Financial Inclusion

  • About the book
    • Carol Realini
    • Karl Mehta
    • Book Reviews
  • Audiobook
  • Speaker Info
  • Blog
    • Financial Inclusion
    • FinTech
    • Mobile Banking
    • Entrepreneurship
  • Newsletters
  • Contact
    • Get Involved
Home » Mobile Banking » GCash Mobile Banking Continues Huge Growth in Philippines

February 22, 2016 By Brian Prows

GCash Mobile Banking Continues Huge Growth in Philippines

gcash mobile banking Philippines rice fields

If you’ve read other posts on OpenFinInc or Financial Inclusion at the Bottom of the Pyramid,  you’ve discovered GCash mobile banking as an example of worldwide financial inclusion. Mobile transactions, enabled by entrepreneurial firms, provide millions of people in emerging markets with financial transaction ability on their handsets. Without entrepreneurial firms like GCash, citizens from Africa to India would still use cash exchanges.

I interviewed Paolo Baltao, President of G-Exchange about its GCash mobile money service in 2014. A subsidiary of Globe Telecom in the Philippines, G-Exchange operates GCash,  providing mobile financial transactions to over one million Filipinos, spread across thousands of islands stretching into the heart of Indonesia. 

Philippines – GCash Mobile Banking Homeland

To understand GCash, here’s a brief article about this vast group of islands.

At the entrance to Indonesia, the Philippines spreads across over 7,000 islands. Yet only 2,000 have inhabitants.

You’re living in the fields of the Philippines, growing sugarcane, bananas, Palay (rice) and corn. You and your family get paid in pesos once a week.

You don’t have a checking account; in fact, you’re unbanked. Cash in, cash out, one of 2.5 billion people on Earth who live without financial services.

Transferring money without a bank account is burdensome, taking two hours or more out of the day for transportation and waiting in line. And BILLIONS of dollars flow into the Philippines from far-a-way countries to relatives.

Every few months your cousin, one of ten million Filipinos who works overseas, sends you a cash remittance to make ends meet (10-15% paid to Western Union or another payment processor with high fees).

Mobile Transaction Solutions – Easy and Economical 

Considering that 80% of the Filipino population is unbanked or underbanked, having a telco-enabled banking service has lessened the burden of consumers carrying cash. More than that, Filipinos using GCash’ services to save time and money while they run small businesses or work for other entrepreneurs.

With a GCash mobile banking account, consumers easily deposit pesos into electronic wallets. It’s safe, secure. Customers top off phone minutes and pay bills via mobile phones. When relatives send remittances, money goes directly into mobile wallets at lower transfer fees than other commercial services. Filipinos now control their hard-earned pesos without worrying about bank branches nearby.

If GCash members have relationships with banks, they can easily transfer money from their accounts directly into GCash mobile banking accounts. Paolo says The Central Bank of the Philippines has supported GCash mobile money services since its beginning.

To convert cash into GCash costs nothing. Cashing out, is 1.8%, 

They’re 8000 GCash mobile money services outlets and ATM’s for bank customers near a terminal

GCash Recent Developments – Amdocs & Bux.com Partnerships

Amdocs, a U.S. technology firm, recently partnered with GCash to enhance its services:

Amdocs said the enhancement will enable G-Xchange Inc.(GXI), the subsidiary of Globe which operates GCash, to expand and scale up its capabilities to address evolving mobile financial services market needs such as delivering bulk payment for salaries and government disbursements.”

Bux.com, another vendor, provides services to Filipinos without bank accounts.

Filipinos who lack bank accounts or without banks in their area  can use bills payment, mobile phone top up, and e-commerce. Bux.com and GCash help unbanked Filipinos easily open accounts and handle transactions.

Learning More About Worldwide Financial Inclusion

What do you think about this article, mobile banking and financial inclusion? Here are five things to do that will increase your knowledge and spread the word:

  1. Write a comment below. Share your thoughts with other readers about GCash mobile banking
  2. Read the linked articles in this post. I chose them to “fill in the gaps.”
  3. Share the article with your social media connections by clicking one of the buttons below
  4. Subscribe to our informative email newsletter containing articles and information not published here. Complete the form to the right.

Explore your financial future. Click below to learn more about FinTech, mobile, and more:

financial inclusion at the bottom of the pyramid

 

 

Share this post

  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to email this to a friend (Opens in new window)

Related

Filed Under: Mobile Banking Tagged With: gcash, philippines

Search

Informative Newsletter (2X Month)

FREE first chapter of Financial Inclusion at the Bottom of the Pyramid for newsletter subscribers.

Concise news and insights about FinTech, financial services, mobile, and more. Freshly delivered to your inbox. Your email address is never shared.

Recent Posts

  • Fintech Artificial Intelligence Expanding Rapidly in Financial Services
  • Fintech Innovation Infographic Summarizes Growth, Sectors & Directions
  • Global SME Finance Forum: Carol Realini Speaks in China
  • FinTech Growth Up as Bitcoin/Blockchain Funding Rises
  • China SME Growth Linked To Exciting New FinTech Companies
  • Sustainable Development Goal Pioneer Karl Mehta
  • Emerging Market Internet Trends Show India Web Explosion
  • Will India FinTech Startups Create a Cashless Society?
  • Financial Exclusion USA: “Brother, Can You Spare a Bank?”
  • Why is Worldwide Financial Literacy–Rich or Poor–33%?
  • Emerging Country Smartphone Growth Spurting Forward
  • Financial Inclusion Book Shares New Vision – Free Chapter
  • FinTech Industry Booming, Fragmenting Worldwide
  • GCash Mobile Banking Continues Huge Growth in Philippines
  • Millennial Financial Marketing Growing: FinTech Targets Gen-Y

Informative Newsletter (2X p/Month)

FREE first chapter of Financial Inclusion at the Bottom of the Pyramid for newsletter subscribers.

Concise news and insights about FinTech, financial services, mobile, and more. Freshly delivered to your inbox. Your email address is never shared.

Book

As incredible as it may seem in this hyper-connected, technologically advanced era, half the planet's population exist as "Financial nomads"—those who nourish and shelter themselves without using traditional banking services. Read More…

Audiobook

We stand at a time when we have the opportunity to leverage the breathtaking advances that have been made in communications technology during the past twenty years, and use these advances to reconfigure today’s obsolete financial services system. Listen to a Sample...

Follow Us On:

Facebook
LinkedIn
Twitter
You Tube

Search

Discover

  • Entrepreneurship
  • Financial Inclusion
  • FinTech
  • Mobile Banking

Copyright © 2021 · - Authors of Financial Inclusion at the Bottom of the Pyramid - All Rights Reserved

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.