Starting October 2, mobile e-wallet GCash will be charging a “convenience fee” for withdrawals done via Bank of the Philippine Islands (BPI) and UnionBank. In the meantime, cashing out using GCash will still be free of charge according to the app’s help center.
There are approximately 77 million GCash users as of March 2023 (CREDIT: www.gcash.com).
Reason for future convenience fee charges
As justification, the e-wallet company used the term “increasing costs” as a reason for the additional levy that they’ll be charging on connected accounts for cash-ins via GCash transactions. The modification shall apply to connected accounts from specified banks, while both BPI and UnionBank will charge a convenience fee of US$5 per transaction.
Based on the Frequently Asked Questions (FAQs) about GCash as posted on UnionBank’s website, the service is still being provided for free (without charge) for all GCash users. BPI also confirms that the same policy is being observed at their end as of this writing.
However, BPI says it has the right to charge a fee for customer-initiated debits on specific account types (like BPI’s Kaya Savings accounts, which charge a P5.00 cost/debit). The bank further advises app users to check first with their local BPI branch to confirm what kind of account they have if they believe they are being charged a transaction fee after cashing out.
Other developments within GCash
Earlier in July, as part of the company’s continuing observance of gender equality month, GCash also extended benefits to people who are identified as members of the LGBTQIA+ community. The same set of benefits was similarly extended to their domestic partners.
These benefits include the “Life Partner Benefits Program,” which offers users access to tech services like KonsultaMD and Mind You. The e-wallet mobile app also offered health insurance, disability and accident insurance, bereavement coverage, wellness allowances, as well as bereavement coverage.
In addition to new options, the app also introduced GCredit, GLoan, and GGives, three lending and installment services, as well as GCash Cards and GCash Cards Visa-prepaid cards linked to the user’s account, this year.
Through GCash Overseas, a unique function that enables Filipinos living and working overseas to register for a GCash account using an international SIM card, the app’s features may now also be accessed internationally.
Finally, the e-wallet is now also preparing for its Initial Public Offering (IPO) within this year.
According to Ernest Cu, the CEO of Globe Telecom, the e-wallet’s parent company, GCash’s high growth and profitability make it suitable for an IPO — a process through which a private company offers its shares to the public for the first time.
“It is pretty much ripe for an IPO,” Cu said. “The growth is there, the profitability has been there for almost two years now. The plan now is to be push-button-ready by the end of the year. Let’s see where it takes us,” he further stated.
As of March this year, it was reported that there are approximately 77 million GCash users in the country.
