MoMo, Western Union partner to boost VN remittances

MoMo, a Vietnamese fintech company, has partnered with Western Union to allow customers to receive money transfers directly on the MoMo app. Thuan Do, a senior vice president at MoMo, stated that many overseas Vietnamese need to send small amounts of money to their families in Vietnam. According to the World Bank, Vietnam received US$19 billion in remittances in 2022, ranking it tenth globally. Customers can search for Western Union on the MoMo app and input their Money Transfer Control Number to transfer funds into their bank accounts held with any of MoMo's 50 partner banks. MoMo does not charge additional fees for this service, and it aims to build a financial ecosystem for its 31 million users, including small businesses and financial service providers. According to FLCQuangbinh, MoMo has disclosed funding of around US$433 million.

MoMo's value has exceeded $2 billion, according to a representative. The company plans to use its new funding to expand financial services to its 31 million customers 

and provide digital transformation solutions for small and micro businesses in Vietnam. It also aims to promote investment in Vietnamese companies and strengthen services in rural areas. The strong commitment of global investors to MoMo is encouraging for the firm, said Co-CEO Nguyen Manh Tuong. The percentage of Fintech service users in Vietnam has increased from 16% in 2017 to 56% in 2021, and the country's digital ecosystem is estimated to reach $50 billion, increasing to $100 billion by 2025, according to McKinsey & Company Vietnam.

According to TABInsights, MoMo, with its advanced online loans service, is the only Vietnamese company to make the list of top 20 leading global platforms, ranking seventh. The research unit evaluated the platforms using a balanced scorecard that covered various aspects, including customer capabilities, coverage, service scope, usage and engagement, financial performance, strategy, and leadership.

MoMo started in 2010 as an e-wallet, becoming one of Vietnam's first. Since 2018, it has worked with banks and financial institutions to increase access to financial services for more Vietnamese people. MoMo has raised funds from international investors multiple times, with its latest funding round in December 2021 led by Japan's Mizuho Bank for $200 million in a series E round.

MoMo has partnered with more than 70 financial institutions, including banks and insurance companies from both Vietnam and other countries. The platform works directly with 31 banks, Napas (National Payment Service Vietnam), and many credit card issuers. MoMo offers a variety of financial products that are user-friendly and meet the personal financial needs of its users. These include "buy now pay later" options, loan payments, insurance purchases, online savings, bond investments, and cross-border remittance services.

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