Japan’s Mizuho Bank is going to acquire a 7.5 percent stake in the M-Service company. This is to leverage the Vietnamese company’s retail business. The bank is expected to invest up to $170 million by the end of 2021. Reports indicated that Mizuho Bank has been lagging behind its peers in overseas investment. With their latest acquisition, the bank is aiming to actively tap into Asian growth areas.
M-Service is the leading digital payment company in the Socialist Republic of Vietnam. They have a share of over 50percent of Vietnam’s mobile payment market. Also, they operate the MoMo brand. And that is used by over 20 million people in Vietnam. It was founded in 2007. And they aim to turn MoMo into a superapp. This gives users access to multiple services by putting the use of its more than 50 percent market share. Mizuho invested in Vietcombank in 2011. Also, they have investment in M-service recently. The Japanese bank also aims to become a bigger player in Southeast Asia’s financial sector.
The ASEAN region a parallel economic and population growth, and financial infrastructure of the region is in a stage of development. Financial inclusion has become a social issue. The bank has also built the largest business base within Vietnam’s payment market. This is by pioneering an expansive affiliated merchant network.