On Wednesday, Uber and MoMo announced key strategic agreement with Vietnamese financial technology company MoMo to give travelers a chance to pay for their rides using MoMo’s e-wallet services. The organization is Uber’s first partnership with a finance tech organization in Southeast Asia, which is home to 600 million people. It plans to make up for lost time against local competitor Grab, which has its own e-wallet service.
“Vietnam is one of Uber’s fastest-growing Asian markets. MoMo’s five million app users already pay for utility bills, airline tickets and other services with the wallet,” Uber and MoMo said in a joint statement.
Supported by Standard Chartered Bank and Goldman Sachs, MoMo has 5 million clients in Vietnam who utilize its e-wallet to pay service charges, purchase plane tickets, and do web based shopping. A year ago, Goldman Sachs and a private-equity arm of Standard Chartered PLC put a consolidated $28 million in MoMo, offering methods for taking advantage of Vietnam’s young, well informed populace. Brooks Entwistle, Uber’s Chief Business Officer in the Asian Pacific, said he anticipates that the association will enable the two organizations to change Vietnam’s money-dominated economy.
“We see this partnership between Uber and MoMo as a big step in Vietnam’s journey toward digital revolution,” Entwistle said.
Currently, cash payments represent more than 90% of all exchanges in Vietnam. The administration plans to turn around that proportion in the following three years, making 90% of exchanges cashless. Uber says Vietnam is one of their fastest-growing Asian markets. It has managed to penetrate a market with similar strategic objectives.
“The partnership with Uber will open a seamless and cashless transport experience for the many Vietnamese without credit cards,” MoMo CEO Nguyen Manh Tuong said.