Mizuho Bank, a subsidiary of Mizuho Financial Group, recently announced its investment in M-Service, the largest player in Vietnam’s digital payment sector. Mizuho acquired approximately 7.5% shares of the company on 20 December 2021.
M-Service holds nearly 50% share of Vietnam’s mobile payment market. Additionally, the company operates Vietnam’s famous MoMo e-wallet. Founded in 2007, M-Service has transformed into a digital payment business through the adoption of the latest technologies. In the last few years, the company has seen a sharp surge in demand for e-wallets.
In addition to the recent funding, Mizuho Bank is planning to facilitate M-Service through professional expertise to help the company in its growth. Mizuho aims to enhance its cooperation with Vietcombank.
“Since its founding in 2007 primarily as a payment service business for mobile phone charges, M-Service has transformed into a fully digital payment business. The company has built by far the largest business base within Vietnam’s payment market by pioneering an expansive affiliated merchant network and a wide range of use cases, securing its position as Vietnam’s leading super-app. It also provides services that are facilitating the digitalization of finance and the expansion of financial markets in Vietnam through connections with many major local financial institutions,” Mizuho noted.
In addition to Mizuho, several other leading investors invested in the Vietnamese payment company. In fact, M-Service saw a major jump in its valuation after the latest investment round. According to a report published by Bloomberg, M-Service is now valued at $2 billion.
Vietnam’s Financial Sector
Vietnam is one of the fastest-growing economies in Asia. The country witnessed a major digital transformation in the last few years. According to Mizuho, the latest initiative will advance Vietnam’s financial inclusion.
“At the same time, we will positively contribute to further advancing Vietnam’s financial inclusion and retail finance industry by expanding our collaboration with M-Service and by enhancing our ongoing cooperation with Vietcombank,” Mizuho highlighted.
