Why did Alibaba acquire Vietnam’s electronic wallet?

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Vì sao Alibaba thâu tóm ví điện tử của Việt Nam? - Ảnh 1.

Ant Financial has purchased a large volume of shares, holds up to 50% of the shares in eMonkey and is expected to have a significant influence on this e-wallet. The deal to allow Ant Financial to participate in the Vietnamese payment market by eMonkey has a license to operate by the State Bank of Vietnam, Business Insider said.

The move also demonstrates Ant Financial’s determination to expand into new markets. Besides, access to Vietnam market also brings some special values.

Together with Tencent, Ant Financial has dominated the Chinese payment market – about 90%, so entering new markets is a way for the business to continue growing. In addition to seeking to invest in other technology services to expand its reach, Ant Financial has boosted its ability to accept payments worldwide for Chinese customers to use when abroad. Ant Financial also works with local wallets to easily reach new users and increase payment volume. Cooperation with eMonkey in Vietnam can meet both of these goals.

The payment market in Southeast Asia has great potential and joining the Vietnamese market can help Ant Financial take advantage of this. The total volume of digital payment transactions in Southeast Asia is expected to increase from USD 600 billion in 2019 to USD 1.1 trillion in 2025. Of which, electronic wallets will account for USD 22 billion in 2019 and reach USD 114 billion. by 2025. These figures are from Google, Temasek and Bain & Company reports.

Vietnam is forecast to be the third largest Internet economy (including industries, e-commerce, tourism and online media) in Southeast Asia, after Indonesia and Thailand, with a value up. to USD 43 billion by 2025. Therefore, Vietnam is really an important goal of Ant Financial.

However, Business Insider judges that Ant Financial’s expansion into Vietnam will face strong competition. Grab is also targeting this market. Southeast Asia-based shipping service provider considers Vietnam as one of the four largest markets and has partnered with a local payment company to provide in-app fintech services.

Moreover, speaking to Reuters in August 2019, Mr. Ming Maa, Grab Chairman announced that he plans to invest “several hundred million USD” in Vietnam. Therefore, Ant Financial will need to be willing to invest heavily to entice customers if it wants to put eMonkey at the top of the mobile payment field in Vietnam.

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Source : Trí Thức Trẻ