microfinance products in 2024, simplifying access to credit, savings and investment for people, especially customers who have not accessed banking services.

Understanding the difficulties of users with digital financial products such as credit, consumer loans or securities such as complex appraisal documents and regulations, Zalopay has cooperated with reputable banking partners and financial institutions to develop 6 microfinance products. These products focus on supporting management and investment from very small amounts, suitable for the financial characteristics of the majority of Zalopay users, while promoting inclusive digital finance.

• Savings: In cooperation with CIMB, Savings offers a maximum interest rate of 6.1%/year, allowing partial withdrawal of principal without affecting interest rates.
• Installment & Quick Loan: Launched in Q3/2024, Installment (in cooperation with CIMB) supports purchases from VND 500,000 with a term of 12 months; Quick Loan provides a limit of VND 30 million, 24-month installment with competitive interest rates, no requirement to purchase additional loan insurance.
• Current products: Profitable Balance (in cooperation with Infina, 2022) – starting at VND 10,000, daily profit accumulation, Postpaid Account (limit of VND 8 million with CIMB and Lotte Finance), and pioneering the launch of Securities (in cooperation with DNSE, 2023), allowing investment from only 1 stock, recording nearly 1 million new accounts in one year – market-leading growth rate (according to DNSE, 2024).

These products target Gen Y and Gen Z—a large customer group of Zalopay—and promote financial inclusion. Zalopay continues to affirm its long-term strategic orientation, focusing on developing into a “one-stop” personal digital financial center for users in Vietnam.

Accompanying the community

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

• Education: Expanding the “Cashless Canteen” project to 8 new locations at domestic and international universities, shaping cashless payment habits in schools.
• Disaster relief: Joining the Nguoi Lao Dong newspaper to support people in the North to overcome the consequences of super typhoon Yagi (September 2024). Calling for donations raised nearly 3 billion VND from more than 37,000 contributions from 32,000 benefactors in just 1 month.
• Social security: Accompanying the Ho Chi Minh City Labor Federation to organize the program "Workers' Festival - Charity Market", providing technology solutions for 0 VND Gift Vouchers, helping the Ho Chi Minh City Labor Federation to present 9,500 gift vouchers to 9,500 workers for Tet; Coordinating with the Crescent Moon Fund and the Nguoi Lao Dong newspaper, the Ho Chi Minh City Labor Federation mobilized more than 621 million VND in donations from more than 62,000 benefactors for the program "Spring Bus" - "Helping each other go home - So that this Tet everyone can have a Tet Nguyen Nha"

Internal engagement based on transparency

Zalopay constantly builds and improves cultural initiatives through team development, collaboration, and engagement activities, creating an open and inspiring working environment. To build trust internally, in addition to the belief in the mission of “cashless society”, Zalopay understands that only transparency can create the glue that binds.

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

Zalopay will continue to strive to build and perfect cultural initiatives.

Development: Training programs to improve employee skills and thinking.

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

Inspire: Increase employee engagement through internal engagement programs and recognition of work results.

In 2025, Zalopay aims to increase users and revenue through diversifying the product ecosystem and optimizing costs. The Multi-function QR code product continues to be the focus, expanding strategic cooperation, bringing convenient and safe experiences to users and the ability to manage synchronous and effective payments for retailers.

At the same time, Zalopay promoted the Zalopay Priority program to attract and retain users. After only 6 months, Zalopay Priority recorded a 50% increase in total transaction value and payment frequency of members. High-level members (Gold and Diamond) 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 to serve the diverse needs of users and trading partners. These initiatives not only help increase revenue but also help position Zalopay as a comprehensive digital financial platform, a pioneer in the cashless payment market in Vietnam.

Outstanding achievements

“Golden Payment Intermediary” at NAPAS Customer Conference 2024

Outstanding Fintech Company 2024 at Vietnam Outstanding Banking Awards.

“Golden Payment Intermediary” at NAPAS Customer Conference 2024

Outstanding Fintech Company 2024 at Vietnam Outstanding Banking Awards.

Top 10 good Vietnamese products for consumer rights in 2024 (Multi-function Zalopay QR code

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

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