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.