The Philippine Long Distance Telephone Company (PLDT) and Germany’s Rocket Internet have agreed to set up a global joint venture for mobile and online payment services with a focus on emerging markets.
The companies hope the JV, in which they will…
The Philippine Long Distance Telephone Company (PLDT) and Germany’s Rocket Internet have agreed to set up a global joint venture for mobile and online payment services with a focus on emerging markets.
The companies hope the JV, in which they will each have a 50% stake, will “drive the massive adoption of online and mobile payment solutions in emerging markets”, according to a joint statement.
The Philippine incumbent and the Berlin-based start-up accelerator first formed a strategic partnership last August to boost the development of mobile and online payment technologies and services in emerging markets.
At the time, PLDT agreed to pay €330m (US$442m) for a 10% stake in Rocket, which provides a platform for the development of online businesses outside the US and China. The telco now holds a 6.5% stake in Rocket, which staged a €6.5bn (US$8.2bn) IPO on the Frankfurt Stock Exchange last October.
PLDT will supply the JV with the intellectual property, platforms and business operations of its mobile-first payment platform Smart e-Money (SMI), which it claims owns and manages the Philippines’ largest branchless banking network.
Meanwhile, Rocket will contribute its interests in two payment platforms aimed at fast-growing e-commerce businesses in Europe: Paymill and Payleven.
Subject to approval by the relevant authorities, the deal is expected to close this quarter.
PLDT CEO Napoleon Nazareno said the transaction aligns with its strategy of “becoming a driving force in the digital economy”, noting that it is designed to maximise synergies between e-commerce and mobile-first payment services.
According to PLDT, SMI has more than five million active customers, 300,000 trade accounts and handled transactions totalling about €3.4bn in 2013.
Rocket, founded in 2007, claims to have a network of companies active in more than 100 countries.
