Go-Jek has acquired a stake in Coins.ph, a blockchain-enabled mobile wallet startup in the Philippines.
According to an official statement, Coins.ph will partner with Go-Jek’s payments platform, Go-Pay, to provide financial services in the Philippines. Both will work on expanding access to cashless payments, banking services and promoting financial inclusion in the country.
The size of the transaction was undisclosed but a TechCrunch report, citing industry sources, pegged the deal value at $72 million, giving the ride-hailing major a majority stake in the Philippine e-wallet firm.
The move by Go-Jek further strengthens its grip on fintech and cashless payments even as it seeks to bring its services to new markets this year.
According to Financial Times Confidential Research in late 2018, Go-Pay is the market leader for e-payments in Indonesia, with almost three-quarters of mobile payments users opting for the service.
Go-Jek also claims that more than 50 per cent of transactions on its ecosystem are cashless. The deal could also be read as a strategic move by Go-Jek to enter the Philippine market.
Earlier this month, Go-Jek’s plans to enter the country hit a roadblock after the local transport regulator rejected its application to launch a ride-hailing service in the country, citing foreign ownership concerns.
Go-Jek funder and CEO Nadiem Makarim said: “With the second largest population and a strong domestic economy, the Philippines is one of the most exciting markets in Southeast Asia and through this partnership with Coins.ph, we are humbled to take part in the country’s digital payments transformation, through technology and empowerment of fintech small and medium businesses.”
Coins.ph claims to have over 5 million customers on its network and process over 6 million transactions per month. It also offers services such as remittances, mobile air-time, bill payments, and online shopping with over 100,000 merchants. The startup currently operates out of the Philippines and Thailand. All senior management from Coins.ph will continue in their existing roles.