by Jade Saavedra, Correspondent
The future of how millions of Filipinos manage their money just got a major international boost. Ayala Corporation, the nation’s premier business powerhouse, has officially sold 50% of its wholly owned subsidiary, Ayala Corporation Ventures Holding Corp. (ACV), to Mitsubishi Corporation for P18.4 billion.
The deal expands Mitsubishi’s stake in the Philippines fintech sector, particularly in Mynt, the parent company of GCash and Fuse Lending. The move underscores a shared commitment to driving fintech innovation and scaling Mynt’s presence globally. The agreement was announced on October 18, 2024, and was finalized on March 31 of this year.
ACV owns approximately 13% of Globe Fintech Innovations Inc. (Mynt), the parent company of GCash, the Philippines’ leading mobile wallet, and Fuse Lending, a technology-driven micro- lender. Mitsubishi’s expertise and extensive network in financial services, cloud-based payments, and advanced credit algorithms are expected to propel Mynt into new growth avenues, particularly in the overseas markets.
As financial technology evolves, this partnership presents a strategic opportunity to integrate Mynt into Japan’s well-established digital finance ecosystem.
This significant development comes at a pivotal time for the Philippine digital finance arena, where another homegrown fintech titan, Maya, which recently achieved unicorn status, is also in the spotlight due to reports that its key backer, KKR, is exploring a potential sale of its minority stake. This parallel development underscores the intense dynamism and potential for significant shifts within the country’s digital financial ecosystem.
Ayala: It’s all about serving Filipinos better
Cezar Consing, Ayala Corporation’s President and CEO, emphasized the importance of this collaboration, saying, “We believe Mitsubishi can add meaningful value to Mynt, which will allow Mynt to deliver significant value to its over 94 million registered users. It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible.”
GCash has revolutionized digital payments in the Philippines, offering millions of Filipinos seamless mobile transactions, banking services, and access to credit. With over 94 million registered users, GCash leads the race in ensuring financial inclusion within the country. Fuse Lending, Mynt’s micro-lending arm, complements GCash by offering accessible financing solutions, addressing gaps in traditional banking, and supporting small businesses and individual borrowers.
The Ayala-Mitsubishi partnership traces back to 1974, covering various industries, including industrial estates, renewable energy, water utilities, and auto dealerships. This latest move aligns with their shared vision of capitalizing on the Philippines’s economic growth, which remains one of the fastest in the region.
Mitsubishi’s entry into the fintech sector through Ayala further cements its confidence in the Philippines market. By leveraging its global expertise, Mitsubishi can help Mynt expand beyond the Philippines and position itself as a competitive fintech player in Asia and beyond.
The integration of Japanese technology, financial services, and infrastructure into Mynt’s ecosystem could revolutionize how digital payments and credit services are offered to consumers. Thus potentially leading Filipinos to better financial security and inclusion opportunities.
More than just a financial transaction
This P18.4-billion deal is ultimately more than just a financial transaction; it represents a strategic shift in how Philippine fintech can scale globally.
With increasing consumer demand for digital finance solutions and the rapid adoption of mobile payments, Mynt is well-positioned to lead the charge.
For Mitsubishi, this partnership is a crucial entry point into the country’s flourishing fintech market. More importantly, for millions of Filipinos relying on GCash and Fuse Lending, this collaboration could mean better financial access, more innovative products, and enhanced digital banking experiences.
As the Philippine economy continues to grow, investments like this reaffirm the country’s potential as a fintech powerhouse. While growing the Philippines’ financial technology and economy, it also moves to further financial inclusion for Filipinos.
Ayala and Mitsubishi’s strengthened alliance is a clear indication that the future of digital finance in the Philippines is set for unprecedented expansion.