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“We do believe GCash may see some pressure in the short term,” Globe chief financial officer Carlo Puno said during the company’s quarterly briefing. “But we’re very confident in the mid- to long-term growth potential of GCash, simply because it is underpinned by the tailwinds from digitalization of financial services, as well as the underlying culture of innovation that they have.”
Core business still resilient
Globe president and CEO Carl Cruz said GCash’s main operations remain strong despite the regulatory headwinds affecting parts of the platform’s transaction base.
“The core business of GCash remains to be very, very strong,” Cruz said. “Load, e-load transfers, and loans are still doing very, very well. So that’s something that we can all look forward to.”
DBy the numbers
Globe’s latest financial statements showed that net contributions from affiliates — primarily GCash’s parent firm Mynt — declined 24 percent to P1.6 billion in the third quarter from P2.1 billion in the previous quarter.
Market watchers opine that this was primarily caused by the regulatory curbs put on transfers between GCash and online gambling apps in the middle of the third quarter which, when annualized, will likely result in a substantially larger contribution decline for the popular e-wallet.
Financial inclusion still driving growth
GCash continues to be the dominant platform for digital financial inclusion in the Philippines, with eight in 10 Filipinos having used it for transactions, Globe said. About 90 percent of users come from lower socioeconomic segments, while 78 percent are from outside Metro Manila.
The platform’s innovation strategy remains a key driver. GCash recently introduced its tap-to-pay feature powered by NFC technology, which enables contactless payments across 150 million merchants worldwide. It is also being piloted in MRT-3 train stations, giving commuters a faster digital payment option.
Expanding into credit, savings, and investments
GCash has disbursed P323 billion in loans to 10.2 million unique borrowers, a 73-percent increase from last year. Its wealth management suite continues to grow, with GSave serving 15.3 million users, GFunds reaching 8.6 million, and GCrypto enabling 4.4 million to trade digital assets.
Through its new GStocks PH initial public offering subscription feature, users can now invest in public offerings directly within the app, democratizing access to the capital markets.
The bottom line
While regulatory tightening on gambling-related transactions may dampen short-term performance, Globe’s leadership believes GCash’s ecosystem and continued innovation will sustain its position as the country’s top fintech platform over the long term. —Daxim L. Lucas | Ed: Corrie S. Narisma
