Credit card “popularization”

As of June 2021, Vietnam has 6.5 million credit cards, while we have nearly 100 million people. This number will increase rapidly in the near future when credit cards have now begun to “popularize” more.

So what is a “popular” credit card? First, a credit card must be able to do “buy first – pay later”. And “popular” means most subjects can apply, who may not have access to banking services or are not eligible to open a traditional credit card.

Budget also comes with fast. If with a traditional credit card, it takes customers 5-7 days to review the application, then with a popular card, this process only takes about 3 minutes.

Credit cards have been issued since 2001, but the development is not high. (Illustration image – Photo: Investment Newspaper)

It only takes a few minutes to have an online card and a few days to have a physical card, the “super speed” time to open a card is the reason why Phuong Anh (Hanoi City) decided to open a credit card in this form.

“I open it very quickly, from 3 to 5 minutes. The process is very simple. I just need to operate on the phone. I need to take a photo of my ID card and verify my face”, Ms. Pham Phuong Anh, Hanoi, shared.

The card issuers said that artificial intelligence (AI), big data analysis (Big Data) and machine learning (Machine Learning) technology will help to score credits for subscribers. This will help “popular” credit cards reach the masses, especially those who have not yet met the conditions to open cards at other credit institutions.

As in the case of Ms. Hue Minh (Hanoi City), because previously she mainly studied and lived abroad, she did not have a credit history in Vietnam, it was quite difficult to apply for a card.

“Overseas, I use credit cards a lot, so when I return to Vietnam, I have difficulty opening a card, I find it very inadequate,” said Dang Vu Hue Minh, from Hanoi.

According to the Vietnam Card Association, credit cards have been issued since 2001, but the development is not high, the number is far behind compared to debit cards.

As of the end of June 2021, Vietnam has more than 6.5 million credit cards. This number is too small compared to the population of nearly 100 million people. However, this is also a “fertile land”, there is still a lot of room for development, businesses can jump in.

A report by the market research company Mibrand shows that the level of credit card usage of consumers in Hanoi and Ho Chi Minh City in 2021 is about 46%. The number of people who are in need of a credit card in the future accounts for about 34%.

With the “popularization”, the loosening of card opening conditions, the number of consumers using “buy now – pay later” cards will surely increase rapidly in the near future.

Huu Tri