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Exclusive: Ant Financial takes stake in Vietnam's eMonkey: sources

Thursday, December 19, 2019, 22:26 GMT+7
Exclusive: Ant Financial takes stake in Vietnam's eMonkey: sources
The logo of Ant Financial Services Group, Alibaba's financial affiliate, is pictured at its headquarters in Hangzhou, Zhejiang province, China January 24, 2018. Photo: Reuters

JAKARTA -- China’s Ant Financial, a fintech affiliate of e-commerce giant Alibaba Group Holding Ltd, has quietly acquired a sizable stake in a Vietnamese e-wallet eMonkey, people familiar with the matter said.

The move, negotiated over the summer, is not being announced due to concerns that anti-China sentiment in Vietnam could result in possible pushback, three people with knowledge of the situation said.

The strategic investment, Ant’s eight international payments deal, will allow the firm to gain entry to Vietnam’s booming market of nearly 100 million people, a quarter of whom are under 25, and where e-commerce growth is among the highest in the region.

Vietnam’s rapid growth is drawing global technology giants, but Chinese firms have to operate cautiously given tensions with Beijing which often fuel anti-Chinese sentiment despite deep economic ties between the two countries.

Ant will not control more than 50% of eMonkey, but is expected to have significant influence and provide technical expertise to the e-wallet, which was created by small Vietnamese fintech firm M-Pay Trade, one of the sources told Reuters.

The source did not disclose the size of the deal.

Despite having its own office in Vietnam, Ant chose to invest in eMonkey because it had already obtained all its operating licences from the State Bank of Vietnam (SBV), the person said.

M-Pay additionally holds partnerships with most of the country’s largest banks and telecoms.

Its eMonkey competes against intensifying competition in Vietnam’s digital payments industry, with the market being led by Standard Chartered-backed local e-wallet Momo.

M-Pay and Ant Financial did not respond to requests for immediate comment.

The sources declined to be named, as the deal remains confidential.

Reuters

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