B2B Cross-Border Payment Part 8 - How Fintech Companies in Vietnam Benefit from the Growing Tourism Exchange between Korea and Vietnam

The tourism exchange between Korea and Vietnam has been flourishing, with increasing numbers of travelers moving between these two dynamic countries.

This growth is creating a robust demand for efficient cross-border transactions, especially in the B2B sector.

Fintech companies in Vietnam are uniquely positioned to capitalize on this trend, leveraging advancements in B2B cross-border payments to enhance their services and expand their market reach.

Here’s an in-depth look at how the rise in tourism exchange between Korea and Vietnam is benefiting Fintech Companies in Vietnam.

The Rise of Tourism Between Korea and Vietnam

Tourism between Korea and Vietnam has witnessed impressive growth. Korea has become one of the top sources of tourists for Vietnam, while more Vietnamese travelers are also choosing Korea as their destination.

According to the report compiled by FinFan on the cross-border payment market between Vietnam and Korea, it shows:

The total number of South Korean tourists traveling to Vietnam (excluding years affected by the COVID-19 pandemic) has been increasing annually from 2018 to 2023 by an average of 35%, reaching nearly 3.6 million people by the end of 2023.
Conversely, the total number of Vietnamese tourists traveling to Korea has also increased by 27% annually from 2018 to 2023 (excluding years affected by the COVID-19 pandemic), reaching over 2 million people in 2023.

The growth is supported by relaxed visa policies and more frequent direct flights, making travel between the two countries more accessible than ever before.

This tourism boom has had a ripple effect across various sectors, including hospitality, retail, and services.

Hotels, restaurants, and travel agencies are experiencing increased demand, leading to a surge in international transactions.

How Fintech Companies in Vietnam Are Capitalizing on This Trend

Enhancing B2B Cross-Border Payment Solutions:

Increased Transaction Volume:

With the rise in international transactions among travel agencies, hotels, and service providers, there’s a growing need for robust B2B cross-border payment solutions.

Not only that, it has also increased the demand for 5GB SIM card services as well as mobile SIM services in Vietnam or Korea for tourists.

According to FinFan's statistics, each South Korean tourist visiting Vietnam spends approximately 8 USD on purchasing data packages and SIM cards in Vietnam, resulting in a market value of over 28 million USD in 2023.

Conversely, Vietnamese tourists spend around 11 USD for similar purposes, with the market reaching over 50 million USD in 2021.

Fintech Companies are not only stepping in to provide “Faster, Safer, and More Cost-effective” options compared to traditional banking methods, but also accompanying with others for the meet additional customer service needs.

Understanding this issue, FinFan has made continuous efforts to support tourists by partnering with DTOne to develop data and airtime SIM card services in the Vietnamese market.

Specialized Payment Solutions:

Fintech Companies are developing specialized payment platforms that cater to the unique needs of the tourism industry.

These include multi-currency payment gateways and cross-border payment services designed to handle large volumes of transactions efficiently.

For example, FinFan has made continuous efforts to collaborate with domestic e-wallets like MoMo, ZaloPay, VNPay, Viettel Money, VNPT Money, etc. in the Vietnamese market, providing tourists or Vietnamese expatriates returning to the country with “Faster, Safer, and More Cost-effective” payment solutions.

Leveraging Technological Innovations:

Blockchain Technology:

Blockchain is revolutionizing B2B cross-border payments by enhancing security and transparency.

Fintech Companies in Vietnam are incorporating blockchain technology to reduce transaction costs and processing times, making international payments more reliable and efficient.

Integrated Payment Systems:

By integrating payment solutions with online travel platforms and booking systems, Fintech Companies are streamlining the payment process for businesses and travelers alike.

This integration helps facilitate smooth transactions and improves overall user experience.

Addressing Challenges and Seizing Opportunities:

Navigating Regulatory Challenges:

One of the primary challenges for Fintech Companies is navigating the complex regulatory environment of international payments.

Compliance with various regulations is essential to operate effectively and avoid potential legal issues.

Competitive Landscape:

The fintech space is competitive, with both local and international players vying for market share.

To stay ahead, fintech companies must continuously innovate and offer superior services that meet the evolving needs of businesses in the tourism sector.

FinFan Creating Strategic Partnerships:

International Collaborations:

Forming partnerships with international entities can provide Fintech Companies with valuable opportunities to expand their market presence.

Collaborations can lead to new business ventures and enhance competitive positioning in the global market.

With the existing advantage of connecting with over 60 companies specializing in cross-border payments, including Korean companies like SentBe, and a network connecting with over 60 banks and e-wallets in Vietnam like MoMo, ZaloPay, VNPay, etc., FinFan is confident in its ability to provide the most optimal payment solutions for Vietnamese hospitality companies.

These solutions offer “Faster, Safer, and More Cost-effective” payment options and support businesses in attracting more potential Korean customers when they have the opportunity to travel to Vietnam.

Industry-Specific Solutions:

Developing tailored solutions for the tourism industry can help Fintech Companies address specific pain points and deliver added value to their clients.

This approach not only strengthens client relationships but also positions Fintech Companies as leaders in the B2B cross-border payments sector.

Conclusion Regarding How Fintech Companies in Vietnam Benefit from the Growing Tourism Exchange between Korea and Vietnam

The growing tourism exchange between Korea and Vietnam is presenting significant opportunities for fintech companies specializing in B2B cross-border payments.

By leveraging advanced technology, developing innovative payment solutions, and forming strategic partnerships, Fintech Companies in Vietnam can effectively tap into this expanding market.

As the tourism sector continues to thrive, Fintech Companies are poised to play a crucial role in facilitating efficient and seamless cross-border transactions, driving growth and economic prosperity for businesses in both countries.

This article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

For more information, please get in touch with us through:

🌐https://finfan.io

📞(+84) 2866 85 3317

✉ support@finfan.vn

LinkedIn: [FinFan](https://www.linkedin.com/company/finfanio" \t "%5Fblank)