Ant Financial Services, operator of Alipay, has announced a strategic partnership with Digital Money Myanmar, which owns and operates mobile financial services platform Wave Money.
As part of the deal, Ant Financial will invest US$73.5M in the firm, said a press release.
Ant Group’s stake in Wave Money will come by way of a new share issuance, which is subject to certain conditions, including regulatory approval.
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The strategic partnership is aimed at boosting Wave Money’s technological capabilities and utilise Ant Financial’s expertise in mobile payment and digital financial services to better address the needs of users in Myanmar.
“Myanmar is ready for mass adoption of digital payments with a connected population and high smartphone penetration. This partnership will be transformative for Wave Money and Myanmar,” said CEO Brad Jones.
Launched in October 2018, Wave Money is a joint venture between Telenor, Yoma Bank and Singapore Exchange-listed Yoma Strategic Holdings. The firm provides mobile financial services through a nationwide network of more than 57,000 agents or what it calls ‘Wave Shops’ in urban and rural areas, covering approximately 89 per cent of the region of Myanmar.
In 2019, Wave Money’s transfer volume claims to have more than tripled year-on-year reaching US$4.3 billion. More than 21 million people have used its platform for services such as remittances, utility payments, airtime top-ups and digital payments.
“Myanmar’s population is still massively underserved by formal banking institutions with only a quarter of people having a bank account. Ant Group brings a wealth of expertise in mobile payment and financial services. The COVID-19 situation is accelerating the trend towards a cashless society and drives the growth of ecommerce, and we expect this strategic partnership to massively boost Wave Money’s capabilities to support these trends,” said Melvyn Pun, CEO, Yoma Strategic.
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Image Credit: Ant Financial
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