Globe Telecom Inc. said Monday it is unloading its controlling stake in Electronic Commerce Payments Inc., or ECPay, to Gcash’s parent company Globe Fintech Innovations Inc. (Mynt) for P2.31 billion.
Globe, the telecom arm of the Ayala Group, said that Payment One Inc., the minority shareholder in ECPay, also agreed to sell its stake to Mynt, which puts the enterprise value of one of the country’s leading electronic payment system around P3 billion. Globe owns 77 percent of ECPay.
The acquisition will help GCash provide best-in-class services in the fintech space and further democratize financial access. 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 deal has been submitted to regulators, particularly the Philippine Competition Commission, for clearance.
ECPay, incorporated in 2001 and acquired by Globe in 2019 to enhance its distribution network, has over 570 biller and portfolio partners and more than 490,000 over-the-counter and over 3,000 digital payment touchpoint channels nationwide.
Its payment 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, said the timing was right to acquire ECPay given the strategic synergies following GCash’s aggressive expansion of its financial services. “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,” he added.
