Globe Telecom Inc. said Monday it sold its controlling stake in Electronic Commerce Payments Inc. (ECPay) to unit Mynt which operates GCash.
The telecom unit of the Ayala Group said it signed an agreement with Globe Fintech Innovations Inc. (Mynt) for the sale of its 77-percent stake in ECPay for P2.31 billion.
ECPay’s minority stakeholder, Payment One Inc., is also a party to the agreement, effectively making the transaction a full acquisition of ECPay by Mynt.
Globe acquired ECPay 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 and 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. 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,” Globe president and chief executive Ernest Cu said.
The companies said that on the closing of the transaction, ECPay would have access to GCash’s platform, enabling it to better traverse the ever-evolving digital landscape, where GCash is a leader. Mynt 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,” Globe chief finance officer Rizza Maniego-Eala said.