Abstract: The global trend of using co-branded credit cards has opened the door for Vietnamese businesses to enter the global market and meet consumers’ growing expectations, experts said.

Company representatives discuss during the sidelines of the Vietnam Co-branded Card Forum.

HO CHI MINH CITY — The global trend of using co-branded credit cards opens doors for Vietnamese businesses to enter global markets and meet consumers’ growing expectations, experts said.

According to Investopedia.com, a co-branded credit card is a card offered by a retailer or other business in partnership with a credit card issuer or network.

These cards typically display both the credit card company and the retailer’s logo and offer benefits such as merchandise discounts, points or rewards when used at sponsoring merchants, but they can also be used anywhere the network’s cards are accepted.

Co-branded cards function like standard credit cards and can be used for purchases anywhere MasterCard, Visa, American Express or the Discover card network is accepted.

Co-branded credit cards have seen significant development around the world.

A report from Javelin Strategy & Research highlights co-branded credit cards as a key area of ​​the US consumer credit market that is expected to expand further.

These cards are not only popular but also vital, attracting consumers who want to strengthen their connections with partner merchants.

The site said analysis showed co-branding accounted for 62% of consumer credit card products across the portfolios of 12 major issuers, appealing to a broad audience and driving consumer participation in rewards programs.

In Asia Pacific, co-branded cards contribute significantly to the number of consumer credit cards.

The Loyalty Report, published by Bonds in partnership with Visa, revealed that two in five members strongly agree that loyalty programmes and associated co-branded credit cards work seamlessly together to create an enhanced customer experience and foster strong brand loyalty.

Vietnam is becoming a promising market with an increasing number of co-branded card users.

Additionally, a McKinsey report predicts that by 2035, many Vietnamese citizens will join the global middle class, with rising disposable income driving consumption growth and presenting huge opportunities for brands in the fast-growing Vietnamese market.

Co-branded cards offer numerous benefits to customers through promotional schemes.

Many companies in Vietnam have followed this trend and partnered with credit card issuers to launch co-branded cards.

For example, Shopee, VPBank and Visa collaborated to launch the first co-branded credit card in Vietnam in 2020, bringing a transformative online shopping experience to millions of Shopee users.

Trần Tuấn Anh, Executive Director of Shopee Vietnam, said: “Over the past four years, our collaboration has revolutionized the online shopping experience for millions of Shopee users through our co-branded cards. This partnership has exceeded expectations, bringing exclusive benefits and unparalleled convenience to our customers, which has resonated strongly with our customers.”

“We continue to receive positive feedback about the card’s seamless enrollment process, fast processing times, and strong security features, all of which contribute to a more streamlined and secure shopping experience,” he said. “As digital commerce continues to evolve, we remain committed to providing our customers with excellent value and innovative solutions.”

Dung Đặng, Country Manager for Vietnam and Laos at Visa, said: “In today’s competitive business environment, businesses that can effectively leverage data to add value throughout the customer journey are more likely to succeed. With the rise of hyper-personalization, co-branding offers great potential for targeted marketing. Consumers want personalized offers. In co-branding, generic value propositions are replaced by more relevant, hyper-personalized ones. This allows brands to meet customers exactly where they are.”

Visa said at the recent Co-Brand Forum in Vietnam that its consulting and advisory services helped facilitate co-brand portfolio acquisitions through in-depth analysis of VisaNet transaction data and data-driven strategies.

Additionally, Visa Marketing Consulting Services facilitates the development of co-branded initiatives by implementing effective marketing strategies, delivering compelling communications that resonate with target groups and product value propositions, and leveraging its exclusive sponsorship platforms and partnerships.

Especially for brands aiming to reach specific target audiences, such as Generation Z, sports enthusiasts or small and medium-sized businesses, these key principles of co-branded growth still apply today.

The company said embracing emerging vertical markets and demographics and understanding their needs will be critical to driving growth in this area.

Key Summary:

• Global trends drive the internationalization of Vietnamese enterprises:The global popularity of co-branded credit cards has provided new opportunities for Vietnamese companies to enter the international market.
• Functions of co-branded credit cards:It combines credit card features with corporate offers to enhance brand loyalty.
• Vietnam market potential: With economic growth, the use of co-branded credit cards in Vietnam continues to increase, promoting consumption growth.
• Successful cases and feedback:Companies such as Shopee have launched co-branded credit cards, which have significantly improved user experience and received positive feedback.
• Data-driven personalized marketing:Through data analysis and personalized services, brands can reach target customers more accurately.

As an important tool in the global market, co-branded credit cards are opening the door for Vietnamese companies to enter the global market. Vietnamese companies can further expand their markets and enhance their brand influence by cooperating with credit card issuers. If you have any questions or need further information, please feel free to contact Jaycy.