Private joint stock banks dominate international card market

02-Dec-2021 Intellasia | Doanh nghiep va Tiep thi | 5:02 AM Print This Post

According to information from the Vietnam Bank Card Association, the sales of international debit cards increased by 27 percent in the period of 2018 2020. In the first half of 2021, this number was 245.662 trillion dong, up by 41 percent over the same period of 2020. The top five banks with the largest market share include Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, 32%), Vietnam Technological and Commercial Joint Stock Bank (Techcombank, 18%), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank, 10%), Asia Commercial Joint Stock Bank (ACB, nine percent), and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank, eight percent).

The sales of international credit cards grew by 33 percent in the period of 2018 2020. In the first half of this year, the sales increased by 32 percent over the same period of 2020 to 219.611 trillion dong. The top five banks leading the market are Tien Phong Commercial Joint Stock Bank (TPBank) with 17%, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) with 16%, Techcombank with 16%, VietinBank with 14%, Vietcombank with 11 percent and BIDV with eight percent.

Thus, while major banks like Vietcombank, VietinBank, BIDV, Agribank, etc. account for the largest market share in the segment of domestic cards, private joint stock bank dominate the international card market.

It can be seen that over the time in addition to digital banking applications, electronic banking, etc. the segment of bank cards continues to grow strongly with the application of many new technologies. Bank cards are no longer only used for withdrawal as before, but are now used more for spending and payment. The credit card products are also increasingly diversified, allowing users to spend in advance and pay later.

For example, Orient Commercial Joint Stock Bank (OCB) has been promoting its credit card business recently. The bank currently has up to 10 different credit card lines for different group of customers with appropriate spending and payment needs.

The bank has OCB MasterCard Lifestyle a card product specifically for young people. The card uses contactless payment technology with interest rate free for up to 55 days. Customers using the card to make payment can get five percent refund for tourism-related transactions such as air tickets, hotels, etc.

Recently, the bank has signed a cooperation deal to continue to develop incentive programmes in order to increase the number of credit cards used on the existing transaction channels of each party. Previously, in March, OCB cooperated with NAPAS to launch a domestic credit card product according to VCCS standards.

 

Category: Finance, Vietnam

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