GCash Market Share and User Activity Analysis

GCash, the leading mobile payment platform in the Philippines, has shown significant growth in market share and user activity in recent years. It is analysed below in a number of dimensions:

I. Market share performance

1. industry dominance

• GCash dominates the Philippine digital wallet market, according to Bangko Sentral ng Pilipinas (BSP) data for 2023Share of 75% and above, well ahead of PayMaya's (now Maya's) 20% and other competitors.
• It has a market share of over 80% in the code-sweeping payment scene, covering over 300,000 offline merchants nationwide.

2. Subscriber growth

• Registered users exceeded81 million(Q4 2023), equivalent to 90% of the adult population of the Philippines
• Monthly Active Users (MAU) of 45 million, up 35% (2022 vs 2023)

II. Core activity indicators

1. frequency of use

• DAU/MAU ratio of 62%, higher than the Southeast Asian peer average (~50%)
• Average number of daily transactions exceeded 18 million, a five-fold increase from the pre-epidemic period

2. Scene penetration

• Percentage of high-frequency scenes::
  • P2P Transfer: 42%
  • QR Consumption: 28%
    -Bill Payment: 18%
    -Invest Money: 12% (GInvest products growing at a significant rate)

3. Adhesion characteristics

• ARPU growth of 40% year-on-year ($6.5 by 2023)

III. Key factors driving activity

1. Scene ecological expansion

• Offline payment networks: Over 500,000 partner merchants (including headline retailers such as 7-Eleven and SM Supermarkets), covering high-frequency scenarios such as food and beverage, transport (e.g. JoyRide), and healthcare.
• Government cooperation: Support social security contributions (SSS), tax payments (BIR), and be the main channel for the disbursement of government cash assistance (e.g. 4Ps programme).
• Cross-border payments: Connect with Alipay+ to support consumption in Japan and South Korea to enhance the frequency of use by high net worth users.

2. Product innovation strategies

• FinTech Service Matrix::
  • GCredit: Credit users exceeded 10 million and bad debt ratio was controlled below 3%;
  • GInsure: Insurance penetration up to 15% of MAUs;
  • GInvest(Fund Investments) AUM annual growth 200%.
• social fission gameGGives' pay-as-you-go feature boosted average monthly transactions by 25% for young users.

3. Sinking market penetration

• Agency network expansionGCash Pera Outlets: Through GCash Pera Outlets, it reaches over 25,000 community outlets in rural areas, addressing the pain point of recharging for the unbanked;
• Dialect optimisation: Support for local language interfaces such as Tagalog, Cebuano, etc., with the share of non-metropolitan area users rising to 431 TP3T (321 TP3T in 2021).

IV. Competitive comparisons and challenges

V. Projections for future growth

1. Open Platform Strategy: API open to attract 3rd party developers (currently only 200+ integrated APPs, compare to Gojek Indonesia's over 800 services);
2. Credit deepening:: GCredit targets expanded to include the MSME lending market;
3. Web3 Layout: NFT wallet in beta, may seize the lead in the Philippines' cryptocurrency payment circuit.

Data Recommendation: BSP expects the digital payment penetration rate in the Philippines to reach 50% by 2025 (currently 35%), of which GCash is expected to capture 60%-65% if it maintains its current growth rate. (Need to monitor the impact of regulatory changes on e-wallet KYC requirements)

VI. In-depth analysis of user activity

1. User stratification and behavioural characteristics

• High-frequency users (5+ transactions per week) account for 30%::
  • core group: Young office workers (25-35 years old), small and micro businesses;
  • Main behaviours: P2P transfers, code-sweeping shopping, phone bill top-ups.
• Medium-frequency users (1-4 times per week) as a percentage of 45%::
  • typical scenario: Bill payments (utilities), government service payments;
  • growth potential: Conversion to HF via GCredit/GInvest.
• Percentage of low-frequency users (<1 time per month) 25% ::
  • Pain Analysis: Lack of usage scenario awareness or trust, which needs to be enhanced through agent outlet education.

2. Differences in time and geographical activity

📊 peak usage time:

• Morning peak (7AM-9AM):: P2P transfers (salary/cost-of-living distribution);
• Evening Peak (6PM-8PM):: QR consumption (catering/convenience shops).
  🌍 regional distribution:
  |Regions|MAU Share|Specialised Scenarios|Growth Rate (YoY)|
  |—|—|—|—|
  |Metro Manila|38%|High-end retail, financial services|20%↑|
  |Visayas|27%|Fishing Vessel Fuel Procurement, Remittance Receipt Points|45%↑|
  |Mindanao|18%｜Government Subsidy Disbursement｜60%↑｜

VII. Risks and challenges

🔴 1. Escalating regulatory pressures

• BSP's proposed hike in e-wallet reserve ratio to 30 per cent from 20 per cent could squeeze GCash interest income;