Stakeholders and interested parties are invited to submit comments on impact to the market and to competition of the proposed acquisition by Globe Fintech Innovations Inc. (“Mynt”) of shares of Electronic Commerce Payments (EC Pay), Inc. (“ECPay”), which is currently under review by the Philippine Competition Commission. Comments may include possible effects of the transaction on the prices, quality, and range of products and services being offered by the merging parties.

Parties to the Transaction

The acquiring entity, Mynt, is the operator of GCash,[1] a financial super-app that allows users to send and receive money, pay merchants or billers, buy mobile load, access wealth management and lifestyle products, and obtain credit and loan solutions. Apart from electronic fund transfers and bills payment, GCash offers features such as GGives, GCredit, GLoan, GInsure, GStocks, and GCrypto. It also provides payment facilities through the GCash Pera Outlet network and other retail outlets and is a partner of the cross-border Alipay+ network. It is a joint venture among Globe Capital Venture Holdings, Inc., AC Ventures Holding Corp., Alipay Singapore Holdings PTE. LTD, and Antfin Singapore Holdings PTE. LTD.

The acquired entity, ECPay, is an electronic customer purchase and payment systems provider, giving consumers, merchants, and billers nationwide access to multiple modes of payment, both offline and online, thereby facilitating end-to-end transactions. It operates its own sari-sari store-based network, KaECPay, and its own digital touchpoint network through ECPay Kiosks. It also has a nationwide merchant network located in convenience stores, service stations, supermarkets, department stores, malls, pawnshops, remittance centers and other retail outlets nationwide, providing services such as bills payments, electronic loading, electronic pins, cash-in, cash-out, online shopping payments, and credit card payments. It is owned by Globe Telecom, Inc. and Payment One, Inc.

Abstract of the Transaction

Mynt shall acquire 100% of the issued and outstanding share capital of ECPay (the “Transaction”), making ECPay a wholly-owned Mynt subsidiary.

Review of the Transaction

During Phase I review, the Mergers and Acquisitions Office (“MAO”) found some indication of possible adverse effects of the Transaction on competition and thus, recommended to proceed to Phase II review.

In the Phase II review of the Transaction, the MAO shall conduct a more detailed and extensive assessment to determine whether the Transaction will lead to a substantial lessening of competition, particularly in the following relevant and affected markets:

1. Provision of Payment Services[2] in Retail Stores;
2. Provision of Aggregator[3] Services to Issuers[4];
3. Provision of Payment Channels[5] to Portfolio Partner[6];
   1. Provision of Sari-sari Store Payment Channels;
   2. Provision of Digital Touchpoint Payment Channels;
   3. Provision of Online Application Payment Channels; and
4. Provision of Merchant Solutions;[7]

The MAO will also look into the possible impact on the following markets:

1. Provision of Credit Services;
2. Provision of Cash and Personal Loans; and
3. Provision of Other Financial Products and Services.[8]

More specifically, the MAO shall conduct a more in-depth assessment of possible harm to consumers post-Transaction, such as the likely increase in prices and/or likely decrease in the quality or range of products and services offered by the merging entities.

Commencement of Phase II Review

The MAO issued a Notice to Proceed to Phase II review and Request for Information (“RFI”) to the Parties to the Transaction on 18 September 2024. The Phase II review of the Transaction commenced on 19 September 2024.

Submission of Comments

Stakeholders’ comments on these markets are critical to the MAO’s ongoing assessment. Comments may be submitted until 8 December 2024 via (i) e-mail to mergers@phcc.gov.ph with subject title “Comments on Mynt and ECPay,” (ii) mail to the Philippine Competition Commission located at 25^th floor, Tower 1, Vertis North Corporate Center, North Avenue, Quezon City 1105, or (iii) by answering the online form through this link.

[1] Through its wholly-owned subsidiary, G-Xchange, Inc.

[2] Payment services include (a) bills payment; (b) purchase of electronic load; (c) cash-in; (d) cash-out; and (e) purchase of electronic pins.

[3] An aggregator is an intermediary entity that acquires and maintains relationships with third parties to include the latter in their Portfolio Partners and aggregates such relationships and connections for ease of transacting.

[4] An Issuer is any entity that operates payment channels, whether online or offline.

[5] A payment channel is any way a customer might make a payment or anywhere that a merchant might accept a payment. Payment channels include (a) mobile applications; (b) sari-sari store outlets; (c) digital touchpoints; (d) convenience stores; and (e) locations that provide over-the counter services.

[6] Portfolio Partners refer to the billers and other merchants that avail of Aggregator and payment channel services of the Parties. These merchants and Billers are grouped together in a portfolio for ease of offering and transacting.

[7] Merchant Solutions Services differ from payment services mainly because payment services are aimed at individual users who want to make transactions, pay bills, transfer money, or top up their accounts. In contrast, Merchant Solutions Services are designed to help businesses handle payments and manage transactions with their customers. On the GCash platform, this includes Scan-to-Pay, Online Payments for e-commerce, and GLife.

[8] This includes Electronic Fund Transfers on the GCash platform, GSave, GInsure, GFunds, GCrypto, GStocks and other similar services.

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