Every day, 100k+ smart people read our newsletter. You can sign up here.
Hello readers,
In Singapore, digital payments are quite common. I frequently use PayNow, the national peer-to-peer funds transfer service, to send money to my friends. Other e-wallets like GrabPay and FavePay are also available as payment options all around the island, whether you’re buying lunch or paying for your dental treatment.
It’s a different story in Vietnam. E-wallets in the country require users to have a bank account, which means that 70% of Vietnam’s 96 million population can’t reap the benefits of digital payments. And that’s where mobile money could make a difference.
Today we look at,
- How mobile money could shake up Vietnam’s payments sector
- What Startup Bangladesh plans on doing with its latest fund
- Other newsy highlights such as J&T Express’ latest fundraise ahead of a potential IPO and Meesho’s entry into the unicorn club.
PREMIUM SUMMARY
When money goes mobile
In March 2021, the Vietnamese government gave its approval for the country’s telco operators to roll out mobile money in a two-year pilot program – a move that’s heating up the country’s already crowded digital payments landscape.
- Rife with potential: E-wallets in Vietnam must be linked to bank accounts, which means that unbanked consumers can’t use them. Mobile money, on the other hand, can be used to make payments with just a mobile phone account, even by those without smartphones, making it an avenue for folks in nonurban parts of Vietnam to use digital payments.
- Using what you’ve got: The approval comes as good news for Vietnam’s biggest telcos, which need to further capitalize on the boom in fintech, as growth in the traditional telecom sector has peaked. Vietnam has 126 million mobile subscribers, which means telcos already have a huge pool of potential customers who they can get on board the mobile money bandwagon.
- Not just about payments: As competition in the fintech space heats up, players will need to change up their strategies. While going cashless is at present a distant dream for Vietnam, it’s obvious that all providers, fintech and telco operators alike, will need to rely on other financial services such as lending and insurance to stay sustainable.
Read more: Mobile money could give Vietnam’s telcos an edge in the payment war
STARTUP SPOTLIGHT
Funding for Bangladesh’s startups
Digitizing at the count of 1, 2, 3
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
