Two payment startups based in Vietnam, Vimo and mPOS, have agreed to merge in an effort to scale. The company will rebranded as NextPay, as reported by Bloomberg.

Vimo Technology is a mobile wallet provider, while Vietnam mPOS Technology develops portable point-of-sale technology. Together the two will be combined and rebranded as NextPay Holdings.

NextPay Holdings will have Nguyen Huu Tuat, who is the CEO of mPOS, as its CEO. Nguyen Hoa Binh, who founded the two Hanoi-based startups, will be NextPay’s chairman.

In addition to the rebranding, NextPay is said to be in talks with investors to raise about US$30 million and anticipates closing the round soon. The capital will be a boost for the company as it plans an expansion into Myanmar and Indonesia in 2020.

“MPOS’s business model is quite similar to Square in the U.S., in that any merchant can accept payments easily, and Vimo is a mobile wallet similar to Alipay,’’ Tuat said as quoted by Bloomberg.

“By merging these two businesses, we provide a one-stop payment solution for merchants.’’

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The combined company is going to have a presence in 11 cities across Vietnam, with more than 35,000 acceptance points that are comprised of 70 per cent tech-savvy, smartphone users population.