Grab’s payments arm reaches tipping point on path to profits

With a critical mass of users now to its name, Singapore's Grab has begun to scale back the subsidies that its payments app gives to merchants.

It is a major turning point for the ride-hailing app company's payments division and reassuring for its investors who are hungry for evidence that it is on the path towards profitability.

Grab’s growing platform also makes higher-margin financial services a viable business for the firm. GrabPay is building out its insurance and lending services as it gathers financial licenses across Southeast Asia.

“We have reached a scale where we can monetise our...