Grab expands financial service footprint in Vietnamese market

Grab has reported that a quarter of the population get familiar with its services, with 190,000 drivers partnering with the firm, following five years of its operation in Vietnam.

The Grab subsidiary looks to provide financial services with regard to consumer lending, e-payment, and insurance.

Grab has struck the local market by offering its partnering drivers installment payments for cellphones with preferential or even zero per cent interest rates which are allegedly against the rules set by the State Bank of Vietnam. The firm has managed to lend partnering drivers via its own platform not those connected to the banking system, thus leading to unfair competition with financial rivals.

Despite gaining no permission from the State Bank of Vietnam for a payment intermediary, Grab shook up the e-payment market by acquiring a 3.523 per cent stake in fintech company Moca, before legally launching its payment platform GrabPay by Moca. Acting as an e-wallet application, GrabPay by Moca enables Grab users to make payments for electricity and water bills, prepaid cellphone cards, shopping, and food.

In a drastic move, Grab reportedly suggested that the Vietnamese Government allow payments through e-wallets, even though they are not entitled to be connected to bank cards.

Grab made its debut in the Vietnamese market in 2014 with the initial launch of ride-hailing services dedicated to motorbikes and cars with up to nine seats. It has piloted its services in five major localities, including Hanoi, Ho Chi Minh city, Danang, Quang Ninh, and Khanh Hoa.

Grab has reported that a quarter of the population get familiar with its services, with 190,000 drivers partnering with the firm, following five years of its operation in Vietnam.

After ousting its closest rival Uber from the Southeast Asian market, Grab has spread its wings into other sectors such as logistics, food delivery, and hotel reservation, while eyeing a daring plan with GrabTV app.