Whether it’s a coveted piece of tech, a flight ticket, or simply a daily cup of coffee, many young people today prefer to pay by swiping or tapping their cards—settling the bill later. From credit cards and installment plans to Buy Now Pay Later services, these payment methods have gradually become a familiar part of young people's lives.
Thuy Ngan (35, a doctor at a private clinic in Dien Hong Ward, Ho Chi Minh City) uses a credit card that offers flexible membership tiers and up to 10 percent cashback on shopping, travel, dining, entertainment, and online transactions. Furthermore, as she frequently travels for work, Ngan particularly values the card’s airport lounge access benefit.
"I receive two complimentary airport lounge visits. Normally, this would cost around VND900,000, so I’m quite pleased with this perk", Thuy Ngan shares.
Meanwhile, Le Quynh (28, a marketing professional at a multinational corporation) opts for a Visa card that earns air miles, which suits her frequent business travel. She leverages her everyday spending to accumulate miles, which she then redeems for tickets for her personal trips.
By using her card, especially for frequent flight bookings, Quynh has earned enough miles for two round-trip tickets: one to Europe and another to Australia. She only had to cover a portion of the taxes and airport fees.
University lecturer Thu Huong does not use her credit card for every purchase; instead, she primarily uses it for supermarket shopping and coffee outings. Since these are recurring expenses, lecturer Thu Huong takes advantage of promotional programs and loyalty points which she redeems for vouchers to save money. She typically buys coffee one to five days a week.
Thanks to card-linked offers, she saves between VND25,000 and VND35,000 per cup, which adds up to a significant amount over the course of a month. Similarly, when shopping at supermarkets, she earns points on her transactions that are converted into cash back on her card, providing additional value on her regular spending.
Beyond credit cards, many e-wallets now offer BNPL service, which are increasingly popular among young people. A primary reason for this is the wide array of incentives and rewards offered by these cards and digital wallets. When managed wisely, these tools can help optimize personal spending. According to a personal finance expert, the perspective of young people today regarding BNPL has begun to shift.
With the boom in cashless payments, young people have more options than ever to track their transactions, spending limits, and payment schedules directly from their phones. For larger purchases, the ability to opt for installment plans allows for the total cost to be broken down into smaller, more manageable payments, rather than requiring the full amount to be paid at once. In other words, Buy Now Pay Later is increasingly being viewed through the lens of a broader concept: cash flow management.
Cashless convenience can turn costly without careful repayment
While convenient and offering various benefits, Buy Now Pay Later arrangements can sometimes lead to complications. Le Hung, a copywriter, has occasionally leveraged the interest-free periods on his credit card to manage cash flow, bridging the gap until his next paycheck or supporting his business operations.
On one occasion, he accumulated a balance of approximately VND30 million. When the September 5 due date arrived, he was unable to secure the funds in time. By September 10, having acquired the necessary capital, he paid off VND28 million, assuming that the interest on the remaining VND2 million would be negligible. However, because he failed to pay the full amount due, he lost his eligibility for the interest-free period and was also hit with a late payment fee.
The widespread adoption of electronic payment methods has made the distinction between the money one actually possesses and the funds one is authorized to spend less intuitive. A credit limit of VND30 million or VND50 million does not mean the user truly has that amount of cash in their pocket.
Huynh Trung Minh, a finance and banking expert, notes that young people today are more proactive in exploring and utilizing the features of credit cards, rather than viewing them solely as a tool for consumer borrowing. Nevertheless, credit cards carry a downside if users spend beyond their capacity to repay. Cardholders are granted a specific credit limit and can enjoy an interest-free period, provided they pay the full balance on time.
Conversely, if a user makes only the minimum payment or pays late, they may incur interest and various fees, as stipulated by each bank, causing their outstanding balance to grow rapidly. Credit cards, along with BNPL services and installment payment options, offer the convenience of spending before paying; however, this very feature can easily lead users to overspend. Once a balance accumulates, failing to manage it or make timely payments can result in interest and fees that become a significant financial burden.
According to expert Huynh Trung Minh, credit card users should be fully aware of their payment due dates, the total amount owed, the minimum payment required, and any applicable fees. Most importantly, one should only spend within their means to ensure that the convenience of a credit card does not turn into a personal financial strain.
