GCASH Sa Pilipinas: Pagbabago Ng Negosyo Sa Parehong Dulo...GCASH in the Philippines: Changing Business on Both Ends

Globe Telecom’s G-Xchange Inc “GCASH” program has transformed business transactions in the Philippines.  Globe Telecom is a cell phone service provider in the Philippines that has partnered with Rural Bankers Association of the Philippines Microenterprise Access to Banking Services (RBAP-MABS), and USAID Philippines. This union resulted in the use of the “GCASH” platform, which allows cell phone users to deposit, withdraw and transfer money (amongst other banking functions) via cellular phone. 

Jamera Macmac is the owner of a microenterprise business in the Philippines who has is taking advantage of the Globe Telecom GCASH mobile banking program in order to expand her business.  Ms. Macmac sells pearls at the market and has seen her business transactions increase dramatically since she started to accept payment for her jewelry via the GCASH.  From the comfort of her own stand at the market Jamera is able to deposit, transfer, and withdraw payment money she has received via her GCASH mobile wallet on her cell phone.  She is also able to pay utilities bills from the very same GCASH platform on her phone.

In addition to saving an abundance of time from avoiding spending time traveling to the bank and doing other finance associated errands, Ms. Macmac remarks that, “once people pay [her] in GCASH, [she] can send the money to [her] family who live far away…and can pay water bills with GCASH so [that she doesn’t] have to spend hours in line anymore.”

Globe Telecom has developed a variety of portals and websites online to assist, support and train GCASH users.  Globe Telecom subscribers can choose from a menu of various options to receive help with their accounts or to access other features provided by the company.  The company provides a variety of “how to videos,” aimed at simplifying the use of GCASH technology, and making it more accessible to all in an effort to augment its user base.

Globe Telecom plays into the national Filipino sentiment in the divisions of their website dedicated to ‘Filipinos at heart,’ who are abroad and miss the homeland.  This is strategic, less than subtle ploy to increase the remittances sent using the GCASH platform.

By appealing to small business owners, national sentiment, and creating partnerships with various banks, GCASH use is expanding, and serving to improve both the business of Globe Telecom and of the small microenterprise business owners who use the mobile banking technology.

 This mutually beneficial mobile banking platform is explained and described in the following video (http://www.youtube.com/watch?v=rvwgNrGztOc)

by Larry Bat-Ao, a GCASH agent in Cantilan.
 

In addition to the ways that GCASH is benefiting local Filipinos and making it easier for them to complete business transactions, in a July 2011 Business World Online interview, Mr. Baltao, a representative of Globe Telecom explained that the company has contracts and relationships with 76 rural and commercial banks in the Philippines, enumerating the Bank of the Philippine Islands, Philippine National Bank and Asia United Banking Corp. among the 76. 

In addition, Globe Telecom struck a deal with the Filipino Department of Social Welfare and Development and the Land Bank of the Philippines to issue funds under the government’s cash transfer program.  Baltao stresses that Globe Telecom, specifically in regard to its GCASH platform will continue to expand its relationships with government agencies.

Baltao states the company’s goal is “to have all subscribers [of Globe Telecom services] use the GCASH walled.”  This means expanding GCASH users from 1 to 26 million. This is a lofty goal, but completely within the scope of reality, as based upon the success of other international GCASH counterparts, such as MPESA in Kenya.  The reality of this possibility at the growth in GCASH users can be seen in the fact that the services have gone from averaging less than $100 million of transfers a month in the past two years to over $100 million a month in 2011.  Globe Telecom plans on increasing outlets/access points of GCASH services from 9,000 nationwide to 12,000 by the end of the 2011.

While the expansion of business interests often results in damaging the success of local business counterparts, it seems that GCASH programs in the Philippines will continue to grow and will remain mutually beneficial to small business in the Philippines as well as to the corporate interests behind the program.  Overall, mobile banking technology seems to be improving the efficiency of businesses in the Philippines as owners save time, efforts and money itself by utilizing new GCASH technology to perform banking functions.