Merger and acquisition activities are rising in the digital payments space in Vietnam

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In Vietnam, an increasing number of consumers have started using e-wallets to pay for buying products and goods. The global pandemic has primarily driven the shift to digital payment in the country. More and more consumers have started using e-commerce websites to purchase products, including groceries.

This growing adoption of e-commerce platforms has also resulted in the increasing use of e-wallets in Vietnam. For instance, ZaloPay, the Vietnamese e-wallet service, recorded a strong growth of 300% from January 2020 to August 2020. Similarly, MoMo, one of the leading payments startups in Vietnam, reached 25 million registered users as of June 2021, up from 10 million users at the end of 2019. This growing adoption of e-wallet services in the country has resulted in an increasing number of investment and merger and acquisition activities in the digital payments space in Vietnam.

MoMo acquires Pique in Vietnam

In June 2021, MoMo made its first acquisition with the purchase of Pique, the local artificial intelligence (AI) startup. The acquisition of Pique is a strategic move from MoMo, to implement AI. Notably, MoMo completed the acquisition of Pique through MoMo Innovation Ventures, which the e-wallet provider launched in 2021.

The MoMo Innovation Ventures was launched by the e-wallet provider when the startup completed its Series D round in January 2021. In total, the e-wallet provider has raised more than US$232 million since its inception. PayNXT360 expects the acquisition of Pique to help MoMo in optimizing the experience of its 25 million users, providing support for tens of thousands of partners, and promoting digital transformation of small and medium-sized enterprises (SMEs).

The acquisition will help MoMo in acquiring all of the intellectual property of Pique. Additionally, MoMo is also hiring the data science and engineering team of Pique, including the AI startup’s founder. The acquisition of Pique comes when the e-wallet provider is facing intense competition in the country as Vietnam has become the financial technology background for regional competitors who are looking for a slice of the booming digital economy in Vietnam.

Pique’s expected role in the growth of MoMo in Vietnam

It is anticipated that Pique’s AI platform can help MoMo personalize the services based on each user’s needs. Notably, before the acquisition, Pique helped its clients increase the number of visitors searching for their products, thereby boosting the purchase rate and order value through appropriate product recommendations.

With MoMo looking to move beyond the pureplay digital wallet business model to become profitable, the e-wallet provider is expected to develop its super app based on the strong artificial intelligence capabilities created by Pique.