German FinTech firm Wirecard is partnering with Southeast Asia’s “super app” Grab to facilitate payments and transfers, Wirecard announced on Wednesday (March 11).
Wirecard will process payments and transfers using GrabPay’s digital wallet and will initially target markets in Malaysia, the Philippines and Singapore.
“We are proud to partner with Grab, a Southeast Asian icon,” said Georg von Waldenfels, executive vice president of group business development at Wirecard. “Together, we aim to continue disrupting the payment, tech and mobility industries with innovative solutions that can improve the lives of millions.”
A Wirecard consumer survey indicated that more than 90 percent of Southeast Asian shoppers have purchased goods online and in-store using some type of digital payment. On average, people worldwide choose to pay digitally with an electronic wallet (eWallet) about 25 percent of the time. In Southeast Asia, however, 44 percent of shoppers surveyed pay using an electronic wallet.
Wirecard’s digital financial commerce platform will handle GrabPay’s card transactions. The partnership aims to bring digital payments to more stores while promoting the use of mobile transactions.
“We are thrilled to partner with Wirecard as we progress on our journey of building a cashless economy for millions of businesses across Southeast Asia,” said Reuben Lai, senior managing director of Grab Financial Group. “Wirecard’s innovative mobile payments solutions will not only complement our GrabPay e-wallet platform but also offer businesses and consumers the opportunity to transact with greater security, convenience and flexibility.”
GrabPay’s electronic wallet is recognized by more than 600,000 businesses and is among the most widely-used digital payment methods in Southeast Asia.
Wirecard was founded in 1999 and is headquartered in Munich, Germany. Grab is a Singapore-based ridesharing company that moved into food delivery and digital payments. It was founded in 2012. It is the region's first “decacorn” — a startup with a valuation of over $10 billion.
Per recent reports, investors are asking SoftBank to help align Southeast Asia’s ride-hailing unicorns Grab and Gojek. Gojek and Grab started discussing a possible merger in February, which would create one of the world’s most highly valued startups. Talks between the two competitors have been ongoing for two years.