Kakao Pay has $200 million investment from Ant Financial
Ant Financial to invest $200 million in Kakao Pay
Ant Financial, a Chinese-based financial service giant, will invest $200 million in South Korea’s Kakao Pay. This is according to the joint statement released by these two firms on Tuesday last week.
The investment on this South Korean-based mobile payment company is part of a broader global journey by Ant Financial. This deal was struck barely a month after another $880 million deal for MoneyGram International. News broadcasted last month by CNN revealed that Ant Financial will buy MoneyGram, a global money transfer company based in the United States but send money within the US and to other countries, for $880 million.
In April last year, Ant Financial attracted around $60 billion valuations but managed to raise $4.5 billion after a fundraising. Since then, the company has been using its financial power to expand its services in China and across the world. Its target is to offer Initial Public Offer which the management says could later this year.
A Chinese financial service corporation and a subsidiary corporation under Alibaba Group Holding Limited, a global conglomerate founded by Chinese billionaire Jack Ma, Ant Financial tops the online payments industry in China and some countries in Asia, but it has been facing endless competition from local rival companies such as Tencent Holdings Limited’s Wechat-Pay.
These two firms said in a joint statement that the investment is part of a bigger strategic partnership which is aimed at connecting Ant Financial’s 450 million users with Kakao Pay’s 14 million who are currently on the company’s platform.
"South Korea is an important market for our financial service company as we plan to reach global customers, and we see numerous opportunities in the market for growth in mobile payments and innovative services," the President of Ant Financial International Douglas Feagin said.
Kakao Pay, best known for Kakao Talk, has more than 48 million users. The company has also invested in Paytm, an Indian-based mobile payment, and e-commerce website. In Thailand, the company has invested in Ascend Money, a financial technology firm.
In another news
Chinese giant Ant Financial Buys U.S. firm MoneyGram for $880 Million
News broadcasted recently by CNN reveals that Ant Financial will buy MoneyGram for $880 Million. The later is a global money transfer company based in the United States but send money within the US and to other countries.
Ant Financial, a Chinese financial services giant is a subsidiary corporation under Alibaba Group Holding Limited, a global conglomerate founded by Chinese billionaire Jack Ma.
Immediately the purchase deal was announced last week on Thursday, MoneyGram stock increased by 10%.
The purchase deal is expected to be the first test on how serious the recently inaugurated US Trump is about halting or restricting money transfers to Mexico.
Trump has already signed a series of executive orders authorizing the construction of a multi-billion physical wall on the US-Mexico border. Trump had said during his presidential campaign that he would consider halting or levying huge amounts of taxes should Mexico decline to pay for the wall.