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gojek acquires WePay to expand its e-wallet business into Vietnam: Report

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Indonesian ride-hailing giant gojek has acquired a majority stake in Vietnamese payments startup WePay, as per a DealStreetAsia report.

The size of the deal remain undisclosed.

According to the report, the acquisition will help gojek in securing an e-wallet license to operate in the region.

When contacted by e27, a gojek spokesperson said: “We are always looking for opportunities to partner with innovative Vietnamese businesses as a means to enhance experience for users,”

As per the DealStreetAsia report, following the deal, WePay has switched its headquarters from Thanh Xuan district to Cau Giay district, where the gojek office is located.

Subsequently, gojek Vietnam’s Manager Phung Tuan Duc has been appointed as CEO of WePay.

WePay is an online payments services provider, which claims to have a partnership with 24 local banks, 1,000 merchants and four international card issuers.

After the launch of its subsidiary GoViet’s in 2018, gojek has established a substantial presence in the region across a range of verticals, including motorbike-hailing (GoBike), food delivery (GoFood), and general delivery (GoSend).

After its recent funding from Facebook and PayPal, gojek has been focusing on supporting the growth of the digital economy in Southeast Asia, particularly in payments and financial services.

Its recent acquisitions include Coins.ph, Moka, Kartuku, Pluang, Midtrans and PonselPay.

In Vietnam, although cash on delivery has been the most popular mode of purchase, the trend is shifting thanks to COVID-19. Since the onset of the pandemic, digital payments have been evolving rapidly and a culture of contactless payments is evolving.

This article was first published on e27, on Sep. 14, 2020.