Smart and Pi Pay have received approval from the National Bank of Cambodia to merge Smart’s subsidiary SmartLuy with Pi Pay.
The companies expect this merger to lead and shape the Kingdom’s payment ecosystem.
“As the first-mover in digital app-based payments in the Kingdom, having gained tremendous traction with merchants and showcasing future potential for more value-added services, this to-be-completed merger will certainly provide Pi Pay with an array of new opportunities and resources to leverage on, said Tomas Pokorny, CEO of Pi Pay.
The transaction will be completed after meeting statutory requirements from other relevant government authorities. As part of the full integration of both companies, employees of SmartLuy will join Pi Pay and SmartLuy customers, agents as well as vendors will migrate to Pi Pay.
“With Smart, Pi Pay will be better equipped to support the Royal Government’s agenda of reducing barriers to digitalization and widen digital payments adoption among consumers as well as merchants, including among small retail businesses,” Mr. Pokorny added.
Existing SmartLuy customers will be able to move their wallet balances to new Pi Pay accounts before the integration process is fully completed. Further announcements on customer migration will be provided later.
“This positive development has been envisioned in line with the overarching strategy of strengthening our digital business portfolio while introducing various innovative, lifestyle and entertainment value propositions for our millions of customers. All SmartLuy customers, agents and vendors will be kept informed during this transition period. I look forward to successfully completing this transaction very soon and harness the immense potential synergies in the promotion of finance inclusion as well as a digital society in the Kingdom,” said Thomas Hundt, CEO of Smart Axiata.
Post-merger, Pi Pay (of which Smart Axiata will be a strong minority shareholder) will have a wider set of revenue opportunities, stronger data monetization synergies, robust payment infrastructure and increased resources to withstand current as well as future challenges in the current hypercompetitive market environment.
In addition, Pi Pay is expected to become more efficient and innovative to build on the app’s strengths, utilizing SmartLuy’s strong agent network.