Uber lands strategic deal in Vietnam’s fintech MoMo

The deal has the potential to increase its foothold in the region, home to 600 million people, and enable it to catch up with its regional rival Grab, which has its own e-wallet service.

In a joint statement, Uber Technologies and Vietnamese financial technology firm MoMo stated that they have signed a strategic deal which allows passengers to pay for Uber’s rides using MoMo’s e-wallet.

The deal marks Uber’s first e-wallet partnership in Southeast Asia, home to 600 million people and could potentially enable it to catch up with its main regional rival 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,” said the duo in a joint statement.

Incidentally, in 2016, a private arm of Standard Chartered PLC along with the Goldman Sachs Group Inc had invested a total of $28 million in MoMo, a “fintech” firm, as a means to tap growing demand for Vietnam’s tech-savvy youth.

“The partnership with Uber will open a seamless and cashless transport experience for the many Vietnamese without credit cards,” said Nguyen Manh Tuong, MoMo’s Chief Operating Officer (COO) in a statement.

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