Hanoi (VNS/VNA) - In Vietnam, business-to-business(B2B)-focused fintech presents new revenue and growth streams for enterprisesof all sizes, experts said. 

A recent McKinsey study noted that business disruptions caused bythe COVID-19 pandemic have pushed companies to accelerate their digitaljourneys. This has fueled B2B e-commerce, and the trend is here to stay as B2Bbuyers are increasingly comfortable with digital channels.

“The B2B e-marketplace is booming, and it’s the perfect time for Vietnam’ssmall and medium-sized enterprises (SMEs) to take part in this continuedgrowth,” sDung Dang, Visa country manager for Vietnam and Laos, said at anevent entitled “New Flows Client Forum.”

“Various industry verticals are seeing increasing use of B2Bmarketplaces, and in Vietnam, the agriculture, B2B travel, and FMCG sectors arelikely to benefit greatly from enhanced supply chain access, ease of paymentoptions and capabilities, and high revenue growth potential,” she added.

Dung also stressed that financial institutions should be able toalso capitalise on this opportunity by supporting issuance for trustedpartners. “Issuers should then leverage marketplace partnerships as acquisitionchannels – through cobranded cards, they are able to support improved B2Bpayment capabilities while also expanding their customer base.”

B2B relationships are vastly different from business to consumer(B2C), as buyers and suppliers often have long-term relationships. 

Interoperability is key to closing the gaps, allowing consumersand merchants from different markets and payment schemes to do businessseamlessly around the world.

As B2B e-commerce strongly develops, digitalpayments have been steadily rising, with the shift to online payments most seenamong emerging consumer groups. 

Online marketplaces and payment portals for various services andutilities have become preferred channels for consumers comfortable with usingthese secure means of shopping and paying for purchases. 

According to Visa’s Consumer Payment Attitudes Study 2022, over 70%of Vietnamese consumers are generally receptive to open banking, especiallyfintech and non-bank service providers that can open an account for them usingtheir existing data with banks.

The ever-growing fintech space, however, presents growth not onlyfor B2C companies. B2B enterprises across various industries can similarlyleverage fintech to tap new markets for rewarding opportunities. Traditionally,commercial card-based payments have been used to support travel andentertainment-related business’s expenses. However, an increasing number ofindustry verticals are now using digital B2B payment solutions to respond tochallenges within supply chain payments.

“There are a lot of recognised pain points in the supply chainsetup of old,” said Gareth Jon Parrington, senior director, head of New Flows,Visa Asia Pacific. 

“Whether from the manufacturer to distributor phase, to thedistributor to retailer phase, issues abound, such as managing credit andpayment risks, the inability to provide credit lines and limits, limitedcapital, and the risk of loss and fraud. Digitising payment collections,however, provides a range of benefits – from improving data and enhancingvisibility for business analytics to eliminating risk of cash and chequehandling, among others.”

Fintech has also responded to the challenges brought on bycross-border payments. With the emergence of B2B e-marketplaces, which need toensure a fast and smooth payout to sellers on their platforms, solutions suchas virtual cards allow for the elimination of cross-border wire transfercomplexities and enable improved data transparency and reconciliation./.