GCash operator Mynt will deploy 60 percent of its primary IPO proceeds into consumer lending, targeting the informal loan market across the Philippines.

The digital wallet counts 41.5 million monthly active users, but only 7.5 million borrow through its platform. Converting the remaining 34 million registered users into active credit customers forms the central growth pitch to equity investors ahead of listing.

Mynt runs its credit operations through Fuse Financing, offering micro-credit products like GLoan Sakto for sums as low as 100 pesos and Borrow Load for 20 pesos. More than 90 percent of the user base falls within the lower C2DE socio-economic brackets, where daily cash flow needs mirror sachet retail buying habits. Frost & Sullivan data compiled for the listing shows roughly 40 percent of borrowing Filipino adults relied on informal credit in 2025, including unregulated 5-6 money lenders who demand 20 percent nominal interest rates on short-term advances.

Digital wallets across Southeast Asia have shifted from simple payment rails to balance-sheet lending to offset margin compression on transfers and merchant settlements. Singapore-based Grab, Indonesia’s GoTo and regional digital banks all pursued similar transitions, yet few command the domestic user dominance GCash holds in its home market. By pushing loan sizes down to 100 pesos, Fuse Financing mirrors the Philippine retail distribution model of selling daily goods in small packets.

This micro-lending model shifts customer acquisition costs almost to zero because borrowers already transact on the core app. Traditional Philippine banks struggle to service sub-1,000-peso tickets profitably due to branch overheads and manual underwriting costs.

Source link