Gcash issue 2023 Research and Witten Review

HISTORY and ISSUE

GCash was launched in October 2004 as an SMS-based money transfer service, GCash was Globe
Telecom's response to Smart Communications' Smart Padala, aiming to cater to Filipinos without access
to formal banking. Initially, users could convert cash to e-money through outlets like sari-sari stores,
with a ₱1.00 transaction fee. Transitioning to a digital cashless system, GCash introduced its mobile
application in 2012, moving away from physical outlets. Despite a partnership with Facebook in 2017,
later dissolved due to shifts in Facebook's fintech strategy, GCash remains a popular payment method
for offline services in the Philippines, particularly in retail and events. As of 2022, there were an
estimated 58 million active e-wallet users in the Philippines, projected to rise to 81 million by 2025. Over
the years, GCash expanded its features, including QR-based payments, mobile and gaming credit
purchases, online checkout, barcode cash-in, bills payment, and support for InstaPay, enabling interbank
transfers. Partnering with CIMB Bank Philippines, GCash piloted GSave, a high-yield savings account,
later evolving into GSave Marketplace with options from CIMB Bank Philippines, BPI, and Maybank
Philippines. In 2021, GCredit, initially powered by Fuse Lending, transitioned to CIMB Bank. GCash also
revamped its remittance service, now known as GCash Padala, making it available to non-app users
through 2,000 partner outlets nationwide. Mynt, GCash's parent company, achieved double unicorn
status in November 2021, raising $300M at a $2B valuation. Expanding its reach, GCash Jr., tailored for
users aged 7 to 17, was introduced in 2022.

During its rapid growth phase from 2017 to 2020, GCash encountered frequent service disruptions
lasting between one and eight hours, leading to transaction errors such as failed or delayed payments,
incorrect debits, and missing funds. Users voiced dissatisfaction with customer support, prompting the
formation of online groups for assistance. Furthermore, there were reports of targeted fraud,
particularly phishing activities, prompting GCash to implement "Double Safe" in 2023, requiring facial
identification from customers. The notable scandal in 2023 involved hundreds of users, including public
figures like comedian Chad Kinis and Laban TNVS President Jun De Leon, reporting missing funds from
unauthorized bank transfers. Despite GCash's denial of a hacking incident, funds were redirected
without customer permission. Following investigations by regulatory bodies like the Cybercrime
Investigation and Coordinating Center and the National Privacy Commission, it was confirmed that the
security breach resulted from phishing attacks, exploiting vulnerable GCash users through online
gambling websites.

With regards to these circulating issues about GCASH, I still find the application convenient to use
when paying bills and in transfering money. Well, considering the different security policies that they are
implementing I guess that for a an ordinary user like me, there's nothing to worry about and based from
my experience, there may be errors sometimes but the money in my wallet were intact after the errors
were fixed. So, in my opinion, when you have a lot of funds better keep it in the bank in order to avoid
being scammed because whether we like it or not, those assholes I mean people are somewhat smart
when it comes to manipulating and hacking accounts just to get the money they want. Sometimes, no
matter how strong the security, they were able to get through it. And make sure not to be easily
deceived with text messages or links that are not verified or legit. Be vigilant at all times and secure your
funds well.