Embedded Finance Part 4 – Use Cases of Embedded Finance in Real-Life in Vietnam
In Part 2 of the series on embedded finance, FinFan discussed the common types of embedded finance in Vietnam.
In this article, let's join FinFan to delve deeper into the practical applications of these types of embedded finance in Vietnam, along with the new opportunities available for fintech companies in this still very dynamic market.
Embedded Banking
Embedded banking, a subset of embedded finance, integrates banking services directly into non-banking platforms, allowing customers to access financial services seamlessly within their daily activities.
In Vietnam, embedded banking is rapidly gaining traction due to the country's growing digital economy and increasing demand for convenient financial solutions.
Here are some use cases of embedded banking in Vietnam:
Embedded Banking Use for E-Commerce Platforms
- Example: Tiki, Shopee
E-commerce giants in Vietnam are incorporating embedded banking services to offer customers instant credit and installment payment options at checkout.
This integration allows customers to make purchases without upfront payments, thereby increasing their purchasing power and boosting sales for merchants.
- Benefits:
Enhanced customer purchasing power
Increased sales and customer loyalty for merchants
Convenient and flexible payment options for customers
Embedded Banking Use for Ride-Hailing and Delivery Services
- Example: Grab, Gojek
Ride-hailing and delivery service providers are embedding banking services to facilitate seamless financial transactions for their drivers and partners.
These services include instant payouts, savings accounts, and micro-loans, helping drivers manage their finances more effectively.
- Benefits:
Immediate access to earnings for drivers
Financial management tools for better budgeting and savings
Access to micro-loans for emergency expenses
Embedded Banking Use for Agricultural Platforms
- Example: Mio
Agricultural platforms in Vietnam are using embedded banking to provide financial services to farmers. These services include access to loans, insurance, and mobile banking, helping farmers invest in better resources and manage their finances.
- Benefits:
Financial inclusion for rural farmers
Access to necessary funds for agricultural investments
Improved financial literacy and management
Embedded Banking Use for Healthcare and Telemedicine
- Example: Doctor Anywhere, Jio Health
Telemedicine platforms in Vietnam are integrating banking services to facilitate payments for medical consultations and treatments. Patients can pay for services directly through the platform, and healthcare providers can manage their revenues more efficiently.
- Benefits:
Streamlined payment processes for healthcare services
Improved financial management for healthcare providers
Enhanced patient experience with convenient payment options
Embedded Banking Use for SME Platforms
- Example: NextPay, Bizzi
Platforms catering to small and medium-sized enterprises (SMEs) are embedding banking services to offer business loans, payment processing, and cash flow management tools. These integrations help SMEs access the necessary financial resources to grow and sustain their operations.
- Benefits:
Access to quick and easy business loans
Efficient payment processing solutions
Improved cash flow management
Embedded Payment
Vietnam's digital economy is expanding rapidly, and embedded payments are at the forefront of this transformation.
Embedded payments integrate payment processing capabilities directly into various digital platforms, enhancing convenience, security, and efficiency.
Here are some use cases of embedded payments in Vietnam:
Embedded Payment Use for Remittance
Remittance, the transfer of money by foreign workers to their home countries, plays a crucial role in the global economy. Traditional remittance methods often involve high fees, slow processing times, and inconvenience.
- Example: FinFan
With the cooperating service between FinFan and international cross-border payment providers like Ria Money Transfer, Remitly, Sendwave, Ria Money Transfer, MoneyGram, Paysend, etc., and the domestic banks or e-wallets in Vietnam like MoMo, ZaloPay, VNPay, etc., senders can now make remittances to Vietnam directly to e-wallets and bank accounts of recipients with just only 3 steps:
Step 1: Visit Remitly/Ria Money Transfer/MoneyGram/Paysend website and create an account. After signing up, click on "Send Money", then go to "New Recipient" to create a new transfer.
Step 2: Select "Mobile Money"or “Bank Accounts”, and then opt from a variety of e-wallets/banks, including MoMo, VNPay, VNPT Pay, and Zalo Pay/ NAPAS banks ecosystem platform.
Please be noted that you should choose the one where the Beneficiary already has a registered e-wallet/bank account.
Step 3: Fill out the Beneficiary's details, including Fist name, Middle name, Last name, and the phone number successfully registered as an e-wallet account by the e-wallet provider, or bank account and SWIFT numbers by the recipient’s bank.
Last but not least, to complete the transfer, enter Sender information such as Name, Address, Phone Number, and Card Information.
- Benefits:
Embedded payments are revolutionizing traditional cross-border remittance transfers by integrating remittance services directly into everyday finance platforms, making cross-border transactions Faster, Safer, and More cost-effective.
Embedded Payment Use for E-Commerce Platforms
- Example: Tiki, Shopee, Lazada
E-commerce platforms in Vietnam are incorporating embedded payments to offer a seamless shopping experience.
With Embedded Payment Services, besides bank payments, customers can complete their purchases directly within the platform using various payment methods, such as credit/debit cards, digital wallets, etc.
- Benefits:
Faster checkout process
Reduced cart abandonment rates
Improved customer satisfaction
Embedded Payment Use for Ride-Hailing and Delivery Services
- Example: Grab, Gojek, Be
Ride-hailing and delivery services have embedded payment systems that allow customers to pay for rides or deliveries directly through the app. This eliminates the need for cash transactions and provides a smooth, cashless experience.
- Benefits:
Enhanced convenience for users
Secure and traceable transactions
Improved operational efficiency
Embedded Payment Use for Financial Services and Fintech Apps
- Example: MoMo, ZaloPay, ViettelPay
Fintech apps in Vietnam are leveraging embedded payments to provide a range of financial services, including peer-to-peer transfers, bill payments, and mobile top-ups.
These apps integrate with users' bank accounts and digital wallets, enabling quick and easy transactions.
- Benefits:
Simplified financial transactions
Increased financial inclusion
Enhanced user engagement
Embedded Payment Use for Telemedicine and Healthcare Services
- Example: Doctor Anywhere, Jio Health
Telemedicine platforms in Vietnam have integrated payment solutions to facilitate the payment of medical consultations and treatments. Patients can pay for services directly within the app, streamlining the process for both patients and healthcare providers.
- Benefits:
Seamless payment experience for patients
Reduced administrative burden for providers
Improved revenue cycle management
Embedded Payment Use for Education and E-Learning Platforms
- Example: Topica, Edmicro
E-learning platforms are embedding payment systems to allow students to pay for courses, materials, and subscriptions directly through the platform. This integration simplifies the enrollment process and ensures timely payments.
- Benefits:
Easy access to educational resources
Streamlined payment processing
Enhanced user experience
Embedded Payment Use for Travel and Hospitality
- Example: Agoda, Booking.com
Travel booking platforms in Vietnam integrate payment solutions to handle reservations and payments for accommodations, flights, and other travel services. Customers can complete their bookings and payments without leaving the platform.
- Benefits:
Unified booking and payment experience
Reduced transaction friction
Enhanced customer satisfaction
Embedded Payment Use for Retail and In-Store Payments
- Example: WinMart, Circle K
Retailers are using embedded payment systems for both online and in-store transactions. Customers can pay using digital wallets or QR codes, making the payment process quick and contactless.
- Benefits:
Faster checkout in stores
Reduced cash handling
Improved payment security
Embedded Payment Use for Utilities and Bill Payments
- Example: EVN (Electricity of Vietnam), Viettel
Utility providers are embedding payment options into their apps and websites, allowing customers to pay their bills directly through digital channels. This integration provides a convenient way for customers to manage their payments.
- Benefits:
Simplified bill payment process
Enhanced customer convenience
Timely and secure payments
Embedded Payment Use for Agriculture and Rural Services
- Example: AgriPay, Mio
Platforms serving the agricultural sector are embedding payment solutions to facilitate transactions between farmers, suppliers, and buyers. This includes payments for supplies, equipment, and produce.
- Benefits:
Financial inclusion for rural communities
Secure and efficient transactions
Enhanced financial management for farmers
Embedded Lending
Embedded lending integrates lending services directly into various digital platforms, enabling users to access loans seamlessly within the applications they already use.
In Vietnam, embedded lending is gaining traction due to the rapid digital transformation and increasing demand for convenient financial solutions.
Embedded Lending Use for E-Commerce Platforms
- Example: Tiki, Shopee
E-commerce platforms in Vietnam are embedding lending services to offer customers the option to buy now and pay later (BNPL). This allows customers to purchase products on credit and pay for them in installments.
- Benefits:
Increased purchasing power for customers
Higher sales and conversion rates for merchants
Improved customer loyalty and satisfaction
Embedded Lending Use for Ride-Hailing and Delivery Services
- Example: Grab, Gojek
Ride-hailing and delivery service platforms are providing embedded lending options to their drivers and delivery partners. These loans can help drivers cover expenses such as vehicle maintenance, fuel, and personal emergencies.
- Benefits:
Immediate access to necessary funds for drivers
Enhanced driver retention and loyalty
Improved financial well-being of drivers
Embedded Lending Use for Agricultural Platforms
- Example: NextPay, Agribank
Agricultural platforms and rural financial services are offering embedded loans to farmers. These loans can be used to purchase seeds, equipment, and other essential inputs for farming.
- Benefits:
Financial inclusion for rural farmers
Access to capital for improving agricultural productivity
Support for sustainable farming practices
Embedded Lending Use for Fintech Apps
- Example: MoMo cooperating with TPBank
Fintech apps are integrating lending services to provide users with quick and easy access to personal loans. These apps leverage data analytics to offer personalized loan products based on user behavior and financial history.
- Benefits:
Quick and hassle-free loan approval process
Personalized loan offers
Increased financial inclusion and access to credit
Embedded Lending Use for Small and Medium-Sized Enterprises (SMEs)
- Example: KiotViet, Bizzi
Platforms catering to SMEs are embedding lending services to provide business loans. These loans can help SMEs manage cash flow, purchase inventory, and invest in business growth.
- Benefits:
Access to working capital for SMEs
Simplified loan application and disbursement process
Support for business expansion and growth
Embedded Lending Use for Education and E-Learning Platforms
- Example: Topica, Edmicro
E-learning platforms are offering embedded loans to students for paying tuition fees and purchasing educational materials. This enables more students to access quality education without immediate financial burdens.
- Benefits:
Increased access to education
Flexible payment options for students
Support for lifelong learning and skill development
Embedded Lending Use for Healthcare Platforms
- Example: Doctor Anywhere, Jio Health
Healthcare platforms are integrating lending services to allow patients to finance medical treatments and services. Patients can access loans to cover the costs of surgeries, treatments, and other healthcare expenses.
- Benefits:
Financial assistance for medical expenses
Improved access to healthcare services
Enhanced patient satisfaction and outcomes
Embedded Insurance
Embedded insurance integrates insurance services directly into digital platforms and products, offering users convenient access to insurance coverage within the context of their everyday activities.
In Vietnam, embedded insurance is gaining popularity as it simplifies the process of obtaining and managing insurance, enhances user experience, and promotes financial security.
Embedded Insurance Use for E-Commerce Platforms
- Example: Tiki, Lazada
E-commerce platforms in Vietnam are embedding insurance options into their checkout processes. Customers purchasing high-value items such as electronics or appliances can opt for embedded insurance coverage against theft, damage, or loss during transit or after delivery.
- Benefits:
Enhanced customer confidence and trust
Reduced financial risk for buyers and sellers
Streamlined claims processing directly through the platform
Embedded Insurance Use for Ride-Hailing and Delivery Services
- Example: Grab, Gojek
Ride-hailing and delivery platforms are integrating insurance coverage for drivers and delivery partners. This includes health insurance, vehicle insurance, and coverage for accidents or injuries that may occur during work hours.
- Benefits:
Financial protection for gig workers
Improved safety and well-being of drivers
Peace of mind for users and service providers
Embedded Insurance Use for Travel and Hospitality
- Example: Agoda, Booking.com
Travel booking platforms are offering embedded travel insurance to customers booking flights, accommodations, or vacation packages. This insurance covers trip cancellations, medical emergencies abroad, lost luggage, and other travel-related risks.
- Benefits:
Comprehensive protection for travelers
Simplified insurance selection and purchase
24/7 support and assistance during travel
Embedded Insurance Use for Fintech Apps
- Example: MoMo, ZaloPay
Fintech apps in Vietnam are integrating insurance products to offer users a range of coverage options. This includes life insurance, health insurance, personal accident insurance, and more. Users can manage their insurance policies directly through the app.
- Benefits:
Accessible and affordable insurance solutions
Customizable coverage based on user needs
Seamless integration with banking and financial services
Embedded Insurance Use for Healthcare and Telemedicine
- Example: Doctor Anywhere, Jio Health
Telemedicine platforms are embedding health insurance options for patients seeking online consultations and medical services. This includes coverage for virtual doctor visits, prescriptions, and ongoing healthcare management.
- Benefits:
Integrated healthcare and insurance services
Convenient access to medical care and insurance claims
Improved health outcomes through preventive care
Embedded Insurance Use for Automotive and IoT
- Example: Car manufacturers, IoT providers
Automotive companies and IoT providers are embedding insurance solutions into vehicles and connected devices. This includes usage-based insurance (UBI) for vehicles and insurance coverage for smart home devices against damages or malfunctions.
- Benefits:
Tailored insurance premiums based on usage data
Enhanced safety and security for users
Cost-effective insurance options for IoT devices
Conclusion: Use Cases of Embedded Finance in Vietnam
Embedded finance is revolutionizing the financial landscape in Vietnam by integrating financial services directly into digital platforms and everyday transactions.
Its solutions enhance convenience, accessibility, and security across various sectors, promoting financial inclusion, driving economic growth, and improving overall user experience.
By integrating financial services directly into digital platforms and everyday transactions, embedded finance transforms how individuals and businesses manage their finances, fostering innovation and meeting the evolving needs of a dynamic digital economy.
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
Dr. Tuyen Nguyen
Money Beyond Borders
