Pathao to launch digital wallet

After expanding from bike-taxi ride-hailing system to cars and then to food delivery, popular start-up Pathao is now planning to launch their own digital payments system. In an interview, Pathao's CEO Hussain M Elius said that Pathao has been working on a mobile wallet and will launch the service next month. Through the wallet, riders will be able to top up their app before hopping on a ride or top-up from a driver after a ride. Pathao plans to use its existing driver network as a distribution channel for its digital wallet that will be an added advantage. Pathao forayed into ride-hailing transportation space in 2016 with 'Pathao Rides' that had a fleet of 200 motorbikes. The idea was to use the same fleet to carry passengers in peak-office hours and maintain e-commerce delivery during the off-peak hours. Currently, Pathao provides thousands of daily rides. For Pathao, initial user acquisition for its wallet, up to a certain level, will not be that big of a challenge given the fact that its existing riders will be its users.

It will be interesting to see how the digital wallet competes with pure fintech players like bKash, which got into a strategic partnership with Ant Financial's iPay this year.

Anika Sarker

East West University

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