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South east Asia, mobile payments face shakeout as the market booms

HO CHI MINH CITY/HONG KONG/SINGAPORE (Reuters) – Just next to the Ho Chi Minh City, the financial district, the two dozen or so street vendors’ stalls, a display of colorful ads for the e-wallets supported by the private equity firm Warburg Pincus, ride-hailing firm Suit, as well as Singapore’s sovereign wealth fund, GIC, among others.

A mobile e-payment logo on the Suit is on display at a street food stall in Ho Chi Minh city, Vietnam, October 15, 2019. (REUTERS photo/Yen, binh Duong

Among them, the orchestra were selling everything from crab soup to the Vietnamese Banh My sandwiches can accept payment for the majority of Vietnam, 28 and a variety of e-wallets that one can also make money by using their mobile phones.

The fund, which is hoping to take advantage of Vietnam’s plan to become a cashless economy by 2027, will compete fiercely to gain a lot of users in order to help them to make a profit, is a battle for market share, acquired in the South-east Asia.

Not all of them will be the best choice. All the regions are busy in the mobile payments industry is starting to dwindle, and with each national market forecast is that it is only a two-mass, e-wallets, according to consulting firm Oliver Wyman.

“The e-wallets to spend a lot of money in attracting customers and retaining them, in order to use the portfolio in their daily lives,” said Duncan Wood, head of Oliver Wyman’s Asia-Pacific’s retail and business banking practice.

“When you’ve got so many of them out there, about who’s got the deepest pockets,” he said.

South-east Asia, at least 150, e-wallet, license, owners, and companies such as Grabbing, Go-Thee, Tencent Holdings, Ant Financial, Singapore Telecom international, AirAsia and many fintech companies are fighting for dominance.

Many of you will have the money. Pak plans to invest $500 million in the Vietnam business, to pay for a area of interest. They turned to the Vision of the Fund, and GIC’s investment of $300 million in e-wallet, VNPAY’s parent company in July, and an e-wallet Momo raised $100 million from Warburg Pincus in January, according to the news publication, DealStreetAsia.

Some use the money to build to scale, others will buy it, if they are in the race to take a dominant position in the mobile payments market, estimated by Nomura to be, to grow seven-fold to $109 billion a year by 2025.

MERGER MANIA

Softbank-backed grip in talks to join the Indonesian digital payments business, the FOCUS, and with Ant Financial-non-Dane, both of which are in Indonesia, the world’s top five e-wallets, in order to bulk up, and ahead of arch-rival Gojek, the sources said.

In Vietnam, e-wallet, Vimo combined with the payment processor, mPOS, and renamed it the NextPay in June and the kick off of a $30 million fundraising round, and is pursuing an ambitious growth plan.

“We expect to be about Vietnam, and will win 50% of the market, with over 300,000 acceptance points by 2023, from over 60,000 merchants now, NextPay’s CEO, Nguyen Hu Tuat said, while noting that it is to get customers to change their habits was a real challenge.

Street vendors in Ho Chi Minh City echoed this view, and in spite of the efforts made by the government to change behavior.

Some of the portfolios, including the partnership between a local company, Moca, and Seize the offer, buyers can save up to 30% when they are making use of their purses, stallholders said.

“I want to be in line with the government’s cashless plan, although I’m not very fond of it, so I can offer morning, with cash in the afternoon-out” as a jew, features a restaurant, he said, when Reuters visited, her noodle stall.

DIFFERENT STRATEGIES

The attraction of the users is essential if the tipping point is just around the corner.

“The E-wallet in the consolidation of the regional and local level, it is likely to be as full-grown products, and consumers will migrate to those who make the most of the services,” said Phil, Pomford, a asia-pacific general manager for the fintech company FIS.

“One is likely to play, it would mean that one of the major global and/or regional, to super-apps to consolidate services in the South-East, south-east Asia.”

The region’s major players, including the ride to come-turned-super apps for the Grab-and-Go, S a, bet is still the main form of payment, shall be binding on consumers in their networks and offer higher-margin services, a model that Alibaba and Tencent as a pioneer in China.

“One of the reasons why our funds business has seen such success is because we have a very clear strategy for the development of the largest of the merchant, the network, whether offline, online, or on-demand,” take two’s chief executive, Ming Si, told Reuters.

Others have looked at the use of the e-wallet as an add-on to their existing business. Users of AirAsia’s BigPay wallet, you can earn AirAsia travel rewards, and with the help of the portfolio, which, they hope, also, that it may be a mainstream form of payment.

Tencent and Alibaba and its affiliates have in the first place, be aimed at Chinese tourists and their wallets, in South east Asia, and have invested in the portfolios of nearly every market in the region.

Suit, saying it was the only digital payment service provider in South-east Asia, with access to e-money licenses in six large economies, so it is in the middle, with a regional approach.

Some observers are still skeptical about it.

“A lot of the e-wallets the business model seems to be: 1) get a lot of customers and their data. 2) a question mark. 3) it is very profitable,” said Dmitry that is what we got as a partner at a VC firm Percent, which has invested in several payment processing companies, but stayed away from the cards.

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The Go-S is not worried about the competition from the other portfolios of well-established companies, he said Adding Haryopratomo, the chief executive of the Go-to Pay for the company’s payment platform.

“The payment service provider that connects to the managing director of the bank, we are able to provide a sufficient margin. And if you think about it, the competition, and the threat to the banks, then, do you think that the pie is fixed,” he said Haryopratomo.

“But in Indonesia, the cake is actually getting bigger.”

Reporting Phuong Nguyen-in Ho Chi Minh City, Alun, John, Hong Kong, and Anshuman Daga in Singapore; Additional reporting by Aradhana Aravindan in Singapore. Editing by Lincoln Feast.

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