Visa announced a 7-year agreement with Western Union - Will this affect the Vietnam remittance market

Update from FinFan: Visa and Western Union have officially signed a 7-year contract to extend cooperation as well as deploy new products to attract more remittance flows globally.

Preliminary information about the cooperation is to develop several new methods to make the circulation of remittances faster, safer and more economical, including virtual prepaid cards, transferring money directly to bank accounts or e-wallets via** e-wallet aggregator**, etc. For details of the cooperation, read more here.

Will this cooperation have much impact on the remittance market to Vietnam? Let's find out with FinFan in the following article.

Summary of the Vietnam remittance market

The remittance market in Vietnam is vibrant and promising, with the amount of remittances flowing into this S-shaped country increasing year by year, particularly in major cities like Ho Chi Minh. By 2023, the city's remittances are projected to reach nearly $10 billion.

Read more:

. Vietnam remittance - why has this number continuously reached records in recent years?

It is not surprising that the amount of remittances to Vietnam in general and Ho Chi Minh, in particular, can sometimes reach 3 times the amount of FDI capital to this City.

The above figures show the transformation and influence of companies involved in remittance transfer to Vietnam when this industry still has room to develop.

The development of the fintech industry in general and the transferring remittance to Vietnam technology industry in particular

The development of Vietnam's fintech industry is not outside the development rules of the international currency conversion market when today in Vietnam, people have become more accustomed to non-cash payments.

The evidence is that in 2023 alone, non-cash payments reached about 11 billion transactions, an increase of nearly 50% compared to 2022. The total transaction value reached more than 200 million billion VND.

Of which, payments via internet channels reached nearly 2 billion transactions, with a value of over 52 million billion VND (an increase of more than 56% in quantity and 5.8% in value compared to 2022); via mobile phone channel, reaching more than 7 billion transactions with a value of more than 49 million billion VND (an increase of more than 61% in quantity and nearly 12% in value); through the QR code method, there were nearly 183 million transactions, with a value of more than 116 trillion VND (an increase of nearly 172% in quantity and more than 74% in value compared to the previous year).

The value of transactions via ATM is about 2.6 million billion VND, down more than 9% compared to 2022.

(Source: VNEconomy)

This leads companies involved in the field of remittances to Vietnam to quickly change technology to keep up with market growth.

Now, if they do not focus on building a solid technology ecosystem around services, they will not be able to continue to sustain in the market.

Even Visa and Western Union have been consistently updating their money transfer methods, possibly due to their understanding of the evolving psychological needs and consumer behavior habits of users in Vietnam and globally.

They are incorporating new technologies to facilitate the transfer of money, catering to the increasing adoption of these innovations day by day.

Therefore, their collaboration to develop technology this time does not have a significant impact on the money transfer market to Vietnam. At FinFan, we strive to continuously update our technology daily, aiming to serve as an extended arm for cross-border payment companies looking to access this market of over 100 million people.

FinFan's efforts to develop the cross-border payment market in general and remittances to Vietnam in particular.

After nearly 10 years of development in the field of remittances, FinFan has been accelerating the pace of its technological development as we are one of the first technology companies to develop projects related to virtual cards in cross-border payments apply to e-commerce and OTAs.

At the same time, FinFan has been implementing a project related to connecting Vietnamese e-wallets seamlessly with international money transfers with the e-wallet aggregator system.

One of them is the money transfer service from major partners such as MoneyGram, Remitly, TerraPay, Paysend, Ria Money Transfer directly to Vietnam's ZaloPay wallet and supporting ZaloPay to successfully implement incentive programs for customers receiving international money from ZaloPay.

ZaloPay's promotional program for customers

Especially, during the Festival season in February and March with major holidays such as Lunar New Year, International Women's Day, and Valentine's Day for couples in long-distance relationships.

Program details:

Receive international money - Free 400K international flight and data incentives

Genuine gifts for you: from now until March 31, 2024, when receiving international money on ZaloPay, get a combo voucher to pay for phone payment services and air tickets.

Event time: February 1, 2024 - March 31, 2023

Program information:

Customers receiving international money on ZaloPay will IMMEDIATELY receive a voucher to pay for services.

Prize structure:

Combo voucher includes: Payment for services: flight ticket booking, phone recharge and data packages for all customers using the "International Money Receive" service, specifically:

• Phone Voucher | 3% off, maximum 15K

• Voucher Data/Combo | 10% off up to 10K

• International Data Voucher | 10% off up to 20K

• 3% discount voucher - Maximum discount of 400K for airline tickets from 5 million

Steps to participate:

• Step 1: Send information to relatives abroad, log in to MoneyGram/Ria MoneyTransfer/Remitly/Paysend

On computer: Via MoneyGram/Ria MoneyTransfer/Remitly/Paysend website

Download the application on the application store:

Appstore: search with keywords MoneyGram/Ria MoneyTransfer/Remitly/Paysend

Google Play: search keywords MoneyGram/Ria MoneyTransfer/Remitly/Paysend

• Step 2: Make a money transfer order, then enter recipient information and select ZaloPay payment method(information must match the phone number registered to the recipient's ZaloPay account).

• Step 3: Complete the money transfer order and the money will be transferred directly to the recipient's ZaloPay account in Vietnam.

Applicable subjects: All customers using the "Receive money internationally" feature on ZaloPay during the program period

NOTE:

• Each customer can receive a maximum of 01 voucher during the entire program

• Gift cards will be transferred directly to the Customer's wallet.

• The program may end earlier than expected when the promotion budget runs out

• Promotional gifts may be suspended or stopped if the system detects signs of fraud and speculation on the part of users

• In case Zion suspects or discovers that a customer has signs of fraud, forgery, speculation, or profiteering from promotions, Zion has the right not to offer promotions to customers.

• If there is a dispute of interest, ZaloPay's decision is final

• ZaloPay supports resolving complaints within 3 days from the end of the program

• The service is provided and transactions are processed by ZaloPay

Contact Info:

Hotline: 1900 54 54 36

Email: hotro@zalopay.vn

Benefits when receiving international money into ZaloPay wallet

• Receiving money internationally on ZaloPay is completely free: All money transfer fees from abroad will be paid by the sender

• Flexible payment time 24/7: Anytime, anywhere - including weekends and holidays

• Receive money immediately after the order is sent successfully: Time to receive money to ZaloPay wallet is 5 - 10 minutes

• Receive money simply by phone number using ZaloPay: Just provide the phone number using ZaloPay to the sender

• Ensure absolute safety when receiving money: Achieve PCI-DSS security certificate, ensuring information and process of receiving money are absolutely safe.

About ZaloPay

ZaloPay is an e-wallet platform and online payment system developed by ZION Joint Stock Company (a member of VNG) to deploy in-app payment and QR code scanning to pay on devices. mobile device, allowing users to make transactions using phones and tablets running Android and iOS.

For many years (from 2018 to 2020), it has been introduced by many channels as the top 5 e-wallets to use in Vietnam.

ZaloPay provides payment APIs for merchants or third-party services that want to integrate into the ZaloPay application. From the ZaloPay application, users can pay directly with sellers or use integrated services such as buying car tickets, movie tickets or taking the bus.

In 2019, ZaloPay was voted "Vietnam's typical e-wallet" organized by Nhip Cau Dau Tu Magazine with consultation from Ernst&Young Vietnam Co., Ltd.

On January 2, 2020, ZaloPay officially launched a series of features right in the Zalo chat application, including: transferring money to friends, relatives, and family right in the chat frame, lucky money in the chat group and payment feature. maths. This event marks an important milestone in the cooperation between ZaloPay and the Zalo platform, continuing to perfect the diverse and rich ecosystem of applications and utilities that VNG Joint Stock Company (VNG) is providing. to users.

(Source: ZaloPay)

About FinFan

FinFan is a cross-border embedded financial services company, focused on mass disbursement, collection, card processing, IBAN, digital APM solutions, able to provide valuable input and integration above and for the same purpose.

FinFan has integrated with most famous MTO, PSP, switch and core fintech platforms in the world such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal , Ripple, TripleA, FoMo Pay, Wings or Zalo.

For more information please contact us via:

🌐https://finfan.io

📞(+84) 2866 85 3317

✉ support@finfan.vn