The Philippine Competition Commission (PCC) has launched a second phase of review for GCash’s planned acquisition of a 100-percent stake in Electronic Commerce Payments Inc. (EC Pay) for P3 billion.
In an emailed statement on Friday, Nov. 22, the competition watchdog said a second round of review was needed after it identified potential competition concerns in several key markets, including payment services, aggregator services, and merchant solutions.
“These concerns involve potential impacts on competition in retail and digital payment channels, such as sari-sari stores, retail outlets, and online payment systems,” it said, adding that a more detailed assessment would look into whether the transaction may substantially lessen competition in the industry.
Last year, Globe Fintech Innovations Inc. (Mynt)—GCash’s parent company, announced plans to fully acquire ECPay from Globe Telecom Inc. and Payment One Inc. for P3 billion.
Globe currently owns a 77-percent share in ECPay while the remaining stake is owned by Payment One Inc.
As part of the new round of review, the PCC has invited stakeholders and the general public to submit comments on the potential impact of the said acquisition until December 8, 2024. Comments should address how the transaction may affect competition, quality, or the availability of services in the relevant markets.
“GCash’s meteoric rise to become one of the top fintech brands and the aggressive expansion of its financial services have created a perfect environment for strategic synergies with ECPay,” Globe President and Chief Executive Officer Ernest Cu said.
“The acquisition will help GCash provide best-in-class services in the fintech space and further democratize financial access,” it added.
ECPay will gain access to GCash’s platform upon completion of the transaction.
ECPay is an electronic payment service provider established in 2001 and was acquired by Globe in 2019. Its platform allows its partners to process bills payments, online shopping and credit card payments, as well as e-wallet and cash card reloading