Globe Fintech Innovations (Mynt), the parent company of GCash, is acquiring Electronic Commerce Payments Inc (ECPay) for P2.31 billion, Globe Telecom announced on Monday.
Globe said it has agreed to sell its 77% stake in ECPay to Mynt while Payment One, a minority stakeholder, is also selling its stake, making the deal a full acquisition.
ECPay, an e-payment service provider in the Philippines, was acquired by Globe in 2019 to enhance its distribution network in the country.
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.
“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 Ernest Cu, president and CEO of Globe. “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, according to the announcement.
“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.
BusinessNewsAsia