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E-wallets are taking over in Asia, and the Philippines is gearing up for some exciting e-commerce growth.
In 2023, e-wallets were the go-to payment method online in Asia, capturing 70% of all e-commerce transaction value, up from 69% in 2022.
In the Philippines, the e-commerce market is expected to grow annually by 13.78% from 2024 to 2029. By the end of this period, the market is projected to reach USD$29.57 billion, showing huge potential for e-commerce in the country. With only 41% purchasing goods online, and international companies dominating 77% of the share, there is plenty of room for future growth.
For businesses looking to expand in the Philippines, it is crucial to understand GCash - a major player in the country's financial sector. Here's why GCash could be a gamechanger for your expansion plans.
Introduction to GCash: Powering the Philippines' digital economy
GCash, launched in 2004 by Mynt, starting as a simple money transfer service which has since grown into a powerful super app. Mynt further expanded the partnership between the Ant Group, Ayala Corporation and Globe Telecom, to reach a wider audience and realise its superapp ambition – and by May 2023, GCash had expanded to over 81 million users, covering 69% of the Philippine population.
Understanding GCash as a super app
This super app combines many different services in one easy-to-use platform, including:
- Mobile wallet and payments: Lets users send money, pay bills, and make cashless transactions with various merchants
- Financial services: Includes savings accounts (GSave), investments (GInvest), loans (GCredit, GLoan) and insurance (GInsure) - making it an all-in-one financial management tool
- E-commerce and lifestyle services: Includes food delivery (GLife), online shopping, and travel bookings, making it a useful tool for daily transactions and lifestyle needs
- Remittance and cross-border payments: GCash Padala lets users send money domestically and internationally, supporting the Filipino diaspora and global transactions
- Merchant services: Offers QR code payments, payment links, and POS solutions, enabling businesses to accept digital payments easily and seamlessly
- Loyalty and rewards: Rewards users for GCash transactions, encouraging customer loyalty and enhancing user experience
GCash's popularity and adoption factors in the Philippines
The Philippines has a young and digitally savvy population that is increasingly reliant on cashless transactions. With over 30% of Filipinos under the age of 15, the country boasts a rapidly growing young demographic eager to embrace digital lifestyles and financial services. Gcash's popularity is mainly driven by:
Versatile payment options
Merchants can tap into a wide array of payment options including QR codes, payment links, and APIs, all integrated into a single platform — allowing them to accept payments across various sales channels without hassle.
Convenience and accessibility
GCash offers numerous cash-in and cash-out options through extensive partner networks, catering to users in urban and remote areas alike.
Cash-In: Users can deposit funds to their GCash wallet in multiple ways, including over-the-counter transactions at Globe stores, partner banks, and thousands of accredited cash-in outlets (such as local sari-sari stores / convenience stores, and remittance centres). They can also cash-in through online bank transfers and debit/credit card payments.
Cash-Out: Users can withdraw funds from GCash at partner banks, ATMs, and over 170,000 cash-out outlets nationwide, including local sari-sari stores, pawnshops, and remittance centres. They can also transfer their GCash balance to linked bank accounts or debit cards.
Improved operational efficiency
Businesses benefit from features like detailed transaction reports, fast payment settlements, and direct fund management within the platform. These features streamline financial operations and enhance cash flow management.
Lifestyle integrations
GCash partners with various food delivery services, lifestyle merchants, and even government agencies, making it convenient for users to access a diverse range of services within the app.
Digital engagement
GCash connects with the younger demographic through in-app promotions and gamification elements designed to keep this tech-savvy audience engaged.
Financial inclusion
GCash has significantly expanded access to financial services like online payments, money transfers, insurance, savings, loans, and investment options for the 34.3 million unbanked Filipinos.
GCash payment modes
GCash users have a wide range of payment modes, including:
QR code payments
Lets users make payments by scanning QR codes at participating merchants for a contactless and secure payment experience.
In-app purchases
GCash Users can top up their prepaid mobile phone cards, pay bills, or make e-commerce transactions all within the app.
Peer-to-peer transfers
Allows users to easily transfer funds to other GCash users, either through the app or by sharing a payment link.
Remittance and cross-border payments
With GCash Padala, users can send money to non-GCash users, both within the Philippines and internationally, through a network of partner outlets
Merchant payments
Businesses can accept GCash payments through various solutions, including QR codes, payment links, and point-of-sale (POS) terminals.
Bank transfers
GCash users can transfer funds to and from linked bank accounts, to experience seamless integration with the traditional banking system.
GCash in the Philippines and beyond
While GCash operates primarily in the Philippines, it has expanded its availability to allow QR code payments in multiple countries and territories for Filipino travellers and overseas workers:
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● France ● Hong Kong ● Italy |
● Japan ● Macau ● Malaysia |
● South Korea ● Singapore ● UAE |
● United Kingdom ● USA |
GCash has expanded its global reach through a partnership with global payments giant Alipay+, allowing travellers to use the e-wallet for cashless transactions in 17 countries including Singapore, Japan, and the USA. International users are now able to sign up with mobile numbers in six countries including the USA, Italy, and Japan.
GCash's role in addressing market challenges in Asia
GCash tackles key market challenges in Asia including:
Access to a vast customer base
GCash has a massive user base of 81 million registered users as of May 2024, allowing merchants to tap into a large potential customer base, including the unbanked segment.
Fraud and data security
To address fraud and scams on the platform, Gcash has blocked over 900,000 accounts suspected of fraudulent activities and has partnered with law enforcement agencies like the National Bureau of Investigation and Philippine National Police to crack down on online scammers.
Compliance with financial regulations
GCash complies with all financial standards, including domestic ones set by its primary regulator, Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines. These BSP regulations include: BSP Circular 649, defining and regulating e-money as a financial activity; anti-money laundering and counter-terrorism financing procedures; and comprehensive risk management and reporting procedures to BSP.
Integration complexity with multiple payment methods
Customer API and integration options offered by GCash simplify payment setup for businesses and developers, featuring a user-friendly interface for merchants, support for various payment methods, and a secure and convenient payment experience for customers.
Fund management and settlement timelines
The GCash PRO Merchants feature helps businesses manage their finances by allowing fund transfers from GCash accounts to linked bank accounts, with a huge transaction limit of PHP9,999,999,999. This feature also includes same-day fund processing and crediting via PESONet.
Reduction of cart abandonment rates
GCash, which offers local payment options and international cashless transactions, can help businesses lower cart abandonment rates significantly. This is especially crucial as merchants without localised payments for APAC shoppers risk losing 32% more sales to abandoned carts compared to those who do.
Expand your business to the Philippines and beyond with Antom
As e-wallets continue to dominate the country's payment landscape, GCash stands out for its convenience, security, and extensive network of cash-in and cash-out points nationwide.
For e-commerce merchants eyeing expansion to the Philippines, leveraging GCash not only grants access to a tech-savvy market but also streamlines payment processes crucial for business growth in Asia.
This is where Antom can help. With Antom, you can have access to an ecosystem of over 250 payment methods across more than 40 countries — including GCash. With our deep market expertise, extensive partnerships network, and comprehensive payment technologies, we can help your business boost revenue, and support market entry to the Philippines and beyond.
