PCC approves P2.31 billion sale of ECPay to GCash parent

MANILA, Philippines — E-wallet leader GCash is set to become stronger by capacity and reach after its operator received approval to buy out payment platform Electronic Commerce Payments Inc. (ECPay).

Telco-to-tech giant Globe Telecom Inc. yesterday said the Philippine Competition Commission (PCC) has authorized its P2.31-billion sale of ECPay to GCash parent Globe Fintech Innovation Inc. (Mynt).

Globe said the transaction is expected to be wrapped up as soon as approvals from the remaining regulators are issued and closing conditions as negotiated are satisfied.

The PCC has given its blessing to the buyout subject to ECPay and Mynt’s compliance with their respective commitments. Globe did not disclose what those individual commitments are.

Globe owns 77 percent of ECPay, and is selling to Mynt its 77 million shares for P30 a piece, for a sum of P2.31 billion. Likewise, minority investor Payment One Inc. has signed on the buyout, allowing Mynt to fully own ECPay.

Mynt will pay P2.12 billion to Globe upon closing, and the balance will be settled over the next three years minus any claims, liabilities, costs, expenses and penalties.

With the acquisition, Mynt plans to guide ECPay in its digital journey, similar to how it elevated GCash into what it is now, a $5-billion company gearing up for an initial public offering (IPO).

ECPay is a payment platform in the Philippines that acts as a one-stop shop where merchants can reach out to customers to facilitate transactions.

Likewise, Mynt’s buyout of ECPay cements GCash’s position as the undisputed leader in digital finance. Globe, for its part, lets go of an asset in a time when it is consolidating its business, and said proceeds from the sale would fund operational expenses.

In 2019, Globe bought out ECPay to expand its distribution network. At that time, Globe saw the need to have ECPay in its arm, as the platform enables it to process bills payments, load top-ups, among others.

Recently, Globe has disposed of passive assets, such as towers to raise cash, as it tries to achieve positive cash flow this year.

Meanwhile, Mynt operator GCash is busy improving the e-wallet’s capabilities to sustain market dominance in financial technology.