The new funding for Mynt comes at a time when large fintech investments are hard to come by given high interest rates and more-stringent investor expectations. It has, along with GCash’s strong performance, prompted the company to consider a dual listing in the Philippines and U.S. “The rationale is trying to take advantage of the liquidity in the US market,” Globe CEO Ernest Cu said in May, citing limited trading volumes in the Philippines.Compared to many fintech peers that have already gone public – and did so before they turned a profit – GCash is in a more favorable position.
While valuations in private markets often do not reflect how companies will be valued when they go public, there is reason to believe that Mynt’s is not excessively high. Indeed, GCash has 94 million users in a nation of 112 million and is profitable. In 2023, the company had net income of US$115 million. Mynt began to break even in the second half of 2021, and investment bank Jefferies expects that it could account for around 20% for Globe Telecom's 2024 earnings.
There has been some speculation that GCash might reverse its longstanding opposition to becoming a digital bank and seek an online lending license now that regulators have decided to allow more digital lenders. Per a decision by Bangko Sentral neg Pilipinas (BSP), from from January 1, 2025, new applications for digital banking licenses will be accepted, and a maximum of 10 online lenders will be allowed to operate in the country. There are currently six.
However, judging from the recent comment of GCash executives, GCash is unlikely to apply for a digital banking license. “Truthfully, you’ll get slower as an e-wallet if you get a banking license,” G-Xchange President and Chief Executive Officer Oscar Enrico A. Reyes told Philippine media in August. He noted the extensive regulatory requirements involved in becoming a licensed digital bank, which would consume time and resources. “And that’s the reason why we’re hesitant,” G-Xchange President and Chief Executive Officer Oscar Enrico A. Reyes, Jr. said.