LOTTE C&F Vietnam Launches New BNPL Service 'LOTTE FLEX' in Vietnam Market

Introduction

In a significant development for the Vietnamese financial market, LOTTE C&F VIETNAM CO., LTD., a joint venture between Japan's Lotte Group and South Korea's Lotte Capital, has launched its Buy Now, Pay Later (BNPL) service known as "LOTTE FLEX." This service will commence on July 11, 2025, in collaboration with the Vietnam Prosperity Joint Stock Commercial Bank (VPBank), a leading commercial bank in Vietnam.

Background of LOTTE C&F VIETNAM

In April 2023, LOTTE C&F VIETNAM was established as part of the Lotte Group's strategy to expand into Vietnam, recognized as the "third market" after Japan and South Korea. Initially funded by LOTTE Financial in Japan, the venture aimed to introduce BNPL solutions that cater to the rising digital economy in Vietnam. In April 2024, Lotte Capital joined the partnership, providing additional resources and expertise to facilitate the business's development.

Service Development

LOTTE C&F VIETNAM started its journey by implementing the BNPL service at LOTTE CINEMA, a popular cinema chain in Vietnam, in March 2024. The implementation was followed by expanding the service to the LOTTE MART supermarket and additional e-commerce sites. This step was crucial to validate the BNPL model before a nationwide rollout.

In September 2024, LOTTE C&F VIETNAM entered a memorandum of understanding with VPBank, marking a strategic collaboration aimed at enhancing financial services in brick-and-mortar stores. The "LOTTE FLEX" service will be available at all LOTTE MART locations and LOTTE Department Stores across Vietnam starting July 2025. The company's plans also include extending this innovative solution to general retail stores and service providers, with ambitions for comprehensive e-commerce integration.

The Growth of the BNPL Market in Vietnam

Vietnam's BNPL market is projected to expand significantly, with estimates suggesting it could reach around $19.1 billion by 2024, driven by the low credit card penetration rate, rapid digitalization, and government initiatives supporting cashless transactions. By 2030, the market could see explosive growth, estimated to surpass $85.1 billion.

LOTTE FLEX will leverage the technological capabilities of LOTTE C&F VIETNAM, alongside the financial strengths of VPBank in credit assessment and fund management. This collaboration aims to provide a seamless and user-friendly BNPL experience for consumers and businesses alike, addressing shifting payment preferences and enhancing sales opportunities for merchants.

Future Directions

As part of its broader corporate strategy, LOTTE Group focuses on creating synergies across various sectors, including finance, biopharmaceuticals, and intellectual property. With a vision of becoming a “Lifetime Value Creator,” the group is committed to improving quality of life through innovative and sustainable business practices.

The incorporation of BNPL services is expected to revolutionize customer experiences while driving retail growth in Vietnam. By empowering consumers with flexible payment options, LOTTE FLEX not only enhances transaction convenience but also supports the participating retailers in gaining new customers and increasing their average order values.

Conclusion

LOTTE C&F VIETNAM’s entry into the BNPL market is a strategic move that showcases the company's commitment to leveraging digital financial solutions for enhanced consumer experiences. With the collaboration of VPBank and strategic expansions in retail sectors, the future of financing in Vietnam looks promising, and the partnership is poised to lead the charge in transforming the financial landscape of the region.