SINGAPORE • Two of Vietnam’s payments start-ups are merging to add scale in the market where cashless payments are booming.
Vimo Technology JSC, a mobile wallet provider, and Vietnam mPOS Technology JSC, which develops portable point-of-sale technology, will be combined and rebranded as NextPay Holdings.
Nguyen Huu Tuat, CEO of mPOS, will become CEO of the combined entity. Nguyen Hoa Binh, who founded the two Hanoi based start-ups, will be NextPay’s chairman.
NextPay is in talks with investors to raise about US$30 million (RM124.8 million) and anticipates closing the round soon, Huu Tuat said.
The capital will help the company as it plans an expansion into Myanmar and Indonesia in 2020.
“mPOS’ business model is quite similar to Square in the US, in that any merchant can accept payments easily, and Vimo is a mobile wallet similar to Alipay,” Huu Tuat said.
Prime Minister Nguyen Xuan Phuc is trying to usher the country into the modern era of digital payments, reducing the amount of US dollars in circulation and establishing the dominance of the Vietnamese dong.
That would mean encouraging Vietnamese households to adopt credit cards, bank transfers and digital payments rather than carrying around piles of cash and bullion.
The combined company will have a presence in 11 cities across Vietnam, with more than 35,000 acceptance points. — Bloomberg