Hanoi, Vietnam, June 8, 2009—IFC, a member of the World Bank Group, and Vina Paynet Network Joint Stock Company today signed an investment agreement to help expand speedy and reliable electronic payment services to millions of households and individuals throughout Vietnam.
Under the agreement, IFC will provide about 1.2 million US dollars (about 21 billion Vietnamese dong) in new equity to Paynet, one of the leading retail payment processors in Vietnam.
“This investment is crucial in supporting our company’s strategic growth,” said Ngo Thanh Son, Paynet’s Chairman. “As the retail payment processing sector is just emerging in Vietnam and there is a huge need for international know-how and expertise, IFC’s global presence and knowledge of different business models and technological trends are greatly valued.”
IFC’s investment will be used primarily to strengthen Paynet’s back-office infrastructure by improving back-up and redundancy systems. It also will be used to expand the retail payment networks.
“We appreciate IFC’s commitment to helping develop Vietnam’s sustainable financial infrastructure, by first developing a private credit bureau and now investing in a private, retail-payment processing company,” said Nguyen Dong Tien, Deputy Governor of the State Bank of Vietnam. “We hope the demonstration of a successful model of an alternative retail-payment platform will promote private sector attention to lift this sector.”
IFC and Paynet also plan to enter into an advisory services agreement under which IFC will provide strategic and technical implementation advice to Paynet.
“We are pleased to make this long-term investment in Paynet and expect large development impacts from this project,” said Karin Finkelston, IFC Director for East Asia and Pacific. “IFC’s investment in retail electronic payment infrastructure will help reduce cash in circulation, increase the level of trade, and open doors for the proliferation of new services like money transfer, e-commerce, microfinance, and consumer credit.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org.
About Paynet
Vina Payment Network Joint Stock Company is a leading payment processor and distributor of electronic payment products in Vietnam. Formally set up in 2006, Paynet has developed a national network of over 2,600 retail agents throughout the country to provide the unbanked and underbanked—people with little or no access to the more common electronic payment instruments (credit and debit cards)—with the ability to make speedy electronic payments. For more information, visit
www.paynet.vn.
