Pi Pay to become Cambodia’s leading payment platform post-merger with SmartLuy
Transaction completion is subject to final regulatory approvals
Smart Axiata Co., Ltd. (“Smart”) has reached an agreement with Pi Pay PLC. (“Pi Pay”) to merge its subsidiary SmartLuy PLC. (“SmartLuy”) with Pi Pay, thus combining both businesses and expecting to positively shape the Kingdom’s digital payment ecosystem. Pi Pay, which was the first-mover in digital app-based payments having gained tremendous traction with merchants and showcasing future potential for more value-added services, will strengthen its operations with SmartLuy’s strong agent network, complemented by Smart’s subscriber portfolio and analytics capabilities.
Following the Approval in Principle from the National Bank of Cambodia, 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 finalized.
The details of the resultant merger, of which Smart will be a strong minority shareholder of Pi Pay, will be publicly announced once all final government approvals are obtained from the relevant bodies, including the National Bank of Cambodia.
This positive development is in line with both companies’ strategy to strengthen their digital businesses as well as to rationalize the market structure for sustainable growth. Both parties believe that this proposed transaction will lead Pi Pay to have new service opportunities, revenue upsides through data monetization and strong combined funding in a hypercompetitive market environment.
Post completion of the transaction, Pi Pay is projected to be equipped with promising resources to become more efficient, more innovative and strong enough to withstand current as well as future challenges in the payments space.
A 2019 report by Mekong Strategic Partners, an investment management firm specialized on the countries of the Greater Mekong Region, who also advised on this transaction, estimates that the total cashless digital payment market in Cambodia will reach 2.21 billion USD in 2019 – a 38 percent rise from 2018. This figure is expected to nearly double this year as more users transact using financial technology.