Southeast Asian super app Grab will no longer offer its Moca e-wallet services in Vietnam starting July 1 this year, a move it attributed to its bid to achieve “sustainable growth.”
In a statement on Friday, Moca would focus its resources on other payment intermediary services with better growth potential in the Vietnamese market. It did not reveal what other services it would provide.
Grab users will still be able to process cashless payments on the super app through its e-wallet partners, ZaloPay and MoMo, and linked bank cards, it added.
“This decision was made after a very careful evaluation. With the restructuring of our service portfolio, we will focus on areas where we can deliver better value to our users while driving the company’s growth in an efficient and sustainable manner,” said Moca CEO Nguyen Xuan Viet Binh in a statement.
Moca, which was acquired by Grab in 2018, was once among the three most used e-wallets in Vietnam. However, it has lost its sheen due to intense competition in the local market. In Q3 2024, MoMo was the largest e-wallet used by 49% of respondents in a Decision Lab survey. It was followed by VNG’s ZaloPay (18%) and ShopeePay (11%).
According to a report by Fiin Group, the number of active e-wallets in the country is expected to hit 50 million by the end of this year, marking a 39% increase from 2023.
To win the market, players are developing their own ecosystems. MoMo recently partnered with a local brokerage firm to offer investment products on its app. ShopeePay leverages its group’s leading position in e-commerce, while ZaloPay is tapping small and medium enterprises (SMEs) by leveraging its business management platform.
Visa has chosen MoMo, ZaloPay and VNPAY as its partners in Vietnam to allow local SMEs to use its cards on their online platforms.
The termination of its e-wallet services is among several initiatives by Grab to enhance its operational efficiency. The Nasdaq-listed tech giant booked its first quarterly profit in Q4 2023 at $11 million.
That said, Grab continues to invest in financial services across the region. DealStreetAsia reported earlier this year that it made a capital infusion of S$145.10 million ($109 million) into its digital banking subsidiary GXS Bank. In Indonesia, it has invested in digital lender Bank Allo, lender Bank Fama, and wealth tech startup Bareksa.
It has also collaborated with digital currency payments firm Triple-A to enable GrabPay users in Singapore to replenish their e-wallets using digital tokens.
