On February 2nd, CafeF interviewed Marek Forysiak, SmartPay’s Executive Chairman, to better understand SmartPay's journey to help small businesses go far in retail innovation.
Mr. Marek Forysiak: Thanks to stable macroeconomic conditions, the economic growth rate in Vietnam is regularly maintained at a high level and is among the best in the world. The country has a lot of potential for development in all fields. Moreover, with a young population, there is a high number of smartphone users — up to 72%. There is huge room for development in digitalization and modernization.
In recent years, the government has also paid much attention to digital transformation, especially in mobile payments. Regulatory policies also promote development in this field and in fintech in general. So demand for mobile payments will remain high and be a fertile ground for fintechs to grow their business.
Vietnam also has some major unicorns in the digital finance sector. However, these organizations and financial institutions are mainly focusing on solving the problems of large-scale enterprises. Meanwhile, more than 70% of Vietnamese enterprises are small and medium enterprises (SMEs). Small businesses account for about 50% of retail sales.
We need to recognize that businesses in this category are an important driver of development. They also need the opportunity to access capital and further their growth. The starting point for small and medium enterprises, as well as small businesses, is much behind the larger players. If they continue to lack access to financing, the competition will be unequal.
In view of this, SmartPay was officially established in May 2019 with the mission of bringing financial solutions to help small businesses unlock their potential, and promote and improve quality of life for all users.
SmartPay is bringing a variety of business solutions for SMEs, suitable for all players regardless of industry and size. The two categories of solutions that we provide our clients with are:
Payment solutions. These help small businesses accept all forms of payments such as e-wallets, touch payments, biometric payments, bank cards, transfers and QR payments through more than 40 banking applications on the market.
In September 2022, SmartPay launched the SmartPOS multifunctional payment device that accept all forms of payments.
Income solutions. These include Buy Now, Pay Later, 0% interest installments, utility services such as bill payments and phone top-ups, motorcycle insurance and loan payments. The past 10 years have been quite special, with small businesses and SMEs accounting for more than 50% of retail sales in Vietnam. Our purpose is also to promote and support economic development in Vietnam in the next 5 to 10 years. Small businesses need the appropriate e-financial solutions to confidently compete in a highly digitized economy.
Moreover, the market has also witnessed a drastic change in consumer payment habits. People are increasingly preferring cashless forms of payment. This is just the beginning of the journey towards a cashless society with lots of potential. In the near future, SmartPay will continue to deliver practical business solutions, bringing financial services usually only available to large retail chains closer to each small business.
SmartPay's success has also been clearly demonstrated by the fact that after just over 3 years of operation, we have successfully connected a network of 700,000 merchants with 40 million customers. At the same time, SmartPay has processed more than 70 million payment transactions worth more than $4.5 billion.
What makes SmartPay different is its dedication and its commitment to bringing the highest value to its customers. In addition, it is exceptional in its focus on offering the most practical solutions for SMEs and small businesses, compared with other financial institutions.
In 2022, we have reached strategic goals such as reaching an investment agreement of 240 billion VND from SMBC and launching the SmartPOS multifunctional payment device. We have also obtained the consent of Be Group to distribute 24,000 SmartPOS into BeCar and BeFood systems. This is a turning point that brings SmartPay closer to its goal of providing 160,000 units to deliver the best support to Vietnamese small businesses by the end of this year.
Within the next 3 years, SmartPay's goal is to reach more than $8 billion in total annual transaction value. We intend to do this by creating and providing a fully integrated channel of financial products and services. In addition, SmartPay will continue to expand its acceptance points to more than 2 million by 2025. At the same time, the company will also continue to invest in developing superior products and services capable of solving the practical problems of merchants.
I expect that SmartPay's solutions will contribute to helping small businesses catch up with the pace of Vietnam’s digital transformation and improve their competitiveness, thereby contributing to the development of a stronger economy. Unfortunately, over time, many individuals and organizations have taken advantage of people’s ignorance for their own profit and have damaged consumer assets. SmartPay is able to deliver accessible and more secure financial technology services. This will limit negative influences such as fraud, black credit, and usury, and reduce the risk to consumers.
Source: CafeF
SmartPay payment solutions are powered by the Way4 platform provided by OpenWay. OpenWay is the only best-in-class provider of digital payment software solutions, and the best cloud payment systems provider as rated by Gartner, Omdia, Aite, and PayTech. Its Way4 platform has been selected by Tier 1 and 2 banks and processors, as well as ambitious fintech startups. Way4 innovations support card issuing, A2A payments, e-commerce and POS acquiring, digital wallets and payment switching.
The Way4 platform allows SmartPay to integrate with partners and other service providers via APIs. It manages wallet accounts, processes NFC and QR-based transactions, allows to configure loyalty programs and dynamic pricing. Flexible and rich in functionality, it helps businesses meet new challenges, implement innovative features, and scale quickly and efficiently.