Vingroup unit licensed to offer e-wallet services
In this article (5)
Vingroup’s loyalty program VinID has been permitted to operate e-wallet services, furthering the private conglomerate’s foray into cashless payment.
VinID acquired local payment firm People Care Jsc in May. It also owns People Care’s e-wallet MonPay, and has replaced the management board of the payment firm with its own executives since the end of last year.
Vingroup established VinID in July last year with a charter capital of VND3 trillion ($129.4 million), in which Vingroup owns 80 percent.
The license for VinID Pay is among the 31 certifications that the central bank has issued for payment intermediary companies.
Economists have said that the potential for cashless payments in Vietnam is huge due to a growing middle class and rapidly improving telecom infrastructure. The government targets to make 90 percent of all transactions cashless by 2020.
However, for now, the reliance on cash remains huge. About 80 percent of Vietnamese prefer to use cash for daily transactions
Questions & Answers
Q.What is VinID's primary business after receiving this license?
What is VinID's primary business after receiving this license?
VinID is now permitted to operate e-wallet services, which expands Vingroup's involvement in cashless payment solutions. This move follows their acquisition of People Care Jsc and its e-wallet MonPay.
Q.How did VinID come to own an e-wallet service?
How did VinID come to own an e-wallet service?
VinID acquired People Care Jsc in May, which included their e-wallet MonPay. VinID then replaced the payment firm's management board with its own executives by the end of last year.
Q.What is the government's target for cashless transactions in Vietnam?
What is the government's target for cashless transactions in Vietnam?
The Vietnamese government aims for 90 percent of all transactions to be cashless by 2020. This target highlights the potential for growth in electronic payments despite current cash reliance.
Q.What percentage of VinID does Vingroup own?
What percentage of VinID does Vingroup own?
Vingroup established VinID in July last year with a charter capital of VND3 trillion, and it owns 80 percent of the company. This shows Vingroup's significant investment in the loyalty programme.
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