The Solution for VNPAY’s Operational Process Optimization

VNPay is a solution that allows customers to use their bank cards/accounts to pay for transactions. With the goal of digitizing payments for Vietnamese people, VNPay is gradually asserting its position in this fiercely competitive field. Let’s explore VNPay’s journey to realize its dream with 1Office!

Leading the Wave of Financial System Digitization

The Industry 4.0 revolution has spread across all sectors of the economy and finance, and VNPay is no exception. Previously, using ATM cards with POS machines for payments was costly and time-consuming, as users had to carry their cards and enter a PIN for each transaction. VNPay was created to thoroughly address these existing issues.

VNPay operates by using the phone itself as the payment tool, utilizing the camera to scan and link with banks, thereby minimizing incurred costs.

Expanding the Digital Payment System

If we look at neighboring China, cashless payments are popular even in rural markets. This is an inevitable development trend for payments today. VNPay is also pushing for development in this direction. Large service chains, stores, etc., are partners where VNPay prioritizes developing payment acceptance points due to the high customer traffic in these chains. In parallel with expanding payment acceptance points, VNPay is also expanding its network of connections to more banks to make the payment system accessible to more users. Almost all internet banking applications from banks now have a payment link through VNPay. Not only is VNPay accepted by banks as a payment intermediary, but recently, VinID has also partnered with VNPay to enhance the service quality of the VinID application. This has allowed VNPay to access VinID’s ecosystem, which includes 60,000 payment points and over 8 million customers. With such a huge customer base, VNPay needs to quickly adopt digitization to solve the challenge of synchronizing its operational processes.

Customers “Addicted” to Scanning Barcodes

Generations Y and Z currently make up the majority of Vietnam’s population. Their common characteristics are nearly 100% smartphone usage and an extremely fast ability to learn new technologies. This is VNPay’s potential customer base, with a high level of spending and stable payment capacity. “Cashback” is how VNPay attracts customers. A discount of 5-10% on the total bill is a simple and extremely effective method to reach and retain customers. With simple payment steps, almost no latency, and high discounts, VNPay is building a generation of Vietnamese people “addicted” to digital payments. This payment habit reduces the use of cash among Vietnamese people, lowers transaction costs, and promotes e-commerce development. Cashless payments via mobile channels in 2019 saw impressive growth, with a 196.8% increase in volume and a 225.1% increase in value. This shows that it is a fertile ground for VNPay to continue to grow.

Receiving Investment from Major Funds

In July 2019, VNPay became the largest fintech startup in Vietnam after receiving an investment of up to 300 million USD from two funds: Softbank Vision Fund and Singapore’s sovereign wealth fund (GIC). These are two very large funds with different investment appetites. This demonstrates VNPay’s strong appeal and high potential for profitability. Besides operating in a rapidly growing sector, this tech startup also showed foreign investors its ability to operate its machinery with extreme efficiency. With a huge customer base that seemed overwhelming for a startup, VNPay proved the opposite to convince investors. To solve this problem, VNPay chose to use the 1Office business digitization software to optimize its customer management system. 1Office provides the ability to manage and optimize processes in marketing and customer management – the most crucial part of VNPay’s operational machinery.
Sign up for a free trial of 1Office at the link below!