As a leading provider of consumer finance solutions in South Korea, LOTTE Card is among the first companies to implement a BNPL solution in the fast-growing Vietnamese market. Globally, BNPL spend in retail e-commerce is projected to grow to more than US $1,2 trillion by 2024 with a 25% compound annual growth rate, according to Aite-Novarica.
PayLater by LOTTE Finance is a new concept of consumer finance service that allows customers to make transactions on a Buy Now, Pay Later basis. Within the service, LOTTE Finance grants each customer a personal credit limit. Customers can pay for goods and services on LOTTE Finance’s partner e-commerce platforms within this limit, even if they do not have funds in their bank account or cash in their pockets to pay immediately in full. The first merchant in Vietnam to offer PayLater is the flight and hotel booking provider Vntrip.vn, with one of the largest e-commerce marketplaces in Vietnam to follow suit.
Customers can quickly and easily apply for a PayLater credit limit with only an identity card. After their application is approved, they can use the service for three years to shop online before having to verify their identity again.
When making a transaction, customers can make payment in full with their approved credit limit without incurring any interest. Alternatively, they can choose to pay in instalments and divide the transaction value into several smaller payments over a period to reduce the financial burden.
LOTTE Finance uses the Way4 payment system for the BNPL solution logic, including instalment management, end-to-end transaction processing, interest calculation, and real-time integration with 3rd party systems for digital identity, scoring, and contract processing. The new solution extends LOTTE Finance’s credit card business, recently launched on the Way4 digital payment platform.
“It was important for us to find a technological solution that would allow us to implement LOTTE Finance’s best practices in developing lifestyle financial services while taking into account the requirements of large online retailers in Vietnam for a seamless checkout experience. The Way4 platform satisfied all our requirements for solution design and our available use cases.”
“BNPL projects have skyrocketed recently due to the pandemic and the global growth in digital payments adoption. OpenWay has implemented such projects in Asia, Europe and other regions. This geographical diversity, as well as the in-built flexibility of the Way4 platform, helped us realize different visions of BNPL for our clients.”
