Philippines’ MANILA- The owner of the most popular e-wallet, GCash, has purchased the majority of shares in Electronic Commerce Payments Inc. (ECPay) from mobile juggernaut Globe Telecom Inc. for P2.31 billion.
Globe stated in a regulatory filing that it and Globe Fintech Innovations Inc. (Mynt) had executed a contract for the sale of Globe’s 77 percent ownership in ECPay for P2.31 billion.
Globe noted that Payment One Inc., a small ECPay stakeholder, signed the agreement, completing ECPay’s takeover by Mynt.
After the purchase is finished, ECPay will have access to GCash’s platform, allowing it to increase the scope of its presence online. For its part, GCash will increase its market leadership in the e-wallet space as it broadens the range of financial technology services it provides.
Ernest Cu, president and chief executive officer of Globe, thinks ECPay will benefit much from working with the GCash management team. Given that Filipinos are increasingly accustomed to a digital lifestyle, he claimed that ECPay and Mynt can both improve their goods.
“GCash’s meteoric rise to become one of the top fintech brands and the aggressive expansion of its financial services have created a perfect environment for strategic synergies with ECPay,” added Cu.
“Mynt’s acquisition of ECPay will enable a more efficient and effective sharing of strengths and resources, thus creating a seamless and upgraded experience for customers,” he claimed.
According to Globe Chief Financial Officer Rizza Maniego-Eala, GCash will gain from the transaction as well because it will be able to maintain its position as the undisputed market leader for e-wallets.
“ECPay will benefit from Mynt’s digital know-how, enhancing its unrealized potential. On the other hand, as more mobile wallets of all sizes and designs continue to appear, GCash can further set itself apart from its rivals, according to Eala.
The deal is being reviewed in several ways, according to Globe. Globe is also looking for regulatory approval to move forward with the sale.
Globe purchased ECPay in 2019 to expand its distribution network because the platform enables merchant partners to conduct bill payments and load top-ups, among other things.
With a variety of financial services that includes everything from rapid loans to cash transfers, GCash is the top finance app in the Philippines.
