Grab Set to Discontinue GrabPay Card

Singapore-based ride-hailing giant Grab has announced the discontinuation of its GrabPay Card, an affiliate card program associated with its mobile payments platform. Effective June 1, 2024, the move signals a strategic shift in the company’s focus towards consolidating its offerings and refining key products.

The GrabPay Card program, operating alongside the GrabPay Wallet e-wallet, facilitated users in earning GrabRewards through transactions at select merchant partners, both online and offline. However, citing increased adoption of alternative Grab offerings, particularly the PayLater feature introduced in 2020, Grab has opted to discontinue the program to streamline its efforts and concentrate on enhancing existing products.

In a statement released on its website, Grab confirmed the cessation of new card applications as of April 1. Replacement card requests will be accepted until April 30, with the associated rewards program accessible until May 31. Following this period, users will no longer be able to conduct transactions with their GrabPay Card, either physically or digitally.

This decision follows Grab’s previous announcement in September to discontinue its retail investment products, redirecting its focus towards more financially viable avenues. The company’s emphasis on financial services has yielded significant growth, with revenues from these services witnessing a remarkable 162% year-on-year increase, amounting to $184 million as per the latest full-year results.

The discontinuation of the GrabPay Card may also be influenced by the emergence of GXBank, a Malaysian digital bank resulting from a collaboration between Grab and Singapore’s Singtel. Launched in September, GXBank features its own card program and has swiftly garnered traction, attracting 100,000 depositors within its initial two weeks, with a notable 79% of users transitioning directly from Grab.

As Grab navigates the evolving landscape of digital finance, the company continues to position itself as a major player in Southeast Asia’s fintech sector. By optimising its product portfolio and capitalising on emerging opportunities, Grab aims to maintain its competitive edge and further solidify its presence in the region’s burgeoning digital economy.