Industry Trend Analysis - Mobile Money Partnership Enables Customer Retention - 10 JULY 2017
BMI View: The partnership between Grab and Telenor ' s mobile wallet Wave Money enables both players to refine their services and retain customers. It forms part of Grab's strategy t o develop its payments arm Grab Pay as another source of revenue and improve its in-app ecosystem in the face of competition from Uber. It will see Telenor's mobile payment service strengthened as it competes with other mobile operators to gain 4G subscribers.
Ride-hailing company Grab has partnered with Telenor-backed Wave Money in Myanmar, three months after having launched in the country. The deal will see Wave Money's digital wallet integrate with GrabPay to allow customers to use its services to pay for rides. This forms part of Grab's strategy to diversify its services and adapt to local customs and preferences as competition with Uber, its main rival in Southeast Asia (SEA), intensifies.
One of the key themes we highlighted for 2016 was that ride-haling services would shift to a period of more intense competition and regulatory scrutiny. We have largely seen this playing out in SEA, with regulators in Thailand and Vietnam adopting a stricter stance towards ride-sharing apps and competition rising between Uber and Grab across seven markets in SEA.
|3G/4G Take-Up To Fuel Mobile Money Growth|
|Myanmar - Mobile Market|
|e/f = BMI estimate/forecast. Source: BMI, MPT, operators, MMSIS|