NTT DATA Corporation, through the Singapore-based unit NTT DATA Asia Pacific, has agreed to take over Vietnamese fintech firm VietUnion Online Services Corporation, following a 40 per cent stake acquisition in 2011.
Akihiro Ishizuka steps in as chairman of the Vietnamese online payment services provider.
VietUnion, a subsidiary of Saigon Investment Group, has been expanding this business primarily through Payoo, which enables users to make different sorts of bill payments. It has reached a transaction volume of $1 billion per year, said a press release by NTT DATA.
In addition, VietUnion is also providing various software solutions such as a mobile POS system, smart-card solutions for transportation, location-based solutions for billers, and platforms for tuition fee management and collection for 1,700 schools in Ho Chi Minh City.
NTT DATA has been developing the payment business as a core area in Asia Pacific as the group foresees the growth in the region. Along with providing its know-how to help VietUnion strengthen its internal structure as well as establish its position in the local market, NTT DATA commits to introduce Payoo and other payment services of the Vietnamese unit to its global customers through collaborations with other NTT DATA Group companies, including iPay88 in Malaysia, NTT DATA Hong Kong, and NTT DATA Thailand.
The Japanese company secured a foothold in the Vietnamese card and payment business as it acquired 40 per cent of VietUnion in 2011. The capital tie-up was seen as a move to tap the growth of the Vietnam market, where the government and the central bank have been increasing efforts on implementing policies and the infrastructure required for utilising and increasing the use of non-cash payment systems.
Investors, either investment funds or international financial services firms, have taken noticed of fintech companies in Vietnam. Most recently in April, Singapore’s venture-backed mPOS company SoftPay Mobile became the majority stakeholder at Vietnam MPOS Technology, who has attracted Vietnam’s top taxi group Mai Linh and Lazada as customers in the country.
Earlier in March, e-wallet MoMo, a product developed by M_Service, snapped $28 million funding from Standard Chartered Private Equity and Goldman Sachs, including a follow-on investment by the US investment banker.
Last year, Unitus Impact announced financing for Mobivi’s employee benefits programme, which was rumoured to be an over $20 million series C round. In addition, DEALSTREETASIA has also learned that a Vietnamese chain of pawn shops bagged an eight-digit funding.