VieON experiencing payments disruptions with 45 per cent of customers after losing MoMo
OTT platform VieON was left in the lurch by after a one-sided contract termination by MoMo.
MoMo cancelled its payment contract with VieON
From September 3, users of VieON would not be able to perform payments via MoMo because M_Service JSC – the operator of the e-wallet – has cancelled the partnership without giving a reasonable explanation, according to the over-the-top (OTT) platform.
Specifically, M_Service on July 15 sent a notification of contract termination to VieON, citing the reason that they had “temporarily no demand for trading in the company’s products and services.” The decision put VieON on the backfoot, unable to handle the sudden interruption.
“About 45 per cent of our customers have selected Momo for their payments. That means they cannot extend their packages on VieON due to the interruption,” said a VieON representative.
The VieON hotline is nowadays constantly busy as customers are constantly calling to complain about the payment disruption. Currently, VieON is asking them to use alternative payment methods such as VNPAY, credit card, or bank transfer.
The company has been in discussion with MoMo to clarify the actual reason of the termination and find a way to maintain their co-operation. On July 22, representing VieON, Duane Morris sent a document to express the company's goodwill yet firmly reject the e-wallet platform’s intention of halting the contract. Later on, the two sides held an online meeting to hammer out more acceptable terms but the meeting was inconclusive.
Afterwards, M_Service sent an email to VieON, confirming that the company was still intent on cancelling the contract. Duane Morris sent a second document, maintaining VieOn's stance. However, on September 3, M-Service officially halted providing payment services to VieON.
After many unsuccessful negotiations, VieON on September 11 officially filed a lawsuit against M_Service requesting compensation.