Phl gets first crack at Rocket Internet

MANILA, Philippines - The Philippines will get first crack among all emerging markets of the mobile and online payment technologies and services to be developed by Philippine Long Distance Telephone Co. (PLDT) and Berlin-based Rocket Internet AG, the chairman of the country’s leading telecommunications operator said.

On the sidelines of the Asean Business Awards 2014 Tuesday night, PLDT chairman Manuel V. Pangilinan said his recent trip to Berlin bore fruit, resulting to “a good business meeting with Rocket Internet.”

 “Quite a part of investment we’re making there would be an agreement to joint venture the online payment system of Rocket Internet using the Smart Money platform,” Pangilinan said.

 “We will start with the Philippines, then we should be able to export the service and the technology as soon as we take root here,” he added.

Pangilinan said there is a possibility the new technologies and services will be introduced in the country this year.

PLDT made its biggest overseas investment amounting to $446 million for a 10 percent stake in Rocket Internet last month.

PLDT and Rocket also entered into a global strategic partnership to develop mobile and online payment solutions in emerging markets.

The partnership is seen “to combine PLDT’s world-class mobile money expertise and resources with Rocket’s global platform to drive future value enhancing growth opportunities.”

PLDT’s 10 percent stake in Rocket Internet, however, was reduced to 8.6 percent late last month after the entry of United Internet AG which invested about $582.7 million (435 million euros) for a 10.7 percent stake.

Rocket Internet, which started in 2007, provides a platform for the rapid creation and scaling of consumer Internet businesses outside the US and China. Its most prominent brands include leading Southeast Asian e-Commerce businesses Zalora and Lazada.

It currently has more than 20,000 employees across its network of companies which operate in more than 100 countries in five continents.

PLDT’s mobile money subsidiary, Smart eMoney, meanwhile, co-developed and operates a global mobile payments platform of MasterCard, and is also now working with Citibank and Visa o develop new innovative financial services.