One of the country’s leading mobile operators Smart Axiata announced yesterday that its digital service SmartLuy has signed an agreement to merge with a local mobile payment platform Pi Pay, looking to attract more merchants and customers to its platform.
The details of the agreement, which would require approval from the Cambodian government and the National Bank of Cambodia, are being disclosed.
“As Cambodia’s leading mobile telecommunications operator, it is natural for us to consider options to strengthen our digital business portfolio after having introduced various innovative, lifestyle and entertainment value propositions for our customers. We are delighted to have found a partner with similar drive in promoting digital finance inclusion in the Kingdom, and we look forward to complete this transaction soon and see the fruits of this successful merger, “ said Thomas Hundt, CEO of Smart Axiata.
According to Pi Pay, under the agreement, all SmartLuy’s business would merge into Pi Pay and its features would be integrated into the Pi Pay app, users will then have access to new services.
The most immediate change is the upcoming launch of a new Pi Pay app at the end of January, which will offer features such as cashback and coupons.
“As Cambodian fintech market is quickly evolving, crowded and scattered across various business verticals, market consolidations are welcomed and unifying notions that will further support financial inclusion in the country. Pi Pay, with addition of SmartLuy’s agent network, and support from smart Axiata, will continue to push support the industry focus on partnerships, synergies and the adoption of digital payments,“ said Tomas Pokorny, CEO of Pi Pay.
According to a 2019 report by Mekong Strategic Partners, Cambodia’s cashless digital payment market has reached 2.21 billion USD in 2019, a 38 percent rise from 2018. The figure is expected to increase nearly double the following year.
Pi Pay has close to 300,000 users, over $350 million in transaction value and more than 4,500 merchant locations across Cambodia, while Smart Axiata currently serves 8 million subscribers which quickly transforms itself into a digital lifestyle brand.