E-Wallet Operator Acquires New Payment Firm for Around PHP 2.2 Billion
The company behind GCash—Globe Fintech Innovations (Mynt)—completes a full acquisition of Electronic Commerce Payments Inc (ECPay) for about $40 million (around PHP 2.2 billion).
Over the years, mobile wallets have become popular in the country, as people have grown accustomed to cashless payments and transactions. In fact, in 2020, it was reported that the number of mobile wallet users in the country reached 24.6 million and that it is predicted to reach as much as 75.5 million Filipinos in 2025.
Aside from e-wallets, Filipinos have also seen the convenience of making online payments—thus paving the rise for electronic payment services in the country. A popular example of that would be Electronic Commerce Payments Inc. (ECPay), an electronic customer purchase and payment system provider in the Philippines.
The Acquisition of ECPay
ECPay was acquired by Globe in 2019 to improve its services in processing bill payments, electronic top-ups, credit card payments, online shopping payments, and other transactions.
Just recently, Globe Telecom struck a deal to sell off 77% of ECPay’s stake to Mynt for $40.7 million (around PHP2.3 billion). Mynt is the company behind GCash, moreover, it is a joint venture between Globe, Ant Group, and Ayala Corporation.
“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,” said Globe Telecom president and CEO Ernest Cu. “Mynt’s acquisition of ECPay will enable more efficient and effective sharing of each other’s strengths and resources, thus creating a seamless and upgraded experience for their customers.”
Commitment to Fintech Innovations
Through this transaction, ECPay will have access to GCash’s platform—which will make it easier for the platform to traverse the ever-evolving digital landscape. More so, this also gives Mynt a strong advantage in the fintech sector as it can make the most out of ECPay and GCash’s features—of providing easier financial access through streamlined processes.
“Mynt’s digital savviness will spill over to ECPay, maximizing its previously untapped potential. GCash, on the other hand, can further differentiate itself from its competition as mobile wallets in various shapes and sizes continue to pop up,” Globe Chief Finance Officer Rizza Maniego-Eala said.
“With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” she added.
What This Means for the Fintech Sector
As of writing, the deal is still under review by relevant regulatory bodies to assess satisfactory closing conditions.
Given how the local fintech sector continues to evolve and improve, Filipinos can expect more convenience in sending and receiving money, as well as conducting day-to-day transactions. As for businesses, this also makes it easier for business owners who too can experience the ease and convenience in making transactions, considering how these platforms will soon be working together.