HSBC Vietnam has partnered with Mastercard to introduce the HSBC TravelOne credit card, offering an easy reward points redemption experience via the HSBC Vietnam mobile banking app, in association with a wide network of partners including many international airlines and hotels. HSBC is one of the first banks in Vietnam to offer customers the convenience of instantly redeeming reward points on their mobile phones, into flight miles and hotel services from many partners.
Vietnam is one of the first markets HSBC has introduced this product. The TravelOne credit card is an important step in strengthening the bank’s strategy to develop wealth management and personal finance services by meeting the borrowing needs of the growing middle class in the ASEAN region, which is forecast to increase rapidly. The bank aims to achieve strong revenue growth in the unsecured lending segment in Southeast Asia.
Mr. Tim Evans, General Director, HSBC Vietnam spoke at the Event.
The affluent consumer segment, forecast to reach 136 million by 2030, is the driving force behind the Southeast Asian consumer market, accounting for up to 40% of household wealth in key Southeast Asian markets. More than half of this group’s spending is on premium, luxury goods and services. The majority of affluent consumers are young, predominantly millennials (born between the early 1980s and mid-1990s), tech-savvy and avid travelers.
Vietnam is expected to become the 10th largest consumer market in the world by 2030, surpassing Germany and the UK. It is also among the top 5 Asian countries forecast to have the fastest consumer market growth this decade (2021-2030), with a population group earning over $20 a day in purchasing power parity (PPP) terms. Vietnam’s upper middle class (individuals earning between $50-110 a day) is forecast to grow by an average of 17% per year from now until 2030.
“Our customers tell us they want flexibility, rewards and promotions when they travel,” said Taylan Turan, Head of Personal and Strategic Banking, Wealth and Personal Financial Services, HSBC. “We’ve given them just that by giving them the ability to redeem points instantly on our mobile banking app, converting them into rewards from a range of the world’s leading airlines and hotels.
"Our ambition is to deliver products and services that meet the needs of a wide range of customers in Southeast Asia. One way to achieve this is to develop additional digital features that are tailored to the diverse borrowing needs of our customers and that offer benefits that they can use and enjoy immediately. TravelOne is an important part of our plan to grow our unique international cross-border business, through a travel card product that is issued in multiple markets in association with Mastercard."
HSBC’s newly launched card offers a range of travel and lifestyle benefits to meet customers’ pent-up travel demand, which has shown signs of increasing rapidly post-Covid. According to Booking.com’s Travel Confidence Index, Vietnam is the second country in the world in terms of eagerness to travel again post-pandemic, with 85% of Vietnamese travelers planning to travel within the next 12 months. Notably, 62% of survey participants plan to take 1 or 2 trips this year, while 45% prefer to visit famous destinations within 3-8 hours of flight from Vietnam. In addition, 45% of Vietnamese travelers plan to travel because they had planned before the pandemic but had to postpone due to Covid-19.
HSBC's newly launched card product offers a range of travel and lifestyle benefits to meet customers' pent-up travel demand, which is expected to increase rapidly post-Covid.
Mr. Pramoth Rajendran, Country Head of Wealth Management and Personal Financial Services, HSBC Vietnam, said: "Credit cards are an indispensable payment option for Vietnamese people when traveling, especially when traveling abroad. HSBC introduces a unique card product to meet all their travel needs - TravelOne card, designed to suit customers' lifestyle and travel in the digital age. We are pleased to be one of the first banks in Vietnam to allow customers to redeem points instantly on the mobile banking application for rewards from a wide network of many of the world's leading airlines and hotels. We believe this is the best companion for customers when traveling 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 compared to the same period last year. The new card product is expected to further boost 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. However, Vietnamese consumers are eager to embark on new adventures, from family holidays to spontaneous trips or even overseas travel experiences, with the desire to rediscover what they had to put aside during the border closure period. Through this partnership, HSBC and Mastercard offer cardholders superior payment options and benefits, while bringing them closer to priceless experiences, whether it is travel or lifestyle,” said Winnie Wong, Country Manager of Mastercard Vietnam, Cambodia and Laos.
The HSBC TravelOne credit card redemption platform connects with 16 programs of airlines such as Vietnam Airlines, Krisflyer, Asia Miles, Enrich, Air Asia, ... and four global hotel chain business partners including Marriott Bonvoy, ALL - Accor Live Limitless, IHG One Rewards and Wyndham Rewards with a total of 20,000 hotels worldwide. Cardholders are also given four times/year to use 1,300 airport lounges worldwide, four trips to/from airports in Vietnam, travel insurance worth 11.5 billion VND (including travel medical expenses, travel incidents such as delayed flights, delayed or lost luggage ...), many incentives and promotions when booking hotels. In the first two months of launching the card, HSBC also introduced an exclusive offer of a Traveloka e-voucher worth 1 million VND and free flight miles.
HSBC Bank (Vietnam) Limited
HSBC Bank has been present in Vietnam for more than 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 100% foreign-owned bank under the name HSBC Bank (Vietnam) Ltd. 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, two branches in Binh Duong and Da Nang. HSBC is currently one of the largest foreign banks in Vietnam in terms of capital, product structure, and number of customers.
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive digital economy, benefiting everyone, everywhere by making transactions safe, simple, smart and accessible. Using data and secure connectivity, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses unlock their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for everyone.
