Ant Financial Invests in Vietnam E-Wallet
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Ant is expected to have significant influence and provide technical expertise to the e-wallet, created locally by a small start-up.
Chinese digital finance giant Ant Financial has acquired a «sizeable» stake in Vietnamese e-wallet eMonkey, «Reuters» reported on Thursday.
The acquisition, which is below 50 percent, wasn’t publicly reported because of fears over anti-China sentiment in Vietnam, the report said, citing people familiar with the matter.
Vietnam’s consumer market has immense potential, with a population of almost 93 million and a surging middle class, high internet and smartphone penetration, and a fast-growing liking for e-commerce. The competitive digital payments space in the country is led by Standard Chartered e-wallet Momo.
While Ant has an office in the country, eMonkey already has the necessary operating licenses and has established partnerships with financial institutions and telecoms, making market penetration easier, the news wire said.
Ant, a fintech affiliate of e-commerce giant Alibaba, on Thursday appointed company veteran Simon Hu as its new chief executive officer.
The online finance giant controlled by billionaire Jack Ma started out in 2004 as a way for Alibaba Group to pay for goods. It has since evolved into a $150 billion behemoth covering micro-lending, insurance, credit-scoring, and money-market funds. Ant has a domestic user base of 900 million.
Questions & Answers
Q.Why was the acquisition of eMonkey by Ant Financial not publicly announced?
Why was the acquisition of eMonkey by Ant Financial not publicly announced?
The acquisition was not publicly reported due to concerns about anti-China sentiment in Vietnam. This information came from people familiar with the matter, according to the report.
Q.What benefits does eMonkey offer Ant Financial in the Vietnamese market?
What benefits does eMonkey offer Ant Financial in the Vietnamese market?
eMonkey already possesses the necessary operating licenses and has established partnerships with financial institutions and telecoms. This makes market penetration easier for Ant Financial in Vietnam.
Q.What is Ant Financial's main goal in Vietnam's e-wallet market?
What is Ant Financial's main goal in Vietnam's e-wallet market?
Ant Financial is expected to provide technical expertise to eMonkey and use its existing licenses and partnerships. This aims to tap into Vietnam's large consumer market with its growing middle class and high internet penetration.
Q.How significant is Ant Financial's investment in eMonkey?
How significant is Ant Financial's investment in eMonkey?
Ant Financial has acquired a sizeable stake in eMonkey, according to the report. However, the exact percentage of the acquisition is below 50 percent.
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