GCash operator now owns ECPay

MANILA, Philippines — Mobile giant Globe Telecom Inc. has sold its majority share in e-commerce platform Electronic Commerce Payments Inc. (ECPay) to the operator of e-wallet leader GCash for P2.31 billion.

In a regulatory filing, Globe said that it signed an agreement with Globe Fintech Innovations Inc. (Mynt) for the sale of its 77 percent stake in ECPay for P2.31 billion.

Globe added that Payment One Inc., a minority shareholder in ECPay, signed on the agreement, making the transaction a full acquisition of ECPay by Mynt.

Once the deal is completed, ECPay will gain access to GCash’s platform, enabling it to broaden its reach in the digital landscape. GCash, for its part, will augment its dominance in the e-wallet market, as it expands its offering of financial technology services.

Globe president and CEO Ernest Cu believes ECPay has a lot to gain now that it will be operated by the team behind GCash. He said both ECPay and Mynt can work on improving their products given that Filipinos are becoming adjusted to a digital lifestyle.

“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,” Cu said.

“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 said.

Globe chief finance officer Rizza Maniego-Eala said that GCash stands to benefit from the deal, too, as it can solidify its position as the undisputed leader in the e-wallet market.

“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,” Eala said.

The transaction, according to Globe, is undergoing various reviews. Likewise, Globe is seeking regulatory approval to proceed with the sale.

In 2019, Globe acquired ECPay to widen its distribution network, as the platform gives merchant partners the capability to process bill payments, load top-ups, among others.

GCash serves as the leading finance app in the Philippines with a portfolio of financial services ranging from cash transfer to instant loans.