GCash, the Philippines' leading e-wallet with 41.5 million active users, is now setting its sights on the informal lending sector, often referred to as '5-6' lending, as it seeks to expand its financial services portfolio.
Executives from Mynt, the parent company of GCash, revealed at a recent investor briefing that while the platform boasts a significant user base, only 7.5 million are currently active borrowers. This disparity highlights a major growth opportunity.
We still see a lot of opportunity to grow. Informal lending is the biggest competitor, and the largest source of business on the B2C side.
Tony Isidro, President and CEO of Fuse Financing
Research indicates that approximately 40% of Filipino adults with loans relied on informal lending sources in 2025. This includes borrowing from family, employers, and known '5-6' lenders who charge high-interest rates.
- GCash plans to allocate 60% of its IPO proceeds to enhance its loan offerings.
- Lending currently contributes 35.8% to Mynt's adjusted revenue.
With the recent IPO valuing Mynt at around P442 billion, the company aims to use a portion of the raised funds to bolster its lending capabilities. Mynt's lending arm, Fuse Financing, is pivotal in this strategy.
However, expanding into this sector comes with risks, particularly concerning non-performing loans (NPLs), which stood at 4.9% in June 2026, a notable improvement from highs of 9.2% in 2023.
To mitigate risks, Mynt is leveraging technology, utilizing AI tools like GScore to assess borrower creditworthiness and employing reminders through an AI voicebot named GINA.
As GCash prepares for its IPO launch on October 20, it must balance the promise of growth with the realities of high-risk lending. The success of this venture could redefine the landscape of financial services for underserved Filipinos.