The Philippines’ top finance super app makes history as country’s only $5 billion unicorn

MANILA, Philippines, Oct. 8, 2024 /PRNewswire/ — Rooted in its mission to democratize financial services, GCash, the leading finance app in the Philippines, celebrates 20 years of commitment to digital financial inclusion as the nation’s first unicorn with a valuation exceeding $5 billion. This milestone highlights GCash’s global influence and its role in empowering users in the Philippines and across the world.

By consistently delivering innovative and accessible financial solutions, GCash stands out as one of the few financially sustainable fintech companies worldwide, dedicated to bridging the financial divide for underserved communities.

Key investments from Ayala Corporation, one of the Philippines’ largest and most diversified conglomerates, and Mitsubishi UFJ Financial Group (MUFG), Japan’s leading financial institution, have more than doubled GCash’s valuation from $2 billion in 2021. This recent funding round, which saw Ayala and MUFG each acquire an additional 8% stake in Mynt, the parent company of GCash, further solidifies GCash’s position as a trailblazer in financial inclusion across Southeast Asia.

“These past 20 years, we have made strides to provide more Filipinos with access to financial services. Now, we want to take it a step further and be their partner towards financial health and wellness,” GCash President and CEO Martha Sazon said. “Encouraged by the vision set by the Bangko Sentral ng Pilipinas and the United Nations towards digital financial inclusion, we will keep innovating to help Filipinos thrive everyday, be ready for a rainy day, and prepare for one day.”

Redefining financial access

Since its inception, GCash has prioritized how technological innovations can help promote financial inclusion. Before the pandemic, only 29% had bank accounts, less than 1% had access to investments, and 2% held credit cards. With 47% of the population still unbanked, GCash leveraged digital tools to significantly broaden access to digital financial services. Beyond basic transactions, the finance super app offers innovative in-app credit services and affordable lending products like GCredit, GLoan, and GGives and has disbursed PHP 155 billion to 5.4 million unique borrowers, including underserved segments.

In wealth management and insurance, GFunds has on boarded 6.6 million users and handles 3 in 4 UITF transactions. Meanwhile, GStocks represents 1 in 5 PSE accounts with 682,000 users and GInsure protects 7.8 million Filipinos with 28 million policies sold, making investment products and financial protection more inclusive and responsive to the needs of Filipinos.

Financial empowerment across the Philippines and beyond

GCash’s influence extends far beyond the country, solidifying its position as a global player in fintech. Through international remittance services, GCash Overseas, and Global Pay, GCash caters to the needs of millions of Overseas Filipino Workers (OFWs) and provides seamless financial services across borders. GCash Overseas allows Filipinos abroad to create GCash accounts using their international mobile numbers and send money back home, pay bills, and more from 16 countries and territories. Meanwhile, Global Pay enables Filipinos to use their GCash app in 47 countries at over 3 million merchants worldwide. This global expansion has also allowed GCash to become the second most-used finance app in the UAE, underscoring its global relevance.

GCash’s services have not only increased the number of accounts but also redefined the demographics of financial inclusion. In fact, 90% of GCash users come from lower-income classes, 57% are women, and 74% reside outside Metro Manila. This inclusivity is a testament to GCash’s commitment to being a “champion of digital financial inclusion,” helping Filipinos thrive in their everyday lives, wherever they are.

A sustainable and inclusive future for all

Beyond financial inclusion, GCash is also committed to environmental and social sustainability, making it one of the few financially sustainable fintech companies globally. Through its GForest initiative, GCash has mobilized 17 million users to plant over 2.8 million trees, reducing carbon emissions by 138,000 metric tons. This reforestation effort not only contributes to environmental conservation but also provides livelihoods for over 8,600 farmers.

By continually evolving and expanding its offerings, GCash is poised to solidify its status as a leader in the global fintech arena, driving transformative change that not only helps Filipinos thrive every day but also enhances the broader financial ecosystem beyond the Philippine borders.

About GCash

GCash is the Philippines’ #1 Finance Super App and Largest Cashless Ecosystem. Through the GCash App, users can easily purchase prepaid airtime; pay bills via partner billers nationwide; send and receive money anywhere in the Philippines, even to other bank accounts; purchase from over 6 million partner merchants and social sellers; and get access to savings, credit, loans, insurance and invest money, and so much more, all at the convenience of their smartphones. Its mobile wallet operations are handled by G-Xchange, Inc. (GXI), a wholly-owned subsidiary of Mynt, the first and only $5 billion unicorn in the Philippines.

GCash is a staunch supporter of the United Nations Sustainable Development Goals (SDGs), particularly UN SDGs 5,8,10, and 13, which focus on safety & security, financial inclusion, diversity, equity, and inclusion as well as taking urgent action to combat climate change and its impacts, respectively. 

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SOURCE GCash

Mastercard study reveals the affluent are optimizing their wallets to live well and leave a legacy

SINGAPORE, Oct. 9, 2024 /PRNewswire/ — Mastercard today revealed that 73% of affluent consumers like to closely manage their money, with 48% even using “financial gymnastics” to maximize rewards. These consumers, who are in the top 10% of household incomes domestically, juggle various payment methods, plan their spending carefully, and rely on diverse information sources like word of mouth and proactive research. At the same time, they deftly manage multiple payment options, such as credit, debit, and prepaid cards, or alternative payment methods, strategizing their use for different transactions, like credit for travel or debit for daily necessities. By optimizing their wallets, they aim to capitalize on incentives, live comfortably, and save to leave a legacy.

Bending over backwards to maximize returns

Mastercard’s study, which surveyed 29,536 consumers in 23 markets globally[1] (including the affluent in Australia, Hong Kong SAR and India), found that affluent consumers look for many ways to achieve the perfect wallet. Carefully considered payment decisions help them to make the smartest choice for every transaction, earning them points, rewards, and discounts. Their high level of engagement with payment choices extends to how the affluent seek to benefit from their financial institutions, with 69% worldwide trusting that they can take advantage of opportunities offered by their financial services providers. Such perks include rebates on purchases or discounted rates on dining and entertainment.

The study also found that affluent consumers take a more intentional approach to their finances to maintain their comfort level. Their payment choices are led by convenience, but not at the expense of safety. Payment methods that are widely accepted, dependable, portable, and quick, with the assurance of security, become top choices. Notably, they also want to feel respected as they seek an emotional connection with the varied payment options in their bespoke wallets, among which credit cards tend to be the favorite.

Credit cards remain top of affluent consumers’ wallets for a few key reasons: 47% say perks (like cashback, air miles, shopping points, etc.) drive usage decisions, while 31% prefer credit for making them feel valued, and 27% favor credit because of the purchase protection it offers. Peeking inside their wallets, those of affluent consumers contain more credit cards (2.1 vs 1.7) and more payment methods overall (average of 6 vs 5) than that of mass consumers’, demonstrating their willingness to do more to maximize the incentives from each transaction. Here in APAC, affluent consumers use even more payment methods, with an average of 7.5 per person.

In comparison, debit cards are the preferred payment method for mass consumers, especially when buying daily necessities. Interestingly, the preference for debit is particularly strong in Australia (83% using debit vs 58% using credit) and India (85% using debit vs 64% using credit), while Hong Kong leans more heavily on credit (79% vs 42% using debit).  

“Affluent consumers tend to be very astute in how they select and utilize the payment tools in their wallets, strategizing how and when to use each payment method to capture the greatest returns. This hands-on, intentional approach reflects the growth mindset and commitment to self-improvement that affluent consumers exhibit in all aspects of their lives, including career, health and wellness, hobbies and learning,” said Sandeep Malhotra, executive vice president, Products & Innovation, Asia Pacific, Mastercard. “And while ambition has always been a core trait of the affluent audience, the difference is that nowadays they work to live, not just live to work, reflecting a departure from previous norms. The financial institutions that best serve this demographic recognize these characteristics and find valuable ways to support their customers’ financial, professional and personal progression.”

Illustrating this point, the study identified that while career advancement is key to 30% of the affluent demographic globally, it is not the most important pursuit overall, as 52% said their top personal goal for the next five years is to travel abroad more. Here in the Asia Pacific region, some geographic differences stood out. Australia’s affluent are prioritizing travel (58%) over career (19%) while India’s affluent are focusing on both pursuits (48% career, 56% travel). Hong Kong’s come in at the middle at 30% concentrating on career and 40% prioritizing travel.

Willing to take risks for outsized returns

To improve their financial situation, affluent individuals globally are quick to adopt new payment methods as they discover innovative ways to build wealth. Reflecting their higher risk tolerance (with 45% willing to take risks) vis-à-vis mass consumers (65% of whom prefer to avoid risks), the study found that 38% of affluent consumers are early adopters of new financial technology (fintech) while only 25% of mass consumers are. The affluent embrace and use fintech innovations before they become mainstream, and enthusiastically explore new solutions that fintechs offer, including alternative payment methods like mobile payments and digital wallets.

While the affluent segment is more open to experimentation with fintech, once a new payment method is added to their wallet, time is money. This means affluent consumers expect the onboarding process to be simple and seamless. New cards need to be set up quickly, digitally, in only a few steps, and should link easily to their other accounts. To get this done fast, 45% of affluent consumers globally would rather pay a little more to save time, whereas only 37% of mass consumers would be willing to do so.

Planning ahead to leave a legacy

Finally, Mastercard’s study found that 59% of the affluent value experiences over possessions. Having built a solid financial foundation that covers their daily expenses, they want to dine out, be entertained, and travel. With comfort and security assured, the important pillars of family, life fulfilment and intentionality with finances come together with their longer-term view and desire to live a life with meaning and purpose.

This manifests in the affluent’s ultimate long-term objective to leave behind a legacy (i.e. resources) for their loved ones. Affluent consumers worldwide are 1.3 times more likely than the global population to prioritize saving for legacy and are 1.4 times more likely to have a financial goal of building an inheritance. Beyond their immediate circle, the affluent also aim to leave the world, or their community, a better place.  

– The End –

About Mastercard (NYSE: MA), www.mastercard.com

Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

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SOURCE Mastercard

MENLO PARK, Calif., Oct. 8, 2024 /PRNewswire/ — Armentum Partners, the leading investment bank focused exclusively on raising non-dilutive and structured financings for growth stage healthcare and technology companies, is delighted to announce the addition of senior banker, Andrew Fineberg, as a Managing Director. Andrew joins with a long history of successfully advising academic and not-for-profit institutions around the world on pharmaceutical royalty monetization and corporate clients on the full spectrum of non-dilutive and structured financing options. Andrew, who will be based in New York City, joins Armentum Partners from OrbiMed Advisors, LLC, where he was a Managing Director in the Royalty and Credit Opportunities Fund. 

“We are excited to have Andrew join our team. Andrew has a unique and dominant position in the royalty space as one of the most active and well-respected advisors. We believe his experience will allow us to help our academic and corporate clients explore a wider range of non-dilutive and structured financing alternatives,” commented Chris Carthy, Ph.D., Founder and Managing Partner of Armentum Partners. The investment bank now covers all aspects of non-equity financings with a presence in Silicon Valley, New York, Boston, Philadelphia, and Chicago.

On joining, Andrew said “I am thrilled to join Armentum and get back to doing what I enjoy most, delivering royalty solutions to academic institutions and structured financings to companies. I was attracted to Armentum’s market leading position, stellar reputation with investors and clients, and their very experienced senior bankers.” 

Andrew has previously held senior roles at SVB Leerink, MTS Health Partners, Torreya Partners, and Cowen & Company. Andrew is a graduate of the Wharton School at the University of Pennsylvania.

About Armentum Partners

Armentum is a full-service, independent financial advisory firm with over 150 years of combined experience in investment banking, commercial banking and lending, venture financing, private and public equity investing, and business development. While Armentum is full-service, its main focus is raising debt and non-dilutive capital raising solutions primarily for technology and healthcare companies. Armentum’s clients benefit from its sector focus and unique backgrounds in the healthcare and scientific fields, including team members with previous careers in engineering and research. Armentum’s managing partners have been working together over the last decade, bringing consistency to each process, and driving its goal of securing the best structure and cost of non-dilutive capital for clients to best meet their strategic growth needs. The firm has remained incredibly active, having raised $16 billion since inception across 350+ transaction, including $2 billion thus far in 2024. Armentum Partners’ employees are fully Registered Representatives of a FINRA member firm.

Media Contact: Kristina Mourlot, kristina@armentumpartners.com, 312-502-0793

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SOURCE Armentum Partners