Jack Ma’s Ant Financial Services Group made its first-ever investment in the Philippines acquiring a stake in fintech company Mynt, a unit of Globe Capital Venture Holdings (GCVHI) under Globe Telecom Inc and diversified conglomerate Ayala Corp.
Globe disclosed on Friday (February 18) the deal is meant to accelerate financial inclusion and upgrade payment services in the Philippines. Ant Financial is the parent firm of Alipay, a leading mobile payments app in China.
“The fresh capital infusion will help Mynt achieve its vision of becoming a world-class online and offline payment provider as well as scale up its mobile wallet services and quickly expand its digital financial services,” Globe said in its statement.
Ant Financial and Ayala have signed the definitive documents to enter into an investment via subscription to new shares in Mynt, which operates GCash and Fuse Lending.
GCash is an internationally-acclaimed micropayment service which can be used to buy prepaid load, pay bills, send money, make donations, shop online, and purchase goods without the need for cash.
Fuse Lending, meanwhile, offers personal and business loans to unbanked and underserved Filipinos through the use of mobile technology, alternative data, and innovative credit scoring methods.
Subject to the closing of the transaction, Ant Financial, will own a substantial minority interest in Mynt while Ayala will acquire a minority interest. GCVHI will hold the remaining equity interest.
One of the main strategies is to utilize Alipay’s technology to upgrade payment experience for local users of Mynt’s GCash.
Ayala Chairman and CEO Jaime Augusto Zobel de Ayala expressed confidence that the platform will redefine the country’s financial services space amidst a robust consumer market and an increasingly digital environment.
“With the combined strengths of Ayala, Globe, and Ant Financial, we believe we can help more Filipinos gain access to safer, more convenient, and extensive payment and lending platforms,” Ayala said.
Globe reported Mynt is currently the biggest mobile money base in the Philippines with over three million registered customers and P1 billion worth of transactions per week.
Mynt is also the only company in the Philippines that serves as a one-stop shop for fintech services for consumers, merchants, and organizations through GCash and Fuse Lending.