Mynt acquires payments platform from Globe ahead of IPO

MANILA – Globe Telecom is investing heavily in developing GCash operator Mynt's payments platform ahead of an expected initial public offering (IPO) that will create the largest fintech group on the Philippine Stock Exchange.

In a stock exchange filing on Monday, Globe announced its intention to sell its 77% stake in Electronic Commerce Payments Inc. (ECPay) to Mynt for P2.3 billion.

The sale is worth about 50% more than Globe's acquisition cost in 2019.

“GCash's rapid emergence as one of the top fintech brands and its aggressive expansion of financial services creates the perfect environment for strategic synergy with ECPay,” Globe CEO and President Ernest Cu said in the filing.

He added: “Mynt's acquisition of ECPay will be able to share each other's strengths and resources more efficiently and effectively, thereby creating a seamless upgraded experience for customers.”

read: Mynt, the financial technology company behind GCash, reaches “double unicorn” status

Globe said the deal is still subject to various regulatory approvals and closing conditions.

Founded in 2011, ECPay is a payments platform that allows merchant partners to process bill payments, e-prepaid mobile phone top-ups, e-PINs, e-wallets and cash card recharges, flight ticket payments, online shopping payments and credit card payments across their various Point of sale.

ECPay's minority shareholder Payment One Inc. also participated in the sale, Globe reported. This means Mynt is acquiring 100% of ECPay's shares.

Acquisition of EasyPay

“Mynt’s digital intelligence will permeate ECPay, maximizing its previously untapped potential. On the other hand, as mobile wallets of all shapes and sizes continue to emerge, GCash can further differentiate itself from its competitors,” Globe Finance Minister Rizza Maniego-Eala said in the same document.

“With ECPay in Mynt's capable hands, Globe can better guide its enterprise and collaboratively develop the entire Globe Group ecosystem,” she said.

Globe added that the deal will “better harmonize the functionality of ECPay and GCash.”

“This acquisition will help GCash provide best-in-class services in the fintech space and further democratize financial access,” the company said.

Oscar Reyes Jr., CEO of Mynt subsidiary G-Xchange Inc., told reporters that they are still preparing for Mynt's public listing.

Your subscription could not be saved. please try again.

Your subscription has been successful.

“Standing orders come from [Globe CEO Ernest Cu] It's about getting us ready for an IPO. So we are doing everything we can to achieve that,” he said.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *