GCash lines up more investment tools

MANILA, Philippines — E-wallet giant GCash plans to maximize its share in AB Capital Securities Inc. (ABCSI) to offer Filipinos more investment opportunities in the capital market through the app.

Officials of GCash’s parent, Globe Fintech Innovations Inc. (Mynt), told The STAR that the e-wallet is gearing up its trading function GStocks following Mynt’s acquisition of a 16-percent stake in ABCSI

GStocks is GCash’s trading platform where users can buy, sell and trade shares in more than 280 companies, with brokerage services from ABCSI.

“Mynt, the holding company of GCash, now owns 16 percent of AB Capital Securities. With this investment, GCash aims to reach more Filipinos by enabling access to the stock market through GStocks in closer collaboration with ABCSI,” the Mynt executives said.

In 2023, Mynt signed a definitive agreement with ABCSI for the acquisition of up to a 50-percent share in ABCSI. As of 2024, Mynt said it has closed two tranches of investments in ABCSI and currently owns 16 percent of the company.

ABCSI is chaired by Globe Telecom Inc. independent director Antonio Jose Periquet Jr., who is also a director in other listed firms such as ABS-CBN Corp., Semirara Mining and Power Corp. and Universal Robina Corp.

China Bank Capital Corp. managing director Juan Paolo Colet said GCash’s decision to invest in ABCSI could entice more stock brokers to partner with e-wallets to scale up their reach.

However, Colet said e-wallets like GCash can only serve small-scale investors, and that the bulk of capital placements would still be made through traditional channels.

“GCash has a strong potential to be a leading retail platform for investing in local stocks. It is not hard to imagine the day when many stock brokerages will set up shop in these super apps GCash and Maya to cater to retail customers,” Colet told The STAR.

“The bulk of order flows into the PSE are unlikely to be made through a super app anytime in the near future. Institutional and high net worth investors will still prefer the usual brokerage setup,” he added.

Currently, ABCSI works with Mynt for brokering services on GCash, providing the e-wallet with research content and trading capacity for GStocks and its customers.

ABCSI is known to listed firms and public investors as one of the most reputable brokerages in the Philippines, generating billions of turnover value annually.