ZaloPay is a popular mobile payment application in Vietnam, but has a lower conversion rate than competitors. To increase its user base, ZaloPay proposes nurturing "Gen Z" users and converting users from competitors. It recommends strengthening ZaloPay's brand association with the purposeful Zalo brand to appeal to Gen Z. Tactics to convert other users include promoting unique features, cross-selling packages through other platforms, and developing new payment integration and features aligned with an "All-In-ZaloPay" vision. The proposal includes a 5-year roadmap to increase ZaloPay's monthly active users through these strategies.

1. INCREASING
USER
PROPOSAL

2. EXECUTIVE SUMMARY
SITUATION
ZaloPay is a prominent mobile payment application in competitive
E-wallet market, intergrated in Zalo community
COMPLICATION
ZaloPay is popular but have low conversion rate compared with
others e-wallets
QUESTION
How to increase the number of users using ZaloPay in Zalo?
ANSWER
• Nurture “GenZ” users by making deep connection with the purposeful brand
• Convert users from competitors by different tactics

3. Internet penetration (2019)
Fintech industry still has a great deal of space to grow in Vietnam
1. Vietnamese people are tech-savvy
Smartphone penetration
(2019)
2. Goverment encourage the non-cash transaction and fintech
help fill the gap in financial market, especially in Covid 19 period
Aim to increase banked
population to 70% in 2020
Banked population (2014) –
lowest in ASEAN
Has a credit card (2014)
Has a mobile money
account (2014)
Aim to reduce the ratio of cash
transactions to 10% in 2020
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
66%
84%
31%
4.1%
3.5%
70%
10%
Source: Digital Vietnam 2019 (Datareportal)
Unlocking Vietnam's Fintech Potential 2020 (YCP Solidiance)
1 2

4. 1. Vietnam's fintech industry is expected to
reach a high valuation in 2020
(*) Digital payment includes Mobile payments & Payment platform
2. Digital payment is currently the leading
fintech segment
Market value Growth rate annually
E-wallet users out of 97
million of population (2019)
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
E-wallet is the most prospective sector for development
$7.9B 25%
4.2
mil
Digital payment revenue
2018 2022
11.1 mil
6.4 mil
Fintech product segmentation
3. There is plenty of opportunities for e-wallet player
Source: trade.gov
Unlocking Vietnam's Fintech Potential 2020 (YCP Solidiance)
1 3
2

5. But this is not going to be an easy game for ZaloPay against tough opponents.
Zalopay has a high level of popularity, but it struggles to keep users engaged with the service
1. Momo is dominant in
user mind
Brand association attributes
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
1
2
2
2. ZaloPay has a low conversion
rate despite having the quite
same feature assessment,
especially in Tried and Most
often usage
Source: Vietnam mobile payment 2020 (Q&Me)
N=700
N=700
1
2

6. MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
E-wallet users are young, tech-savvy, mostly from 18 to 34 and live in the big cities
Source: Vietnam e-payment, e-wallet and future of payment 2019 (Cimigo)

7. While the number of e-wallets user is high, this sector has a low level of loyalty to the brands
1. Users prefer use multiple e-wallets 2. Users easy to switch if the wallet is not convenient
(fast & easy to pay) and lack promotion
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
Source: Vietnam mobile payment 2020 (Q&Me)
N=700
1 2

8. ZaloPay is prefered more in HCMC and Female thanks to Zalo messengers
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
Source: vietnamcredit.com.vn
Vietnam mobile payment 2020 (Q&Me)
Advantage Earliest established
with highest users
Transfer money via
phone number
offline;
Have virtual credit
Master Card
Integrated with the
community of Zalo
and VNG ecosystem
Leverage the Sea
Group ecosystem,
especially Shopee,
Foody
DIRECT COMPETITOR

9. AMBITION
Increase 35% “Gen Z” users
from Zalo
INCREASE 20 MILLION ZALOPAY
MONTHLY ACTIVE USER IN THE NEXT 5 YEAR
Convert users from competitors and
increase adoption of currently Zalo
user
• Future source of growth
• Tech-savvy
• High awareness with Zalo
• Current source of grow
• Tech-savvy
• Easy to convert if have suitable feature
WHAT
➢ Reinforce brand positioning,
make closer to Gen Z
➢ Develop “All-In-ZaloPay” brand
➢ Promote transfer in chat feature
➢ Develop new feature for “All-In-ZaloPay”
vision
➢ Increase point of payment and
promotion (cross selling package)
Beside VNG ecosystem’s users, we must build a sustainable user sources and improve
conversion rate
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
WHY
HOW

10. Gen Z is potential source of growth for Zalopay
Demographic
• 15-20 years old
• Live in big cities
• Have bank account
Behaviour
• Internet savvy, open-minded and quickly adopt new
trends adopters
• Online purchase, online payment, online transaction
in a regular basic
• Want to be an explorer, tend to link with the
purposeful brand
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
Zalo has 46.5 million monthly active users (2019)
=> Estimate 35% million Gen Z users in 2025
Source: Zalo Whitepaper 2019 (Zalo)
TARGET USERS
(*) GenZ: born in 1997-2010

11. Nurture Gen Z right now is a strategic investment for increasing ZaloPay users
Faciliated by e-wallet
market and maketing
promotion
Develop “All-In-
ZaloPay” brand
Marketing
promotion to
reinforce Zalo/
ZaloPay
positioning
Road to win the loyalty Gen Z users...
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
Awareness
in e-wallet
Awareness
Zalopay in Zalo
Convert to
loyalty users
... is to make deep connection with purposeful brand
• Lauching marketing campaign “Gen Z break e-world” combined with
viral activities (eg: send messenger or transfer money on Zalo to fund
for Covid...)
➢ Creating the connection with Gen Z. Inspiring spirit of mastering the
game, building a better life or making an impact through technology
➢ Image of the Zalopay and Zalo ecosystems are intertwined in an
indirect way.
• Continue campaign “Gen Z break e-world with ZaloPay” come along
with big promotion (discount voucher/ cash back/ value award...) and
build Tech community with Gen Z
➢ Triggering ZaloPay trials and keeping users with the services.
Reinforce the brand purpose
• Associate with Zalo ecosystem to promote All-In-ZaloPay (develop
new feature from education, entertainment, payment...) to optimize
experience and keep the brand with meaningfull activities
➢ Engaging user with the brand not only functional but emotional

12. On the other hand, Zalopay accelerates convert users from competitors by leverage
Zalopay advantage
“Just use Zalopay in
Baemin’s promotion,
but now have Momo”
“Momo have more point of digital
payment...” (120.000+)
“Because everyone has used
Momo, so do I”
➢ Promote unique feature for all Zalo user:
money transfer in chat
➢ Cross selling package: offer other platform’s
vouchers (Food store to driving app or e-
commerce platform...)
➢ Open more point of online payment, partnership
with prominent app or store (Concung, Be,...)
➢ Develop new feature for the All-In-ZaloPay vision:
order food for group Zalo (for officer or student
like Now) or pay tuition fee...
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
ZaloPay have low conversion rate... ... can recover by different tactics
“I use AirPay for shopping,
Momo for payment, just
ZaloPay for money transfer”

13. 5 year road map to meet the business objectives
2021 2023
2022 2024 2025
CONVERT
USERS &
INCREASE
ADOPTION
INCREASE
35% “GEN Z”
USERS
MARKET ANALYSIS CONSUMER UNDERSTANDING RECOMMENDATIONS
COMPETITORS ANALYSIS
Q1 Q3
Awareness Zalopay in Zalo
Q1 Q3 Q1 Q3 Q1 Q3
Convert to loyalty users
Q1 Q3
Maintain promotion in ZaloPay
Campaign “Gen
Z break e-world”
Campaign “Gen Z
break e-world with
ZaloPay”
Promoto “All-In-
ZaloPay”
Increase point of online payment & cross selling package
Develop new
feature
Promote money
transfer in chat
Develop new
feature
Develop new
feature
Develop new
feature
Promote money
transfer in chat
Promote money
transfer in chat
Promote money
transfer in chat
Technology comunity

14. “Actually I always believe VNG or ZaloPay will make a huge impact
on consumer behavior by technology.
Hope to be a part of that vision and contributes for the company”
Nguyễn Thị Ngọc Bích
• Phone : (+84) 973786172
• Email : bich2nguyen000@gmail.com
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