Globe Telecom, Inc., a leading digital platform in the Philippines with major interests in telecommunications, financial technology, virtual healthcare, digital marketing solutions, data insights, corporate venture building, and climate technology, entered into an agreement with Globe Fintech Innovations, Inc. (Mynt), the parent company of GCash, for the sale of its 77% stake in Electronic Commerce Payments, Inc. (ECPay) for PHP2.31Bn.
ECPay’s minority stakeholder, Payment One, Inc., is likewise a party to the agreement, effectively making the transaction a full acquisition of ECPay by Mynt.
Incorporated in 2001, ECPay, is the leading electronic payment service provider in the Philippines. It was acquired by Globe in 2019 to enhance its distribution network. The ECPay Platform enables merchant partners to process bills payments, electronic prepaid mobile phone top-up loading, electronic pins, e-wallet & cash card reloading, airline ticket payments, online shopping payments, and credit card payments in their various outlets.
Ernest L. Cu, President and Chief Executive Officer of Globe shared that, “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. 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.”
Upon closing of the transaction, ECPay will have access to GCash’s platform, enabling ECPay to better traverse the ever-evolving digital landscape to which GCash is a leader in. As for Mynt, it is expected to better harmonize the capabilities of both ECPay and GCash. The acquisition will help GCash provide best-in-class services in the fintech space and further democratize financial access.
“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. With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” added Globe’s Chief Finance Officer, Rizza Maniego-Eala.
The deal is currently undergoing thorough reviews. Completion is expected upon receipt of approvals from the relevant regulatory bodies and satisfaction of closing conditions.