Globe secures stake in electronic payments channel for P1.54B
Globe Telecom is paying P1.54 billion to acquire a majority stake in Electronic Commerce Payments Inc. (ECPay), the collections platform used by a variety of businesses from online retailers to airlines.
Globe said in a stock exchange filing the executive committee of its board of directors approved the acquisition of 49.28 million shares, or a 77-percent stake, in ECPay.
ECPay, which has partner merchants spread across 9,000 sites in the Philippines, is considered one of the country’s largest third-party electronic payments service providers. It claims over 100,000 transactions per day for some 150 biller-partners.
The deal comes as Globe seeks to diversify its business while expanding its digital footprint via the mobile wallet GCash, a venture with Chinese billionaire Jack Ma’s Ant Financial.
“Integrating ECPay into Globe’s network of retailers will add value to our distribution channels, enabling them to offer a suite of products and services via a single platform,” Ernest Cu, Globe president and CEO, said in a statement on Friday.
Globe added the ECPay platform would enable small business owners to offer more products and services, which in turn should stimulate the e-commerce industry and the digital economy.
“It will also future-proof Globe’s distribution network, bringing the company a step closer to its vision of a digitally enabled Philippines,” Globe said in its filing.
ECPay provides a range of services, including bills payment, electronic prepaid mobile phone top-up loading, electronic pins, e-wallet and cash card reloading, airline ticket payments, online shopping payments and credit card payments.
Globe said it tapped BPI Capital as the exclusive financial adviser to the deal.
