Grab partners with Singtel to apply for a Singapore digital banking license, with Grab owning a 60% share in the joint entity. (Eileen Yu / ZDNet)
Grab’s joint venture with Singtel digital bankinghas been proposed as a major step towards Grab achieving a banking license in Singapore. According to Grab, the proposed deal with Singtel will enable Grab to achieve a banking license in Singapore and tap Southeast Asia’s significant market potential, including in Southeast Asia’s largest economy. This move will help Grab compete against local rivals such as GoJek and Uber. The Grab-Singtel joint venture will also allow Grab to expand its services to include financial services, opening up a new market for Grab and Singtel.
What is a Grab?
Grab, the mobile transportation startup based in Southeast Asia and backed by US ride-hailing giant Uber, said on Thursday it has partnered with Singapore Telecommunications (Singtel) to seek a license to operate a digital bank in the city-state, where Grab is the market leader. Grab, Asia’s leading ride-hailing company, will continue to operate its e-wallet service in Singapore while adding the ability to pay for services using Singtel’s mobile wallet app, Singtel Money. Grab is a wholly owned subsidiary of Groupe Lease Corporation, which in turn owns 80% of the capital of Groupe Lease Corporation SA, the holding company that holds the majority of the shares in Lease Corp.
How does Grab partner with Singtel to apply for a Singapore digital banking license?
As of November 2015, Grab and Singtel have launched GrabPay, a new mobile payments platform in Singapore. GrabPay allows merchants to accept payments from Grab riders and extend their services to the GrabPay platform through integration. With the launch of a new online banking platform, Grab, the Singaporean taxi-hailing app, decided to apply for a digital banking license to enable customers to conduct their banking transactions securely online. The Grab app is currently Singapore’s only digital banking platform that has received a digital banking license. Customers can pay via the Grab app by swiping their bank account or credit card or using GrabPay and GrabCash to send money to friends or family. Once the Grab Bank is launched, customers can transfer money between the two accounts through the Grab app.
Why does Grab take a 60% share in the joint entity Singtel?
Grab is a local mobile commerce platform that allows its customers to shop online and offline. While Grab is based in Singapore, it plans to expand outside the country. Its CEO, Jonathan Teo, wants a 50% market share in Southeast Asia within five years. Grab has had to make a few strategic decisions to achieve that goal. One of them was to partner with a company like Singtel that could help Grab build its brand. Grab took a 60 percent stake in Singtel because it will allow Grab to leverage Singapore’s network and infrastructure to grow into new markets.
In conclusion, the joint venture will provide payment services to Grab’s customers within the GrabPay platform. With the GrabPay app, merchants can accept payments from Grab customers, and customers will pay directly through GrabPay. In addition, Grab will also have a partnership with Singtel to offer digital banking services to Grab customers. This partnership will allow Grab customers to use their existing SingTel mobile number to register for and use GrabPay and SingTel digital banking services. In this case, Grab will also set up a bank account for the joint venture.
1. How does GrabPay work?
GrabPay is a mobile payment solution that allows you to pay for things in Singapore by tapping your phone. You can pay for a taxi, a coffee, or a meal. It’s as simple as that.
2. What are the key benefits of GrabPay?
You don’t need to have any bank accounts to use GrabPay. It’s as easy as paying with a credit card. It’s as easy as paying with a debit card. It’s as easy as paying with a debit card.
3. What is Grab’s vision for GrabPay?
We aim to be the most convenient way to pay for things in Singapore. We want to make it as easy for consumers to use our services. We want to make it as easy for merchants to accept our payments. We want to make it easy for consumers to get their money out of their Grab wallet.
4. What is Grab’s target market?
The GrabPay app will be available on both iOS and Android devices. We want to make it as easy as possible for consumers to pay for things in Singapore. We want to make it as easy for merchants to accept our payments. We want to make it easy for consumers to get their money out of their Grab wallet.