By November 2022, 289 fintech startups Philippines companies were developed, representing a significant increase from the numbers in 2017. Financial technology firms grew exponentially due to the COVID-19 pandemic, and they continue to do so as the government pushes its citizens to adopt digital payments.
The lending sector accounted for 27% of the total share of firms as Filipinos looked to fund their monetary needs. The most popular digital financing solutions were Cashalo, Digido, and Pesoloan. eWallets are also in use as people make their online purchases.
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Here is a closer look at the leading fintech startups in the Philippines:
Global Fintech Innovations (Mynt)
As the world moves towards a cashless future, Global Fintech Innovations (Mynt) is playing its part in providing digital financial options like mobile money. It also serves Filipinos through micro-loans, remittances, payments, and other business solutions. In October 2023, Mynt acquired a stake in electronic payment service provider ECPay to exploit its untapped potential.
Thus far, Mynt has raised USD 475 million from seven investors. They include Warburg Pincus, Itai Tsiddon, Globe Telecom, Ayala Corporation, Insight Partners, Amplo, and Bow Wave Capital Management. Its last funding of USD 300 million helped the company meet its mission of finance for all. Mynt is developing various fintech solutions, such as Buy Now Pay Later (BNPL), cash loans known as GLoan, gamified environmental stewardship called GForest, and more.
Voyager Innovations
Growth markets need tech solutions, so Voyager Innovations aims to make the digital economy a reality by introducing fintech tools that society can adopt. In 2022, the company raised USD 210 million to boost the PayMaya and MayaBank ecosystems. MayaBank services like savings will be offered on PayMaya’s platform, which would expand its financial offerings that include cryptocurrencies, investments, insurance, and others.
Voyager Innovations has raised USD 712 million in total from 11 investors. They include Kohlberg Kravis Roberts Japan, Susquehanna International Group (SIG), IFC Emerging Asia Fund, EDBI, Tencent, PLDT, and others.
PayMongo
Payment gateway PayMongo provides products and services that enable companies to process online payments. It allows users to manage and reconcile transactions and move money to eWallets and banks.
Thus far, PayMongo has raised USD 45.7 million in three funding rounds from 12 investors. They include Justin Mateen, Peter Thiel, JAM Fund, Y Combinator, ICCP Venture Partners, Stripe, Kaya Founders, Lisa Gokongwei, Stripe, Soma Capital, and Global Founders Capital. The company raised USD 31 million to invest in their merchants’ successes and to help them move their money online.
Recently, PayMongo partnered with digital bank GoTyme Bank to simplify the loan application process. It removes the paperwork and digitises the entire process, making it easier to transfer funds once disbursed.
Philippine Digital Asset Exchange
Trading platform Philippine Digital Asset Exchange (PDAX) enables customers to buy and sell the world’s top cryptocurrencies. The central bank (the Bangko Sentral ng Pilipinas) regulates and licences the exchange. It offers the best prices due to its deep liquidity, and it is a user-friendly site with intuitive and top-notch transacting features.
PDAX has raised USD 63.6 million from five funding rounds so far. Its investors include Kingsway Capital, Ripple, Cadenza Ventures, DG Daiwa Ventures, BEENEXT, and Tiger Global Management. It got the funding to build financial solutions for the metaverse, such as plug-and-play products in the Play-to-Earn (P2E) segment.
Growsari
Finally, Growsari is a tech-enabled B2B platform that enables small stores like the sari-sari stores to transform into larger service hubs for the local Filipino communities. It provides affordable on-demand inventory and offers generous credit lines to companies needing funding. The platform also generates data, insights, and analytics for businesses to visualise new information.
Thus far, Growsari has raised USD 91.5 million in over five rounds from 12 investors. They include ICCP Venture Partners, Kohlberg Kravis Roberts, International Finance Corporation, Wavemaker Partners, Endeavour Catalyst, and Pavilion Capital. The USD 77.5 million it made in its last funding round was for national expansion.
Future of fintech in the Philippines
The leading fintech startups above show the country’s massive potential as it adopts digital payment and financing solutions. Options like cryptocurrencies demonstrate that there is more to come in the country as technologies like blockchain become more commonplace. Of course, the government will have to ensure citizens obtain crypto in an environmentally friendly way.
According to Statista, the fintech startups Philippines innovators are producing will impact the industry and bring in more than 60 million users by 2027. Digital investments look likely to be the largest market as 2023 ends. However, expectations are that the online payments segment will surpass it, with growth opportunities like eWallets as more Southeast Asians get access to smartphones.
The government must continue its drive to push Filipinos to be comfortable adopting fintech solutions to help improve their lives if they wish for the sector to continue to grow and address the issues of underbanking in the country.