GCash out to entice prepaid market to participate in digital economy
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GCash, operated by Globe Fintech Innovations Inc. (Mynt), is enticing the prepaid mobile subscriber market in the Philippines to participate in the digital economy through its e-money platform, as it aims to bring the benefits of financial technology (fintech) to more Filipinos.
While GCash is partly owned by Globe Telecom Inc., it has adopted a telco agnostic approach in promoting the mobile wallet. This means that all subscribers in the Philippines — may they be Globe, TM, Smart, Sun, TNT, or Cherry users — may download and register for a GCash account through their mobile phones.
Even subscribers of the future third telco player are afforded the capability to download the free GCash app on Google Play Store or iOS App Store and register for an account.
This means that more than 100 million Filipinos have access to GCash services. Globe has a subscriber base of 74.1 million as of end-2018, while the PLDT Group, which owns Smart, Sun, and TNT, ended the year at 60.5 million users. In total, prepaid accounts for 129.7 million subscribers, and the remainder are postpaid accounts.
“Our vision is to promote financial inclusion across all sectors of the society. As we lead the movement for financial inclusion in the country, we believe that providing a telco agnostic platform will help more Filipinos participate in the digital economy,” Mynt Vice President for Corporate Communications Ney Villasenor said.
GCash targets to capture the prepaid market, which mostly comprises Filipinos that belong to the Classes C and D in the socio-economic bracket, as they are also usually the ones that are excluded from fully participating in the digital economy.
“We are tapping the prepaid market to bring them the financial tools that will help them with their financial needs at ease. Our value proposition for our customers is convenience on top of our best-in-class services backed by our strong partnerships with various stakeholders,” Villasenor said.
GCash promises to help Filipinos unlock the potential of the digital economy, as it offers them a convenient and reliable app for their financial needs.
A GCash digital wallet allows users to buy and borrow load on any mobile network; pay bills for utilities, credit card, government services, and tuition; and send money to another GCash user without a transaction fee. Users can also shop online, shop at physical stores by scanning the QR code at the counter, and skip movie lines by booking tickets through the app.
Today, roughly 20 million users are afforded these benefits and services through the GCash app.
“Increasing enablement by adopting a telco agnostic strategy allows us to bring finance to all. We at Mynt continue to push for financial inclusion by limiting access of users based on mobile network. We have to work better together to help the government promote financial inclusion and realize its goal of enjoining millions of Filipinos into going digital,” Villasenor said.
Around 66 percent of Filipinos are still unbanked and 90 percent are still without a credit score. However, around 72.6 million Filipinos owned a mobile phone in 2018 and this is expected to further increase to 75.6 million in 2020. This presents a huge opportunity for GCash, as it leverages on its mobile-first technology to bridge the gap between the banked and unbanked.
Just like a bank, GCash provides its users with a credit line which they can use to shop or pay bills. The credit limit is based on a person’s GScore, which is a trust score based on their GCash transactions and can increase the more they use GCash.
GCash funds can be withdrawn through any BancNet or Mastercard ATM, any GCash Partner Outlet, or be transferred to any bank enrolled in InstaPay. Aside from these, users can also shop at US stores with the GCash American Express, and link their digital cards to PayPal without extra charge.