The parent company of the widely used Philippines mobile payments platform GCash has secured fresh funding from some prominent stakeholders, demonstrating the popularity and value of alternative payments in Southeast Asia.
Mynt, the trading name of Global Fintech Solutions, received investment from Philippines conglomerate Ayala Corporation and Japan’s largest banking group, the Mitsubishi UFJ Financial Group (MUFG).
The investments have led to a doublien of Mynt’s valuation since its latest funding round in 2021, rising from $2bn to $5bn. Interest from the likes of MUFG is indicative of the solid foothold Mynt and GCash have built up in the Philippines, with the country recording PHP 6.7bn in net income last year (£90.5m / $115.7m).
Martha Sazon, President and CEO of Mynt, said: “We are thrilled to welcome MUFG as a new strategic partner. With their global expertise and reach within the financial inclusion space, they will be instrumental in further expanding GCash’s social impact, especially to the underserved.
“Alongside this, Ayala’s unmatched commitment to Philippine economic growth and development, and its expertise in multiple industries will accelerate GCash’s mission.”
GCash is often referred to as one example of the popularity of local mobile payments methods in countries outside the Western economies. The platform has well over 40 million monthly users and has a monthly transaction volume in the hundreds of millions of PHP.
Other global examples of popular local payments methods include Brazil’s Pix, arguably the standout with by far the largest user base, as well as M-Pesa in African markets like Kenya and Nigeria.
GCash is a joint venture between the aforementioned Ayala and Ant Group, an affiliate company of Alipay operator Alibaba Group. GCash is one of the most significant payments companies Ant Group has a stake in, with the firm having also secured a presence in South Korea, Singapore and Hong Kong, among other countries and territories.
The latest funding round has seen Ayala, the other participant in the joint venture, increase its investment in GCash via an additional 8% stake in Mynt. MUFG, meanwhile, is also acquiring an 8% stake in the company.
“We like the long-term growth prospects of Mynt,” remarked Cezar Consing, President and CEO of Ayala Corporation.
“It is a clear leader in a fast growing space and a key contributor to the Philippines’ economic growth. Mynt is valuable because it enables underserved Filipino consumer & business segments to thrive.”
