GCash surge to continue this year
MANILA, Philippines — Globe Fintech Innovations Inc. (Mynt) expects demand for its mobile wallet GCash to remain strong this year following an unprecedented growth last year, but breaking even or achieving profitability is still seen happening in a few years’ time.
“We’re very optimistic that GCash’s momentum will continue. It’s a very well-loved app,” Globe president and CEO and Mynt chairman of the board Ernest Cu said.
“Net income or break even, I think we’re still a few years away from that obviously. However, we are seeing very good traction when you have scale and as the public accepts the monetization model, I think we will see great results. The value proposition of GCash is truly there, the habits are ingrained in the public, and we’re seeing how well we can do with other monetization models,” he said.
GCash is coming from a record 2020 wherein more Filipinos turned to digital services due to the COVID-19 pandemic.
GCash recorded gross transaction value of over P1 trillion last year, driven by services like online payments, bank cash-in, and sending money.
The mobile wallet has over 33 million registered users, empowering them with digital financial tools and services such as transacting physically and online, purchasing airtime load, opening deposit accounts, saving and investing in money market funds, and acquiring insurance products.
Mynt expects the digital shift to remain even as the economy opens up as users now see the convenience and relevance of digital products.
“GCash has reached a tipping point where it has now become a very big part of the Filipino lifestyle in terms of how they pay for things, how they move money around, and it has done quite a bit for financial inclusion as well,” Cu said.
Mynt last month raised over $175 million in fresh capital from New York-based investment firm Bow Wave and its existing shareholders in multiple tranches, with post-money valuation of the final tranches at close to $1 billion.
Bow Wave’s investment in Mynt translated to a minority equity interest. Other owners of Mynt are Globe, Ayala Corp. and Ant Financial, an affiliate of Jack Ma’s Alibaba Group.
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