The Ree-Pay team/ Photo credit: Ree-Pay
Ree-Pay, a Vietnamese buy now, pay later (BNPL) startup, has put itself up for sale. The company’s founder and CEO, Dragan Bozic, told Tech in Asia that the decision was made due to the “tiny profitability” of the BNPL model and the “investors appetite to invest in more mature and profitable companies.”
“In order to make profit without burning cash from investors, the BNPL platform needs to upsell other traditional financial projects that are in the bank portfolio,” he said.
According to Bozic, Ree-Pay is currently in the due diligence process with some Vietnamese banks that are interested in acquiring the business and its intellectual property.
Launched in 2020, Ree-Pay targets professionals in the country between the ages of 18 to 35 who earn at least 15 million dong (US$605) per month and who do not have credit cards or want to get quick access to credit.
“We are confident our platform can be of high value for banks or licensed consumer finance companies who are competing on attracting young customers,” he said, adding that Ree-Pay’s contracts with retailers are still in place on “exclusive basis.”
Other notable BNPL players in the country include Kredivo and Fundiin. Local e-wallet MoMo also offers a BNPL service.
With low credit card ownership and high consumer demand, Vietnam is a potential market for BNPL businesses. However, challenges include a lack of reliable consumer data, insufficient awareness about BNPL, and competition from banks and consumer lending companies.
Last week, Singapore-based BNPL firm Atome confirmed its withdrawal from the Vietnamese market after entering in April 2022.
Editing by Jaclyn Tiu
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