Globe Fintech Innovations, Inc (Mynt), the parent company of the most popular e-wallet in the Philippines GCash, is acquiring Electronic Commerce Payments Inc (ECPay) for about $40 million, according to a disclosure Monday.
In a statement, Globe Telecom, the parent company of Mynt, said it has agreed to sell its 77% stake ECPay to GCash while Payment One Inc, a minority stakeholder, is also divesting its stake, making the deal a full acquisition by Mynt.
Incorporated in 2001, ECPay, is one of the leading electronic payment service providers 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, share:
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.
Globe’s Chief Finance Officer Rizza Maniego-Eala said:
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.
The deal is currently undergoing thorough reviews. Completion is expected upon receipt of approvals from the relevant regulatory bodies and satisfaction of closing conditions.