The Philippines' adoption of digital financial services, aside from the inevitable trend with the digital space, has been further accelerated and triggered by the COVID-19 pandemic. The digital transformation of the Philippines' financial sector has also been fueled by a young urban population and rising mobile usage. Filipinos are known to be demanding users of smartphones through different digital platforms.
This, perhaps, can persuade most business owners (both locally and abroad) to have to invest Philippines spree.
But first: What are Fintech Companies?
Mobile Applications, software, and other technologies designed to enhance and automate conventional forms of finance for both corporations and individuals collectively fall under the umbrella term of "financial technology," or FinTech. FinTech can range from simple mobile payment apps to sophisticated blockchain networks that store encrypted transactions.
To further discuss, Fintech is any company that modifies, enhances, or automates financial services for consumers or corporations. Peer-to-peer payment systems, mobile banking, like Venmo and CashApp, automated portfolio managers similar to Wealthfront and Betterment, and trading platforms such as Robinhood are a few examples. It also applies to the creation and exchange of cryptocurrencies (e.g., Bitcoin, Dogecoin, Ether). In the Philippine setting, one can associate such a term with Gcash, Maya (formerly known as PayMaya), and PayMongo, which will be further discussed later in this article.
How did it start?
Fintech might seem to represent a fresh round of technological advancements. However, the concept has existed for some time. Thanks to the development of early credit cards in the 1950s, users no longer need to carry physical currency in their daily lives. With this, they are typically regarded as the first fintech products made available to the general public. Mainframes used by banks and online stock trading platforms have been incorporated due to Fintech development. PayPal, one of the first fintech companies that run entirely online, was founded in 1998. Mobile technology, social media, and data encryption have further transformed this innovation. Now, everyone is routinely using social media-hosted payment choices, mobile payment apps, and blockchain networks as a result of the fintech revolution.
How does Fintech work?
Despite the complexity of the fintech concept, it is possible to have a solid grasp. FinTech simplifies financial transactions for individuals and organizations, increasing accessibility and often lowering costs. It can also be applied to businesses and services that enable extremely secure internal network transactions using AI, big data, and encrypted blockchain technology.
Fintech generally aims to eliminate procedures that can be superfluous for all parties engaged in the transaction process. For instance, you can send money to other individuals at any time of day using a smartphone service like CashApp or Venmo to send it immediately to their chosen or respective bank account. However, the recipient would need to go to the bank to deposit the funds or money if the sender choose to pay with cash or a cheque, which is an inconvenient way of transferring money.
Now that you have grasped what FinTech companies are and learned how they operate. Here are some of the top and trusted Fintech Companies in the Philippines you can explore. May it be for personal business transactions or just for personal experience, this may help most of the "fintech lending companies Philippines" queries that everyone is figuring out.
Fintech Companies Philippines: Top 7 companies you can TRUST
What "fintech lending companies in the Philippines" should every Filipino trust?
Global Fintech Innovations
A division of Global Telecom, a significant provider of telecommunications (telco) services in the Philippines, is Globe Fintech Innovations, doing business as Mynt. The business offers banking services and runs the wildly popular GCash app.
The most well-known financial app in the Philippines is GCash. It enables users to buy prepaid airtime easily, pay their bills, send and receive money throughout the nation, shop at 4.5 million partner stores and social sellers, and access savings, credit, insurance, and investment opportunities from the comfort of their smartphones.
Global Fintech Innovations, established in 2015, is regarded as a pioneer in digitizing payments and other financial services in the Philippines. According to Ernest Cu, the CEO of Global Telecom, who spoke to Bloomberg in March, the company now intends to broaden its investment offerings to include trading in stocks and cryptocurrencies. It is also thinking about making an initial public offering (IPO).
Voyager Innovations
One of the top technology firms in the Philippines is Voyager Innovations, the digital division of PLDT, the largest telco business in the country by market value in Southeast Asia. Voyager Innovations focuses on digital and financial inclusion.
Maya (formerly known as the PayMaya Philippines), a Voyager Innovations division specializing in Fintech, offers integrated digital financial systems for consumers, businesses, communities, and the government.
More than 38 million Filipinos now access financial services thanks to Maya's consumer platforms. Through a network of more than 300,000 digital touchpoints across the country, they may pay, add money to their accounts, cash out, or remit money.
GrowSari
GrowSari began operating in 2016 as an ordering platform for around three cities' worth of sari-sari retailers or neighborhood convenience stores. Since then, the company has rapidly grown into financial services, logistics, and other micro, small, and medium-sized enterprises (MSMEs)/non-sari-sari store formats. In 220 municipalities today, GrowSari powers the management, growth, and analytics infrastructure.
GrowSari's platform offers credit and inexpensive, on-demand merchandise. It creates crucial information and insights into how these stores operate, giving manufacturers and distributors a solid foundation for their plans and advertising campaigns.
GrowSari has also integrated several microservices, including telco load, bill payment, e-commerce, Wi-Fi, and other e-services, enabling store owners to consolidate their funds into a single wallet and grow their businesses.
Philippine Digital Asset Exchange (PDAX)
One of the top cryptocurrency exchanges in the Philippines is run by the Philippine Digital Asset Exchange (PDAX), which was founded in 2017. PDAX enables customers to trade well-known cryptocurrencies and digital assets like bitcoin and ether.
The company's platform lets users deposit and withdraw money online and offline. It also offers guaranteed liquidity and various order types, including limit and stop orders, allowing traders to receive fair pricing, immediate order execution, and simple market trend following.
PDAX was granted a license by the central bank in 2018 and launched in the Philippine market the same year.
Since the beginning of the lockdowns, the company reported in February 2021. It has seen a 35-fold increase in user sign-ups. It states that it has 500,000 users. Recently, it introduced PDAX Prime, an unique service catered to experienced Filipino cryptocurrency investors. It gives access to a range of benefits and services, including over-the-counter (OTC) trading, individualized support, and access to only certain types of information.
PayMongo
PayMongo, a platform for managing payments through credit cards, bank deposits, e-wallets, or cash, was established in 2019. The company works with companies of various sizes but focuses primarily on MSMEs.
The PayMongo API is an easy-to-integrate solution that reduces integration time to a few lines of code. PayMongo Links enable businesses to collect one-time payments through chat, SMS, and email; PayMongo Pages are always-on, customized payment pages; and E-commerce Plugins. These directly integrate with well-known e-commerce platforms like Shopify, PrestaShop, Woocommerce, or Magento websites are just a few of the products offered by PayMongo.
SeekCap
This platform aims to close the gap between banks and SMEs. SeekCap is connected to one of the largest banks in the Philippines, UnionBank. The website makes acquiring a loan easier and less stressful, enabling firms to grow or prosper.
All commercial enterprises require funding and effective cash flow management. Securing loans or other forms of short-term financing can be challenging for SMEs. It can be difficult for certain firms to find the finance they need because traditional banking in the nation has rigorous qualifying requirements.
JustPayto
JustPayto is a registered provider of commercial and consumer money transfer services. The startup, founded in 2015, is working to create a frictionless ecosystem with e-wallets and financial institutions to provide easy inter-bank, inter-institution, inter-platform, and inter-currency money transfers.
With JustPayto, you may accept various payments without dealing with various banks or complex apps. Multiple disbursement methods, including credit/debit cards, bank fund transfers, internet banking, over-the-counter (OTC), e-wallets, and cryptocurrencies, are made easier to use by the app.
"Investing Philippines" is no longer a term that connotes headache for business owners - hop on your search engines and type "fintech companies the Philippines" and let the choosing-where-to-invest begins.
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