Smartluy Plc, a subsidiary of a Malaysian-owned Smart Axiata Co Ltd, a leading telecommunications service provider in Cambodia, and cashless payment platform Pi Pay Plc on Monday received approval from the National Bank of Cambodia (NBC) to merge.

Earlier this year, both companies opted for a voluntary disclosure of the merger that once completed, is expected to “lead as well as shape the Kingdom’s promising payment ecosystem”.

A joint statement said: “NBC’s swift approval process is certainly a big boost towards further cementing Pi Pay’s leadership position in the digital payment landscape in Cambodia post-merger completion.”

SmartLuy employees will join the Pi Pay team at the completion of the merger, while SmartLuy customers, agents as well as vendors will migrate to Pi Pay.

Existing SmartLuy customers will be able to transfer their wallet balances to new Pi Pay accounts before the integration phase following the merger completes.

Additional information on customer migration will be provided via multiple channels as it becomes available, said the statement.

Pi Pay CEO Tomas Pokorny said the merger will provide Pi Pay with an array of new opportunities and resources to leverage on.

“With Smart, Pi Pay will be better equipped to support the government’s agenda of reducing barriers to digitalisation and widen digital payments adoption among consumers as well as merchants, including among small retail businesses,” he said.

Smart Axiata CEO Thomas Hundt said: “This positive development has been envisioned in line with the overarching strategy of strengthening our digital business portfolio while introducing various innovative, lifestyle and entertainment value propositions for our millions of customers.

“All SmartLuy customers, agents and vendors will be kept informed during this transition period. I look forward to successfully completing this transaction very soon and harness the immense potential synergies in the promotion of finance inclusion as well as a digital society in the Kingdom,” he said.

Currently, Smart Axiata serves eight million subscribers under its ‘Smart’ brand, and is part of Malaysian telecommunications conglomerate Axiata Group Bhd. Its network coverage is 99 per cent of the Kingdom’s population.

Launched in 2017, Pi Pay has quickly expanded its user base to nearly 300,000, logging more than $350 million in transaction value and boasting 4,500 merchant locations across the Kingdom.