Alibaba Group's affiliate company Ant Financial agreed to buy a U.S. money transfer service provider MoneyGram. Now, in a move closer to home, Ant Financial has invested into an influential fintech in Asia.
The Philippine mobile operator Globe Telecom has announced that Ant Financial Services Group has entered into a strategic partnership with Globe Fintech Innovations, (Mynt), a subsidiary of Globe Capital Venture Holdings (GCVHI) to accelerate financial inclusion and upgrade payment services in the Philippines.
Ant Financial, parent company of Alipay, and Ayala Corp have signed the definitive documents to enter into an investment via subscription to new shares in Mynt, which operates GCash and Fuse Lending.
Disrupting Traditional Methods
Subject to the closing of the transaction, Ant Financial, will own a substantial minority interest in Mynt while Ayala Corp will acquire a minority interest. GCVHI will hold the remaining equity interest.
Mynts purpose is to enable financial access for consumers and merchants by disrupting traditional channels through digital financial technology services.
Fresh Capital Infusion
It operates two fintech companies: GCash, a micropayment service that transforms the mobile phone into a virtual wallet for secure, fast, and convenient money transfer, and Fuse, a tech-based lending company that enables Filipinos to get personal and business loans through use of mobile technology, alternative data, and innovative credit scoring methods
The fresh capital infusion will help Mynt achieve its vision of becoming a world-class online and offline payment provider as well as scale up its mobile wallet services and quickly expand its digital financial services.
Growing Asian Influence
The deal represents Ant Financial’s first-ever investment in the Philippines and demonstrates the company’s confidence in Mynt and its management team to upgrade digital financial services in the region. With this partnership, Ant Financial, whose suite of digital financial services includes Alipay, will share with Mynt its know-how in using technology to provide equal access to financial services.
Ant Financial last September invested $680 million in Indian e-wallet company Paytm in its first significant foreign expansion efforts as it sought to expand its digital financial services abroad.
Assistance in Thailand
In November, the company partnered with Thailand’s fintech firm Ascend Money, which also runs a digital wallet service. Under the agreement, Ant Financial will assist Ascend Money to grow its online and offline payments and financial services ecosystem.
Businesses operated by Ant Financial Services Group include Alipay, Ant Fortune, Zhima Credit and MYbank.
