FILIPINOS who don’t have a credit record standing yet may take advantage of Globe’s cashless payment system to earn one and be eligible for micro loan applications in the future.
This is one of the benefits that Globe’s GCash is introducing, as it pushes the country towards financial inclusion and a cashless nation.
“Over the long-term, this creates financial inclusion for Filipino people, simply because as we gain records of your financial transactions, we are now able to give you a credit score, together with your telco transactions,” said Globe president Ernest Cu on Tuesday.
He said that the company can now loan money in micro amounts automatically because a user’s transaction record makes one eligible to apply for a loan and pay through Gcash.
“That way, you don’t have to enter a bank. This creates a fantastic opportunity for financial inclusion,” he added.
Of the over 100 million people in the Philippines, around 75 to 80 percent do not have bank accounts. About 90 percent don’t have credit scores and 40 percent don’t have physical access to banks, the reason many Filipinos opt to borrow money through informal lenders.
Cu said they are taking advantage of this sector because while they don’t have access of bank branches, they have reach because they have data.
Globe’s data showed that there are about 33 million unique smartphone users in the Philippines as of 2017 and 60 million Filipinos are online users.
GCash has expanded its services to Cebu, starting off with the 50 merchants in Ayala Center Cebu.
The cashless payment option permits consumers to conduct transactions easier and faster, giving them the convenience to shop and dine with the GCash app on their smartphones and without the need for cash.
GCash is being operated by Mynt, a fintech company owned by Globe Telecom, Ant Financial, and Ayala Corp.
Cu on Tuesday visited the GCash partner stores for a ceremonial cashless payment demonstration. Some of the establishments that are now accepting GCash include Abaca Baking Company, Bo’s Coffee, Casa Verde, Chika-an, and Rose Pharmacy.
“People who use it are amazed by its speed, its convenience. That’s why we only get little resistance from merchants. The problem we need to solve is the cash in. We are deploying machines so people can load up their wallets,” said Cu.
To use the service, consumers can download the GCash app on their smartphone and refill their GCash wallet at any Globe store, selected partner outlets or touch pay machines.
Around 100 stores in Ayala Center Cebu are expected to embrace cashless transactions before the year comes to a close. Besides Ayala Center Cebu, consumers can also use GCash at any of the Ayala Malls nationwide.