MoMo, a mobile money service operated by M_Service JSC, said that it has hit one million with regard to the number of its users. According to Manh Tuong Nguyen, Vice President at M Service, the app is growing beyond expectations compared with the previous year, with a growth rate of 30-50% per month. The company also claims that the app now stands as the most downloaded app in the Apple store in Vietnam.
Launched in June 2014, MoMo is a mobile wallet service offered in partnership with Vinaphone. It allows users to pay online and make person-to-person money transfers within a few seconds. The MoMo app allows customers to make transactions such as buy game credits, top-ups and bill payments.
With new mobile payments apps such as Apple Pay and Samsung Pay entering the market, competition is also increasing for the players to sustain, but the company behind the MoMo app is confident about its competitiveness. It says it understands the requirement of the Vietnamese. Through the study habits of domestic users, the company noticed that QR Code technology is easy and user-friendly for the Vietnamese.
Nguyen told VnExpress, “Currently both Samsung Pay and Apple Pay are using NFC technology as the basis for payments,” he said. “However, there are problems that arise with NFC technology, including the phone battery consumption; not to mention that NFC payments aren’t user-friendly. Through the study of domestic users’ habits, we noticed that QR code technology is very convenient and simple for Vietnamese people.”
Standard Chartered Bank has collaborated with MoMo to launch Straight2Bank Wallet payments in Vietnam, according to a press release. Straight2Bank Wallet enables corporations, governments and development organizations to transact with both banked and unbanked individuals cashlessly, according to the announcement.
In the press release, M_Service’s Executive Vice Chairman Nguyen Ba Diep said, “MoMo is honored to partner with Standard Chartered to provide financial services to both banked and unbanked clients in Vietnam, especially in rural areas. The cooperation between MoMo and the bank is a fresh move to promote non-cash payments in the country, which is encouraged by the government. In the partnership, MoMo works as the bank’s extended hands to provide financial services through our extensive agent network, and sending money to anyone in Vietnam can be as simple as sending a text message.”
Nirukt Sapru, Standard Chartered Vietnam CEO, said in the press release, “The Vietnamese government is seeking to boost non-cash payments as the country is shifting away from a predominantly cash-based economy. As a leading international bank here, we are working with our partners to help develop infrastructure for the use of cashless payment methods. The solution we launched today with MoMo is tailor-made for our clients with great convenience and security to effectively minimize the risks they face when using cash. Our clients can use it anytime they want. We continue to be at the forefront of innovation and providing our clients with solutions that help them run their business in a cost-effective and efficient manner.”
M_Service was established in 2007. It was licensed by the State Bank of Vietnam in November 2012 to provide a mobile money service branded as MoMo. MoMo provides a new financial service based on mobile applications. The company has more than 3,000 outlets in 38 provinces and cities nationwide.