National Economics University

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Bachelor of Financial Technology Program

Intake 62

Topics in Fintech
Banking API monetization

Group 7
Name: Nguyễn Hải Phong Student ID: 11203098
Name: Nguyễn Hải Nam Student ID: 11202673
Name: Lê Quang Nghị Student ID: 11206297
Name: Lê Minh Tú Student ID: 11208769
Name: Nguyễn Thanh Sơn Student ID: 11206787
Name: Vũ Khắc Đạt Student ID: 11200773

Hanoi, 9/2023
Contents
I) Introduction....................................................................................................................3
II) Research Question........................................................................................................5
III) API in Vietnam..........................................................................................................6
A) API............................................................................................................................6
1. Concept of API.....................................................................................................6
2. API monetization:................................................................................................6
3. API operates in Vietnam and around the world in the banking sector..........8
B. Open Banking...........................................................................................................11
1. Definition of Open Banking...............................................................................11
2. Overview of the development of open banking globally.................................13
3. Overview of open banking in Vietnam.............................................................14
IV. Relations between API and banks and services......................................................15
V. API monetization business model Canvas................................................................18
VI. Conclusion..................................................................................................................22
VII. References:...............................................................................................................22
I) Introduction
The selection of API monetization within Vietnam's services payment sector as our
research focus is far from arbitrary; it is underpinned by a multitude of compelling factors
that highlight the profound relevance and timeliness of this subject matter.

Foremost among these factors is the recognition of the economic benefits inherent in
integration, a perspective endorsed by software experts. The ongoing evolution of the
API economy, coupled with the widespread adoption of microservices, has facilitated
greater accessibility and adaptability of data and services. This transformative landscape
has empowered businesses to swiftly grow by constructing their business models around
APIs. This can be achieved through the transformation of their own data and services into
platforms that others can leverage, or by accessing third-party services and data sources.
Consequently, the API economy emerges as a catalyst for rapid growth and innovation
within the business ecosystem.

Additionally, APIs have emerged as powerful tools that simplify access to information
embedded within software platforms and their functionalities. They streamline the
process of extracting data from these platforms and harnessing their features, while also
facilitating the seamless integration of various software systems and their data.
Recognizing the potential for businesses to derive substantial benefits from APIs and to
construct business models around them, the API economy is experiencing a surge in
prominence.

Crucially, the backdrop against which we examine API monetization encompasses the
remarkable growth of digital payments within Vietnam. Over the past few years, the
nation has borne witness to an extraordinary surge in the adoption of digital payment
methods. This surge is attributable to several key factors, including the rapid expansion
of the middle class, increased smartphone penetration, and the government's resolute
commitment to promoting cashless transactions. These converging forces have set the
stage for a digital payment landscape in Vietnam that is evolving at an unprecedented
pace.

Moreover, the fintech sector within Vietnam has experienced a flourishing renaissance.
The landscape is now teeming with indigenous startups and international players, all
vying for a share of the burgeoning market. These fintech entities rely heavily on APIs,
or Application Programming Interfaces, as the linchpin of their operations. APIs serve as
the underlying architecture that powers a wide spectrum of digital transactions,
encompassing services such as e-wallets, mobile banking, and payment gateways.
Consequently, understanding the intricate mechanisms of how these APIs can be
effectively monetized emerges as an imperative for ensuring the sustainability and
continued expansion of these fintech enterprises.

Furthermore, APIs form the bedrock of many digital payment services, enabling them to
seamlessly connect with banks, merchants, and other financial institutions. The
development of sustainable revenue models for APIs is essential, serving as the lifeblood
that sustains ongoing innovation, maintains infrastructure, and ensures the delivery of
high-quality services. Effective API monetization strategies are paramount in
empowering these businesses to remain competitive in a crowded and dynamic market.

In parallel, the Vietnamese government has been proactive in regulating the fintech and
digital payment sectors to safeguard consumer interests, protect data security, and
promote fair competition. The challenge lies in staying compliant with these evolving
regulations while simultaneously navigating the complexities of API monetization. This
underscores the critical importance of examining how API monetization aligns with the
regulatory landscape to ensure the industry's stability.

Our research is further fueled by a comprehensive understanding of the local and global
market dynamics. API monetization within Vietnam is not merely a domestic concern but
also holds significance for international companies seeking to penetrate or expand within
the Vietnamese market. Learning from the experiences and strategies of both local and
global players can provide invaluable insights into best practices and potential challenges,
offering a holistic perspective on the subject matter.

Furthermore, our exploration of API monetization within Vietnam's payment services

sector uncovers opportunities for collaboration and innovation. Identifying domains
where APIs can be leveraged to create new services or foster partnerships holds the
potential to drive growth and generate value for consumers and businesses alike.

This inquiry also takes into account the burgeoning importance of the API economy, as
evidenced by Forbes' data indicating that over 40% of large organizations have embraced
250 or more APIs. Moreover, a substantial 71% of these organizations intend to
incorporate even more APIs in the coming year. The burgeoning demand for data
integration is, in part, a response to the ubiquity and proliferation of mobile computing
and the Internet of Things (IoT). These technologies generate vast amounts of data across
a diverse array of devices and systems. APIs, as the foundation of IoT, facilitate seamless
integrations and interoperability.

In addition to facilitating data integration, APIs offer customers and developers the
flexibility to mix and match APIs from various sources, thereby enhancing
interoperability, customizability, and efficiency to meet rising customer expectations.
APIs are transformative customer-facing, customizable software interfaces that bridge
previously distinct software components, enabling successful communication while
overcoming platform incompatibilities. The ingenuity of APIs has underscored their
critical role in enterprise solutions, driving efficiencies, growth, and innovation. This
transformative potential has given rise to the API economy, an informal movement
characterized by the use of APIs to enhance organizational profitability.

The API economy is distinguished by its ability to boost API access and usage, a pivotal
benefit that empowers customers to collaborate with API providers in crafting more
immersive and efficient user experiences. Unlike physical economies, APIs and
microservices can be rapidly stacked, modified, and upgraded, offering enterprises
enhanced flexibility, agility, and data accessibility. APIs provide the framework for
improved business operations, facilitating growth, efficiency, and innovation across the
spectrum. Moreover, APIs level the playing field, enabling businesses of all sizes and
levels of development to harness the same tools, cultivate partnerships, and integrate
internal applications.

Nonetheless, the API economy is not without its challenges. These include issues related
to controlling access to APIs, managing APIs, backend systems, infrastructure, and
deployment. Effective access control is imperative to ensure both safe access and the
security of backend data. Achieving this demands the implementation of a suitable API
gateway, as not all gateways are created equal, necessitating careful selection to meet
specific security requirements. Furthermore, the complexities of overseeing APIs,
backend systems, infrastructure, and deployment require meticulous monitoring to
prevent costly oversights. Building meaningful analytics into the API infrastructure is
critical to ensuring compliance and delivering value to the organization.

Within the API economy, the success of businesses hinges on several factors, including
the choice of the right API platform to ensure protection and positive customer and
technical experiences, the formulation of a robust strategy for assessing API revenue
opportunities, the cultivation of a culture centered on digital transformation, and the
meticulous management of the API lifecycle.

In summary, the selection of API monetization within Vietnam's services payment sector
as the focal point of our research is firmly grounded in the confluence of several
significant

II) Research Question

 What is API and open banking?
 How do banks use API to monetize from basic services ?
 What are the key challenges and opportunities for banks in monetizing APIs,
particularly in the context of open banking initiatives and PSD2 compliance?
III) API in Vietnam

A) API

1. Concept of API
a. API gateway
It is a component that stands between clients and services and provides centralized
handling of API communication between them. It can perform various tasks such as
routing, security, monitoring and transformation.

An API gateway accepts API requests from a client, processes them based on
defined policies, directs them to the appropriate services, and combines the
responses for a simplified user experience. Typically, it handles a request by
invoking multiple microservices and aggregating the results. It can also translate
between protocols in legacy deployments. For example, a Bank might use an API
gateway to provide mobile clients with an endpoint for retrieving all product details
with a single request. The gateway requests information from various services, like
product availability and pricing, and combines the results.

b. API management
API management is the process of developing, designing, monitoring, testing,
securing, and analyzing APIs for organizations. API management platforms provide
a robust set of software and processes with this functionality, hosted on premises,
in the cloud, or a hybrid environment.

API management enables organizations to make both their public and private APIs
consumable and scalable. A full-lifecycle API management platform offers these
benefits by including functionality for developers to easily discover and use APIs,
while also enabling organizations to control access, analyze usage, and enforce
security & governance policies of APIs.

In effect, API management platforms are used to govern an enterprise’s entire API
ecosystem, managing the API lifecycle from beginning to end.
2. API monetization:
API monetization is the process by which businesses create revenue from their
application programming interfaces (APIs). APIs are the cornerstone of what is
widely seen as the next iteration of business development, where having well-
developed APIs establishes and maintains relationships in a digital economy. APIs
are the wholesale version of a web presence, allowing others to access and
integrate your data and resources into their public or private sites and applications.
 API monetization is your key to unlocking this treasure, turning your company’s
data into a valuable asset by allowing others to access it for a fee.

To further illustrate the versatility and potential of data monetization, let’s dive into
examples from various industries that show how businesses have successfully learned
how to monetize APIs.
Financial Services: Many fintech companies and banks have embraced API
monetization to provide access to financial data, such as account information,
transaction history, and payment processing services. Like Plaid. Plaid is a financial
services API that allows developers to connect their applications with users’ bank
accounts, providing access to account balances, transaction histories, and other
financial data, enabling the creation of a variety of fintech solutions while generating
revenue through a pay-per-use pricing model.
Mapping and Location Services: Companies like Google and Mapbox have
successfully monetized their mapping and geolocation APIs, allowing developers to
integrate real-time maps, geocoding, and routing services into their applications.
These APIs are widely used in industries such as logistics, transportation, and travel.
Social Media: Platforms like Twitter and Facebook offer API access to their vast data
troves, including user-generated content, social graphs, and user behavior insights.
 By monetizing these APIs, they empower businesses to analyze trends, develop
targeted marketing campaigns, and gain a deeper understanding of their audience.
Weather Forecasting: Weather data providers, such as AccuWeather, offers APIs that
deliver real-time weather information, historical data, and forecasts. By monetizing
these APIs, they provide valuable insights to various industries, including agriculture,
logistics, and energy management.
3. API operates in Vietnam and around the world in the banking sector

a. World
The development of open banking has become a trend for many banks worldwide in
recent years. In 2021, there were 1,573 banks offering open banking platforms, marking a
175% increase compared to the previous year, and they provided a total of 5,133 APIs.
The global API banking market was valued at $24.7 billion in 2022, and is projected to
reach $217.3 billion by 2032, growing at a CAGR of 24.7% from 2023 to 2032.
b. Vietnam
In Vietnam, many banks have been adopting open banking in their operations. For
instance, VietinBank, a Joint Stock Commercial Bank, initiated the implementation of
open banking in 2017. As of now, 148 services from 116 partners are offered through the
VietinBank iConnect application, with over 12 million financial transactions being
conducted on average each month through this platform.

Similarly, the Joint Stock Commercial Bank for Investment and Development of Vietnam
(BIDV) has promoted and perfected its open banking payment gateway, known as BIDV
Paygate, connecting with nearly 2,000 retail service providers and payment
intermediaries. This allows customers to make non-cash payments for electricity, water,
television, internet, telecommunications, flight tickets, movie tickets, tuition fees,
medical bills, tax payments, and various government services.

Furthermore, the Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV) has pushed for and completed its open banking payment gateway,
BIDV Paygate, connecting with almost 2,000 retail service providers and payment
intermediaries. This enables customers to make payments for electricity, water,
television, internet, telecommunications, flight tickets, movie tickets, tuition fees,
medical bills, taxes, and various government services without using cash.

Lastly, Tien Phong Commercial Joint Stock Bank (TPBank) offers a payment
connectivity service through open APIs, allowing businesses to inquire about and track
account balances, transaction statuses for outgoing fund transfers, and other related
information based on their needs.
c. Regulation
As such, it can be seen that open banking helps banks diversify financial services and
reach different customer segments with reasonable costs. However, in reality, Vietnam
does not yet have specific and comprehensive regulations and guidelines for open
banking.

When building and implementing open banking, commercial banks in Vietnam primarily
rely on Circular No. 39/2014/TT-NHNN dated December 11, 2014, which provides
guidance on intermediary payment services. This circular includes provisions that allow
banks to cooperate with third parties in providing financial services and various
government decrees, ministerial circulars regulating electronic banking, cashless
payments, opening and using payment accounts, technical safety conditions, and
customer information security.

While the above-mentioned regulations cover various aspects related to open banking to
some extent, they still do not provide a complete and specific framework to fully support
financial institutions in implementing this business model effectively.

The State Bank of Vietnam has been working on a draft circular for the application of
Open API in the banking sector. The central bank has been partnering with Japan’s NTT
Data Company to test-run an Open API open canvas solution.

d. How API works:

=> API’s development potential in the future

B. Open Banking

1. Definition of Open Banking

The concept of "Open banking" is understood as the bank sharing and taking advantage
of the data that customers allow to exploit to a third-party service provider to convert it
into an application structure that provides products and services, financial services
tailored to customers. Depending on the legal regulations of each country, the way open
banking operates is different (BIS, 2019).

Similar to the above point of view, research by Laplante and Kshetri (2021) suggests
that open banking is a specific financial ecosystem that shares data with third-party
service providers through companies. application programming interface (API)
technology in a controlled manner, in accordance with the provisions of the law and
approved by the customer. This helps third-party service providers to easily develop
applications and provide services to customers smoothly and conveniently. The
provision of this data is controlled by a high security mechanism and there are full
instructions for individuals and organizations

API is a system with operating systems and applications as a whole to communicate

with each other and utilize each other's capabilities. A complete software experience is
the result of many software communicating with each other, each software is also a
combination of modules, or packages. Dividing software into many layers will help
programmers or modules take advantage of each other. Therefore, the open application
programming interface (Open API) has the function of coupling the components of the
software together.

Open banking offers a financial product as a service, similar to the Software-as-a-

Service (SaaS) model (which is a software distribution and licensing model in which
software is licensed on an open basis). central registry and archive). Accordingly, Open
Banking Cloud consists of a collection of open banking entities, closely linked through
data sharing, using APIs to analyze data to provide micro-products and services
(money). deposit, withdrawal, payment, loan, transfer…) and macro products and
services (origin of loan and repayment, origin of collateral…) suitable for each type of
customer row.

The shift from closed banking to open banking is depicted in photo. Accordingly, in the
closed banking ecosystem, transactions mainly take place between customers and banks.
Customers can only access products and services from the bank and the bank is the
customer's information manager. In contrast, in the open banking ecosystem, the
connection is made between three objects including banks, customers and third-party
service providers. At this point, the data is shared among different objects.
In open banking, products and services are provided in the following two forms:
 Products and services of the bank are integrated with products and services of
third-party service providers. Accordingly, the bank has the role of holding the
customer's information and providing the customer's information to a third-
party service provider on the condition that the customer consents; a third-party
service provider that acts as a service provider to customers and is allowed to
share customer data and information by the bank to complete a process of
providing services to customers; customer is a user of the bank's products and
services and a third-party service provider, and allows the bank to use and
provide its information. Some common products and services for this model
are installment payments, insurance, payment...
 Products and services of third-party service providers are integrated on the
bank's application. Accordingly, the bank is the unit that integrates and
provides products and services of a third-party service provider on the bank's
application platform to customers, and also provides banking services. to
customers; third-party service provider means one that connects its products
and services with the bank through APIs shared by the bank; customer is a
service user of a third-party service provider through a bank's application and
uses banking services to complete financial services.

2. Overview of the development of open banking globally

According to Research and Markets (2021), the global open banking market grew from
$11.79 billion in 2020 to $15.13 billion in 2021, with an annual growth rate of 28.4%.
The main driver for this growth is the fact that consumer behavior and habits tend to
change in the context of the recent complicated developments of the Covid-19 epidemic.
Accordingly, customers increase the demand for online shopping and account
transactions, limiting the access to the physical headquarters of suppliers and banks.
According to this report, by 2025, the market is expected to reach 37.77% billion USD
and the annual growth rate will reach 15.7%. North America is the largest region in the
open banking market in 2020 and Asia is the fastest growing region in 2021. According
to a survey by IDC Group of 146 banks in the Asia-Pacific region Duong, 70% of open
banks increase their customer reach and 40% of these see changing direct/indirect
revenue streams in open banking and they are likely to increase openness banks in the
coming years.

In 2021, the proliferation of online payment platforms is the basis for the development
of open banking. Besides, thanks to the diversification of payment means, the
development of e-commerce platforms, improved network bandwidth, and the
introduction of new technologies have contributed to promoting the strong
development. power of digital payment systems. Payment gateway APIs, commonly
used technology in open banking, are used on online platforms such as mobile
payments, Paytm and Google Pay to manage recurring payments. The increase in online
payment platforms is the driving force to expect open banking to thrive in the coming
years.

Research by Deloitte (2021) shows that open banking is considered a prominent

phenomenon in recent years. The approach to open banking in different countries will
have different approaches. Within the framework of this article, the author selects two
representative countries in North America (a region with open banking growth in 2020)
and in Southeast Asia (a region with similar geographical locations). management with
Vietnam) is Brazil and Singapore to study implementation experience.

3. Overview of open banking in Vietnam

Although Open Banking has been around for a while, it is quite new for most users and
still has certain risks. However, security is one of the most important issues to keep in
mind when implementing this model.

In Vietnam, the Government has issued Directive No. 16/CT-TTg on strengthening

capacity to access the 4.0 technology revolution. This is the foundation for ministries,
departments, and sectors to build information technology and digital technology
infrastructure to ensure network safety and security, creating conditions for people and
businesses to easily and equally access digital content development opportunities. The
State Bank is also gradually completing the legal framework to manage the Bank's
digitalization activities in the spirit of Directive No. 16/CT-TTg.

The Governor of the State Bank of Vietnam has established a Steering Committee on
Fintech under Decision No. 328/QD-NHNN dated March 16, 2017. Accordingly,
 researching, building the connection, and sharing data through the open application
program interface (Open API) is one of the key tasks of the Board.

For commercial banks, Open Banking activities are being implemented at many levels
and in different forms of services. Among them, OCB is a pioneer in implementing an
open banking model with an API platform and successfully implemented it at the end of
2019. According to Mr. Nguyen Dinh Tung, General Director of OCB, Open Banking is
an important part of OCB's digital transformation strategy. The open API platform
provides more than 30 bank APIs so that partners can connect the OCB system into the
ecosystem.

OCB has now invested in an enterprise-class open API platform with the highest
security standards.

VietinBank launched iConnect – an Open Banking platform in 2019, providing more

than 100 APIs and connecting with over 60 partners via APIs at the time of launch, this
number has now more than doubled.

Other banks such as Vietcombank, BIDV... have also initially built and deployed to
provide Open API to partners.

Nam A Bank brings Open Banking Digital Bank users and customers version 2.0 with a
modern and different interface.

In general, banks are increasingly expanding cooperation, connecting with technology

companies, Fintech to catch up and take advantage of business opportunities from the
digital economy.

IV. Relations between API and banks and services

 How API connects between banks and services
The main purpose of the API operating in Open banking is to help connect
customer accounts and allow access, retrieval and reconciliation of transactions
between financial institutions and customers to ensure authenticity through
application programming interface.
  For example, a bank may develop a mobile app that allows customers to access
their account details as well as information about ATM locations, branch hours,
etc. In order to optimize their app, they would need to use an API to connect with
a third party. This would allow the bank to offer even more features, such as
information on credit scores, mortgage tools, etc.
 Banks provide services through APIs by offering access to various types of
financial and non-financial data. The specific data made available through these
APIs can vary depending on the bank's offerings and the services they provide.
Here are some common types of data that banks typically provide through APIs:
1. Account Information:
 Account Balances: APIs can provide real-time or periodic account
balance information for checking, savings, and other types of
accounts.
 Transaction History: Banks may offer APIs that allow access to a
customer's transaction history, including details of deposits,
withdrawals, and transfers.
2. Payment Services:
 Fund Transfers: APIs enable customers to initiate fund transfers
between their own accounts or to other accounts, both within and
outside the bank.
 Bill Payments: Banks provide APIs for paying bills, such as utilities,
credit card bills, and loans, either as one-time payments or recurring
transactions.
3. Identity Verification:
  Customer Identity Verification: Banks may offer identity verification
services through APIs, allowing businesses to verify the identity of
their customers during onboarding or transactions.
4. Credit Data:
 Credit Scores: Some banks provide access to credit scores and credit
reports through APIs, which can be useful for lenders and financial
institutions to assess creditworthiness.
 Credit History: APIs can provide detailed credit history information,
including open credit accounts, payment history, and outstanding
balances.
5. Currency Exchange Rates:
 Foreign Exchange Rates: Banks often offer APIs that provide real-
time foreign exchange rates for currency conversion, essential for
international transactions.
6. Location and Branch Data:
 ATM and Branch Locations: Banks may offer location-based APIs
to help customers find nearby ATMs, branches, and service points.
7. Customer Profiles:
 Customer Information: Banks provide APIs that allow businesses to
access customer profiles, including contact information, preferences,
and account ownership details.
8. Financial Products:
 Loan Information: APIs can provide details about available loans,
including interest rates, terms, and application processes.
 Investment Data: Banks may offer APIs to access investment
portfolios, asset allocation information, and performance data for
investment accounts.
9. Payments and Collections:
 Payment Status: Businesses can use APIs to check the status of
payments received from customers and manage accounts receivable.
 Direct Debit and ACH Data: APIs enable the initiation and
management of direct debit or automated clearing house (ACH)
transactions.
10. Regulatory Data:
 Compliance Data: Banks may provide APIs for regulatory
compliance reporting, offering data required by regulatory
authorities for reporting and auditing purposes.
11. Insurance Information:
 Insurance Policies: If the bank offers insurance services, APIs can
provide information on policies, coverage, premiums, and claims.
12. Risk Assessment Data:
  Risk Scores: Banks may offer APIs that calculate and provide risk
scores, helping businesses make informed decisions about lending or
financial services.

V. API monetization business model Canvas

 Key Key Activities Value Customer Customer
Partners Proposition Relationships Segments
- Developing and
- Banks and maintaining - Enabling - Self-service: - Firms: E-
financial secure, scalable, fast, Customers can use commerce
institutions. and user-friendly convenient, the APIs to platforms and
APIs for and offering a perform payment merchants
- Mobile payment variety of transactions who want to
network services. payment without any human offer payment
operators. methods. intervention. services to
- Integrating their
- APIs with - Reducing - Automated customers
Government various operational service: Customers
and platforms. costs and risks can receive - Individual
regulators. for merchants notifications, customers
- Providing and customers. confirmations, who want to
customer support receipts, etc. via make online
and technical - Enhancing SMS, email, or app purchases or
assistance. customer messages. payments
experience using their
- Complying and loyalty. - Personal preferred
with legal and assistance: methods
regulatory - Providing Customers can
requirements. access to a contact the
large and customer service
growing team via phone,
market of chat, or email for
digital any queries or
consumers. issues.

- Co-creation:
Customers can
provide feedback
and suggestions
for improving the
API solutions.

Key Resources Channels

- API platform - Online: Social

and media, email, etc.
 infrastructure.
- Offline: Events,
- Payment workshops, etc.
gateway and
processing - Partnerships:
system. Banks, mobile
operators, etc.
- Data and
analytics.

Cost Structures Revenue Streams

- Fixed costs: API platform development - Transaction fees: Charging a percentage or

and maintenance, payment gateway fees, a fixed amount per transaction processed
salaries, rent, etc. via the APIs.

- Variable costs: Marketing and - Subscription fees: Charging a monthly or

promotion expenses, customer service annual fee for accessing the API platform
costs, taxes, etc. and services.

 Key Partners: These are the entities that the business collaborates with to create
and deliver value to the customers. In this case, the key partners are banks and
financial institutions, mobile network operators, e-commerce platforms and
merchants, government and regulators, and fintech start-ups and developers. These
partners provide access to payment methods, platforms, channels, markets,
regulations, and innovations that enable the business to offer payment services via
APIs.

 Key Activities: These are the most important actions that the business performs to
create and deliver value to the customers. In this case, the key activities are
developing and maintaining secure, scalable, and user-friendly APIs for payment
services, integrating APIs with various platforms and channels, providing
customer support and technical assistance, complying with legal and regulatory
requirements, and marketing and promoting the API solutions.
 Key Resources: These are the assets that the business needs to create and deliver
value to the customers. In this case, the key resources are API platform and
infrastructure, payment gateway and processing system, data and analytics, human
resources (developers, engineers, managers, etc.), and brand and reputation. These
resources enable the business to develop, operate, manage, and improve the API
solutions.

 Value Propositions: These are the benefits that the business offers to the
customers through its products or services. In this case, the value propositions are
enabling fast, convenient, and seamless payment transactions across different
platforms and devices, offering a variety of payment methods and options,
reducing operational costs and risks for merchants and customers, enhancing
customer experience and loyalty, and providing access to a large and growing
market of digital consumers. These value propositions solve the problems or
satisfy the needs of the customers who want to make online purchases or payments
using their preferred methods.

 Customer Relationships: These are the types of interactions that the business
establishes with its customers. In this case, the customer relationships are self-
service, automated service, personal assistance, and co-creation. These customer
relationships reflect how the business communicates with its customers before,
during, and after the payment transactions via APIs.

 Channels: These are the ways that the business reaches out to its customers to
deliver its value propositions. In this case, the channels are online (social media,
email, etc.) and offline (events, workshops, etc.). These channels help the business
to inform, educate, persuade, and serve its customers about its API solutions.

 Customer Segments: These are the groups of people or organizations that the
business serves or aims to serve. In this case, the customer segments are Firms (e-
commerce platforms and merchants who want to offer payment services to their
customers) and individual customers (who want to make online purchases or
payments using their preferred methods). These customer segments represent the
target markets of the business for its API solutions.
  Cost Structure: These are the most significant expenses that the business incurs
to create and deliver value to its customers. In this case, the cost structure consists
of fixed costs (API platform development and maintenance, payment gateway
fees, salaries, rent, etc.) and variable costs (marketing and promotion expenses,
customer service costs, taxes, etc.). These costs reflect how efficiently or
effectively the business operates its API solutions.
 Revenue Streams: These are the sources of income that the business generates
from its customers for delivering its value propositions. In this case, the revenue
streams are transaction fees (charging a percentage or a fixed amount per
transaction processed via the APIs) and subscription fees (charging a monthly or
annual fee for accessing the API platform and services). These revenue streams
reflect how much value the customers perceive from the API solutions.

VI. Conclusion
In conclusion, the API economy within Vietnam's services payment sector holds
immense potential and is driven by various factors, including the recognition of economic
benefits through integration, the rapid growth of digital payments, the flourishing fintech
sector, and the need for effective API monetization strategies. The development of open
banking initiatives and the adoption of APIs in the country have paved the way for
innovation and collaboration between banks, businesses, and developers.

While the regulatory landscape in Vietnam is evolving, it is essential to establish

comprehensive regulations to fully support and secure the open banking model. The State
Bank of Vietnam's efforts in this direction, such as partnering with technology companies
for Open API testing, indicate the recognition of the importance of regulatory framework
development.

Looking globally, the API economy is on the rise, with substantial growth projected in
the coming years. As the world becomes increasingly interconnected, APIs will play a
crucial role in facilitating data sharing, financial transactions, and the creation of
innovative services.

In summary, the research into API monetization in Vietnam's services payment sector is
not only timely but also essential for understanding the dynamics of this evolving
landscape. It is a testament to Vietnam's commitment to embracing digital transformation
and its potential to shape the future of financial services in the country. As the API
economy continues to grow, the collaboration between banks, fintech startups, regulators,
and other stakeholders will be key to unlocking its full potential and ensuring a secure
and thriving ecosystem.
VII. References:
1. https://dichvucong.gov.vn/general/TaiLieuHuongDan-PaymentPlatform%
2. 20API%20Bank%20v5.24.docx
3. ( https://www.alliedmarketresearch.com/api-banking-market)
4. (http://baokiemtoan.vn/ngan-hang-mo-nhieu-tien-ich-nhung-van-thieu-hanh-lang-
phap-ly-de-phat-trien-17379.html)
5. https://www.pwc.com/vn/en/publications/vietnam-publications/payments-2025-
and-beyond.html
6. https://www.thestar.com.my/aseanplus/aseanplus-news/2023/04/09/digital-
payments-grow-in-vietnam-amid-changing-consumer-habits
7. https://www.statista.com/outlook/dmo/fintech/digital-payments/vietnam
8. https://www.statista.com/topics/9797/digital-payments-in-vietnam/