Smart Axiata Co Ltd’s subsidiary SmartLuy will soon be merging with the country’s leading payment platform, Pi Pay Plc.
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Both Smart and Pi Pay have established a strong presence as leading organisations in their respective fields.
The merger is expected to strengthen Pi Pay’s operations by using SmartLuy’s strong agent network and complemented by Smart’s subscriber portfolio and analytics capabilities. This is expected to go hand in hand with the digital payment platform’s tremendous traction with merchants that already showcasing the future potential for more value-added services.
Both companies have opted for an early voluntary disclosure to provide transparency as several matters, including the integration of both companies, are in the process of being finalised. This decision was made following the Approval of Principle from the National Bank of Cambodia (NBC).
According to a joint statement by both companies, the merger is in line with both companies’ strategy to strengthen their digital businesses as well as to rationalise to the market a structure for sustainable growth. Both Smart and Pi Pay believes that the proposed transaction will lead the digital payment platform to have new service opportunities as well as revenue upsides through data monetisation as well as strong combined funding in a very competitive environment.
Pi Pay is also expected to be equipped with promising resources to become more efficient as well more innovative to face both current and future challenges in the payments space when the merger completes.
One of the advisers on the transaction, Mekong Strategic Partners, an investment management firm estimates that the total cashless digital payment market in the Kingdom will reach $2.21 billion in 2019 which is a 38 percent rise from the year prior. The figure is expected to double in 2020 as more users transact using financial technology.
As a result of the merger, Smart will be a strong minority shareholder of Pi Pay and the announcement will be publicly made known once all final government approvals are obtained from relevant authorities including the NBC.