HSBC is accelerating its efforts to expand its unsecured lending business in Southeast Asia with a new travel credit card product.

HSBC Vietnam, in partnership with Mastercard, introduces the HSBC TravelOne credit card, offering an easy rewards redemption experience through the HSBC Vietnam mobile banking app, linked with a wide network of international partners including airlines and hotels. HSBC is one of the first banks in Vietnam to provide customers with the convenience of instantly redeeming rewards on their mobile phones for frequent flyer miles and hotel services from a variety of partners.

Vietnam is one of the first markets where HSBC introduced this product. The TravelOne credit card is a significant step in strengthening the bank's strategy of developing wealth management and personal finance services by meeting the borrowing needs of the growing middle class in ASEAN, which is projected to increase rapidly. The bank aims to achieve strong revenue growth in its unsecured lending segment in Southeast Asia.

The upper-middle income consumer segment, projected to reach 136 million by 2030, is the driving force behind Southeast Asia's consumer market, holding up to 40% of household assets in key Southeast Asian markets. More than half of this group's spending is directed towards high-end, luxury goods and services. The majority of upper-middle income consumers are young, primarily millennials (born between the early 1980s and mid-1990s), tech-savvy, and enjoy traveling.

Vietnam is expected to become the world's 10th largest consumer market by 2030, surpassing Germany and the UK. It is also among the top 5 Asian countries projected to have the fastest consumer market growth this decade (2021-2030), possessing a population with incomes exceeding $20 per day under purchasing power parity (PPP) conditions. Vietnam's upper middle class (individuals with incomes between $50-110 per day) is projected to grow by an average of 17% annually from now until 2030.

Mr. Taylan Turan, Head of Personal Banking and Strategy, Wealth Management and Personal Finance Services at HSBC, said: "Customers have shared with us that they want flexibility, rewards and promotions when traveling. We have delivered exactly that by giving them the ability to redeem points instantly on our mobile banking app, converting accumulated points into rewards from a range of leading airlines and hotels worldwide."

"Our ambition is to provide products and services that meet the needs of a wide range of customers in Southeast Asia. One way to realize that ambition is to develop more digital features that suit the diverse borrowing needs of our customers, as well as the benefits they can use and enjoy immediately. TravelOne is an important part of our unique international cross-border business development plan, through a travel card product issued in multiple markets in partnership with Mastercard."

HSBC's newly launched card offers numerous travel and lifestyle benefits to meet the pent-up travel demand of customers, which has shown signs of rapidly increasing after Covid. According to Booking.com's Travel Confidence Index, Vietnam ranks second in the world in terms of eagerness to travel again after the pandemic, with 85% of Vietnamese travelers planning to travel within the next 12 months. Notably, 62% of survey participants plan to take one or two trips this year, while 45% prefer to visit popular destinations within 3-8 hours' flight from Vietnam. Furthermore, 45% of Vietnamese travelers plan to travel because they had planned it before the pandemic but had to postpone it due to Covid-19.

Mr. Pramoth Rajendran, National Head of Wealth Management and Personal Finance Services, HSBC Vietnam, said: "Credit cards are an indispensable payment option for Vietnamese travelers, especially on international trips. HSBC introduces a unique card product that meets all their travel needs – the TravelOne card, designed to suit the lifestyle and travel of customers in the digital age. We are proud to be one of the first banks in Vietnam to allow customers to redeem points instantly on the mobile banking app for rewards from a wide network of leading airlines and hotels worldwide. We believe this is the best travel companion for our customers as we have observed a surge in spending on airlines, travel agents and hotels in Q1 2023 compared to the previous year. The total number of active credit cards issued by HSBC is growing strongly at a double-digit rate." compared to the same period last year. The new card product is expected to further boost the growth of our card business and help HSBC expand its market share in Vietnam."

"Tourism in Vietnam has been severely impacted by the pandemic and is recovering more slowly than its regional neighbors. Despite this, Vietnamese consumers are eager to embark on new adventures, from family vacations to spontaneous trips or even overseas travel experiences, hoping to rediscover what was put on hold during border closures. In this partnership, HSBC and Mastercard offer cardholders superior payment options and benefits, bringing them closer to invaluable experiences, whether in travel or lifestyle," said Winnie Wong, Country Manager of Mastercard Vietnam, Cambodia, and Laos.

The HSBC TravelOne credit card points redemption platform connects with 16 airline programs such as Vietnam Airlines, Krisflyer, Asia Miles, Enrich, Air Asia, and four global hotel chain partners: Marriott Bonvoy, ALL - Accor Live Limitless, IHG One Rewards, and Wyndham Rewards, with a total of up to 20,000 hotels worldwide. Cardholders also receive four annual accesses to 1,300 airport lounges worldwide, four trips to/from airports in Vietnam, travel insurance worth VND 11.5 billion (including travel medical expenses, travel incidents such as flight delays, delayed or lost luggage, etc.), and many hotel booking offers and promotions. During the first two months of the card's launch, HSBC also introduced an exclusive offer: a VND 1 million Traveloka e-voucher and bonus frequent flyer miles.

HSBC (Vietnam) Limited Liability Bank

HSBC Bank has been present in Vietnam for over 150 years. The bank opened its first office in Saigon (now Ho Chi Minh City) in 1870. In January 2009, HSBC became the first foreign bank to establish a wholly-owned foreign bank, named HSBC Bank (Vietnam) Limited. Currently, the bank's network includes two branches and four transaction offices in Ho Chi Minh City, one branch and four transaction offices in Hanoi, and two branches in Binh Duong and Da Nang. HSBC is currently one of the largest foreign banks in Vietnam in terms of capital, product portfolio, and customer base.

About Mastercard (NYSE: MA)

Mastercard is a global technology company in the payments industry. Our mission is to connect and empower an inclusive digital economy, benefiting everyone, everywhere by making transactions secure, simple, smart, and accessible. Using secure data and connectivity, partnerships, and passion, our innovations and solutions help individuals, financial institutions, governments, and businesses unlock their full potential. With connections across more than 210 countries and territories, we are building a sustainable world, unlocking invaluable possibilities for everyone.

Bi Le