Mynt, the fintech parent company of e-wallet and superapp GCash, has entered into an agreement with Globe Telecom to buy its 77% stake in Electronic Commerce Payments (ECPay) for 2.31 billion Philippine pesos (US$40.77 million). 

In addition to the acquisition of Globe’s majority stake in company, Mynt will acquire the shares of ECPay’s minority stakeholder Payment One and, once the deal is finalized, will effectively acquire full ownership of the company. 

The deal, subject to regulatory reviews and closing conditions, was announced by Globe through a Philippine Stock Exchange filing earlier this week. Mynt, which runs GCash, is a joint venture between Globe, China-based Alibaba affilitate Ant Group and Philippine conglomerate Ayala Corporation.

“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,” says Ernest Cu, Globe’s president and CEO. 

Mynt’s acquisition of ECPay, Cu adds, will enable “a more efficient and effective sharing of each other’s [GCash and ECPay] strengths and resources, creating a seamless and upgraded experience for their customers”.

The acquisition is seen as a strategic move in the fintech company’s plans to list GCash publicly. Earlier this year, Cu stated that plans were in place to push through with GCash’s initial public offering by either late 2024 or early 2025. 

ECPay, which was acquired by Globe in 2019 in an effort to enhance its distribution network, is the Philippines’ leading electronic payment service provider.

Under the ECPay platform, merchant partners can process bill payments, pin numbers, pre-paid mobile phone top-up loading, e-wallet and cash card reloading, and airline ticket, online shopping and credit card payments within their various outlets.

“With ECPay in Mynt’s capable hands, Globe can better steer its ventures and synergistically grow the entire Globe Group ecosystem,” says Rizza Maniego-Eala, Globe chief finance officer, who adds that, upon closing of the transaction, ECPay will have access to GCash’s platform, an area in which it is a leader. 

“Mynt’s digital savviness will spill over to ECPay, maximizing its previously untapped potential,” she points out. “GCash, on the other hand, can further differentiate itself from its competition as mobile wallets in various shapes and sizes continue to pop up.”