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 has partnered with Singtel, the largest telco in Singapore, to apply for a banking license. This partnership will allow Grab to provide financial services to its platform’s drivers, passengers, merchants, retailers, and anyone else. Grab will be the main operator of this joint venture, and Singtel will be the majority owner. Grab’s founder, Anthony Tan, believes that this partnership will make Grab one of the biggest players in Singapore’s mobile payments.
What is the meaning of Grab partners with Singtel?
SingTel’s partnership with Grab was successful because the two companies shared an understanding of customers and the need to meet their needs. This allowed Grab to make strategic decisions based on SingTel’s data, while SingTel provided Grab with a wider pool of consumers to expand into. The partnership enabled SingTel to penetrate new markets for both companies, a goal both companies share. The association also created an opportunity to provide services to customers, including free mobile data for passengers.
How does Grab partner with Singtel work?
Grab works directly with Singapore’s largest telco, Singtel, and allows its customers to access Grab’s services through a specially-designed app or mobile phone number, allowing people to quickly grab any ride on the platform. Grab is available in more than 200 cities worldwide. Singtel is a leading telecommunications company in Southeast Asia. The company operates a network of mobile operators and provides fixed-line phone services. With over 940 million customers, Singtel serves approximately 70% of the country’s population. Their customers include both business and residential customers. In 2017, the company reported revenue of S$22 billion.
How Grab partners with Singtel to apply for a Singapore digital banking license, with Grab owning a 60% share in the joint entity.?
Singaporean telco Singtel Group has partnered with ride-hailing company Grab to offer digital banking services under the GrabBank brand. Singtel and Grab said the new venture would give the ride-hailing firm access to a mobile payment platform and credit card payments, allowing Grab users to purchase using their Grab app. They will also enable drivers and passengers to withdraw money from GrabCash, Grab’s prepaid cashless debit card, from the Grab app.
Why Grab is partnering with Singtel?
Grab wants to become the leading mobile platform for Singaporeans. To do that, it needs a network to connect people and places, but its lack of a presence in Singapore has made that challenging. Grab is partnering with Singtel to gain access to more than 1 million Singaporeans. This could mean more business for Grab as more people will have access to its platform. Grab founder Peter Lim said that his company is partnering with Singtel to enhance Grab’s product offerings. The partnership will allow Grab to access Singtel’s strong network of point-of-sale terminals and vice versa. This will increase the number of transactions that Grab can carry out through its platform.
Conclusion
In conclusion, Grab has partnered strategically with Singtel, the largest telecommunications company in Southeast Asia, to build a mobile financial services ecosystem. This collaboration will enable Grab to operate in key geographies across Southeast Asia. Grab aims to offer consumers and businesses an integrated suite of financial services, such as insurance, credit cards, and money transfers, in the Philippines and Indonesia, by leveraging Singtel’s mobile network and Singtel’s extensive retail distribution network. Grab also offers GrabPay-powered insurance services for drivers and passengers and a GrabPay-powered car rental service. In March 2017, the Monetary Authority of Singapore granted Grab a banking license.
FAQs
1. What is Grab?
Grab is a mobile app developer based in Singapore that focuses on creating a platform for users to access their services on the go.
2. Why did Grab partner with Singtel?
Grab partnered with Singtel because Singtel is the largest telecommunications company in Singapore. This partnership allows Grab to expand its reach into the region and provide better customer service.
3. What will GrabPay do?
GrabPay will provide a payment gateway for Singtel customers.
4. How is Grab involved in the payments industry?
Grab has been in the payments industry since it was founded.
