Globe subsidiary urges small e-commerce players to forge alliances to be competitive

MANILA, Philippines - G-Xchange Inc. (GXI), a wholly-owned subsidiary of Globe Telecom, has underscored the importance of forging strong local and global alliances for small players to succeed in the e-commerce market.

GXI president Rizza Maniego-Eala said the multiplier effect is greater if the resources of a company are combined with others.

For instance, she said GXI, using its GCash mobile payment platform, has tied up with banks and local merchants for various services such as remittances, savings, loans, bills payments, among others. Such arrangement allows GCash to grow the market and also to expand sales force.

“For a business to develop, we have to follow a roadmap but it will not be possible if it is not aided by solid partnerships. Usually, the equation is one plus one equals two but with partnerships, one plus one equals three, four, or five. I think we cannot stress enough that when starting a business or growing one, partnerships are very important especially since the markets are going global,” Eala explained.

As a result of such tie-ups, GXI was able to build a robust e-commerce ecosystem using the GCash platform which allows it to use C2C (consumer-to-consumer), B2C (business-to-consumer) and B2B (business-to-business) applications. Thus, the GCash mobile wallet was transformed from being just a simple product, into a service that traverses many entities and revenue streams across the board, Eala said.

“Together with continued partnership is the constant thrust for business development. Because as we work with our various partners, there are lots of ideas that will come through and this combined with customer feedback, will result to product innovation,” she added.

Aside from domestic partnerships, Eala also highlighted the need for global partnerships. By reaching out to global experts, small businesses will not only have access to funding support but can likewise, learn about global best practices, she said.

Eala said GXI, for its part, is fortunate to get financial and technical assistance from the Bill and Melinda Gates Foundation through the Consultative Group to Assist the Poor’s (CGAP) Technology Program granted last year to test new mobile commerce models in the rural areas.

In return CGAP and GXI will share with the international community what they learned during the various implementations tested in the low income areas of Bohol, Palawan and Surigao del Norte on using wireless technology to increase access to affordable financial services by underprivileged people in these rural markets.

 “For many who are trying new things or testing new boundaries, there are certain foreign grants which can be used to explore areas that would be too risky for the traditional funder. In GXI’s case, what we committed to CGAP and the Gates Foundation is for us to share globally our learnings from this undertaking,” she explained.

GXI is a pioneer in m-commerce in the Philippines. Since launching GCash in 2004, GXI has established a wide network of partners that includes government agencies, utility companies, cooperatives, insurance companies, rural banks, remittance companies, universities, and commercial establishments which have agreed to accept Gcash as a means of payment for products and services.