Finance

Pangilinan on Maya IPO: GCash Still Holds the Throne in Philippine Digital Wallet Market

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PLDT chairman Manuel V. Pangilinan admitted that PLDT’s Maya has a long way to go against its rival Globe’s GCash when asked about the public listing of Maya via an initial public offering.

He realized this while at a beach in Calatagan, Batangas, where he recognized the popularity of GCash.

“What is the vocabulary, the vernacular for digital wallets? It’s not Maya, right?” Pangilinan told the reporters.

Thus, the PLDT chairman stated that Maya going public reflects a “misplaced optimism.”

“They’re not in a position to be IPO’d in the near future, period. I mean, they have to demonstrate that they can be profitable starting 2025 and to be consistently profitable for at least another year. So to dream of an IPO in the next two years is simply an illusion… Plus the fact the market here is not conducive to an IPO,” explained Pangilinan.

Despite this, he mentioned that Maya is on track to reach a break-even point. Although GCash is more memorable, Maya outperforms in the background. After all, Maya is not a digital wallet but a digital bank.

At the recent meeting of the telco’s shareholders, Pangilinan announced that Maya gained 3.4 million depositors and PHP 29 billion in deposits in the first quarter of 2024. This is an increase of 95% and 40%, respectively, compared to the previous year.

Pangilinan emphasized that the market will ultimately determine the fintech’s decision to go public based on its investment potential.

He stated that Maya could start making a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) by the fourth quarter of 2024. However, it would not be ready for an IPO (initial public offering) in the near future.

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Tech Beat Philippines

Tech Beat Philippines is the social media news platform for all things technology. It is also a part of the GEARS section on Daddy's Day Out.

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