I’ve seen a lot of guides about GCash users, but not so much about GCash merchants. Currently, there is no better time when e-commerce has a lower barrier for entry and everyone is delving into e-commerce due to the pandemic.
It’s a good thing that GCash allows you flexibility since as a digital wallet app, payment transfers can be easily managed due to it being cashless. This is an advantage for freelancers and online sellers.
GCash users (and other digital wallet users) are also a big market to tap for SMEs and corporations because of the increasing user base.
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Setting up a Business with GCash
I’m thinking of setting up a business. What would I need to do?
Here is an in-depth guide for setting a business from the ground up. You need to do your due diligence.
As for government requirements, you will need to apply for a DTI Business Name, and your articles of incorporation from SEC if you are a partnership or corporation. Additionally, you will need to register for a barangay clearance, a business permit with your LGU, and ultimately a TIN with the BIR.
If you have employees, you would need to register with PAG-IBIG, Philhealth, and SSS as an employer as an additional requirement.
What are the benefits of going with GCash as a merchant?
As GCash is currently the most mainstream cashless app in the Philippines, you will be able to tap on the biggest slice of that pie. As of the first quarter of 2019, GCash has had more than 50,000 merchants. Now in 2021, there are definitely more than 100,000 active merchants with them.
And as GCash becomes integrated with payment partners like AUB, we should see a lot of potential for growth in this payments space. To add to this, the pandemic has made cashless payments a necessity as well.
As a merchant, if you need GCash acceptance in your website or with any online presence, you can partner with many Internet Payment Gateways (IPGs) that has GCash acceptance. You can refer to this list of IPGs integrated with GCash.
The main driver of acceptance is that as more and more merchants are integrated to GCash, the more that users will be using this app to pay. It becomes a positive feedback loop. As a business, the lesser friction we have for payments, the better focus we can provide to our products and services.
What are the types of merchants under GCash?
There are 4 types of merchants in GCash as mentioned in the site:
- Online Seller
- Storefront Seller
- Online and Storefront Seller
Informal sellers have little to no requirements. Any GCash user can also be an informal seller. There is no need to register or anything, as the user/seller can already get a personal QR code using Send via QR. People won’t need to send money by manually inputting the contact number and/or amount when they need to pay for products or services anymore.
Online sellers as mentioned, only sell online. GCash has a partnership with Paynamics to enable payment links called Getpaid Payment Portal. This allows sellers to accept payments via sending links to buyers. This is similar to Paymongo or to Bux.ph, but in this case, GCash would be the only payment method available. Here is a comparison of the different payment link services accepting GCash.
As for storefront merchants, they can have their own QR codes generated, including a separate transaction wallet that is tied to their business itself. This allows them ease of use as any transaction using the codes will be settled to their bank account at the start of the next day.
Enterprises can also more use different modes of payment other than static QR as they have their own POS (point-of-sale) systems. If they have an online presence, they can also utilize GetPaid, or their own implementation of online payments.
What are the list of requirements for each type?
There are no requirements for informal sellers as the Send via QR function is free in the GCash app itself.
For online sellers, you would need to register in the GetPaid portal and onboard with Paynamics as their sub-merchant. This involves documents that need to be submitted while within the portal, depending on the type of merchant you are (sole proprietor, partnership, or corporation).
If you want your own QR codes as a storefront seller, you would need to apply as a merchant with GCash itself. They’ve streamlined the process as you can onboard yourself in their merchant portal. Once you’ve registered, you can submit documents and enroll your representatives and branches where the QR kits will be delivered.
What’s the difference between an enterprise wallet and a user wallet?
A user wallet is the one used in the GCash app. You can do normal GCash things with a user wallet like Send Money, Cash-in, Bank Transfer, Bills Payment, and others.
An enterprise wallet is used for those onboarded as a storefront merchant. This wallet acts as a wallet for all of the customer transaction amounts that happen in a day. Once settlement occurs the next business day, this wallet gets “swept” and automatically gets settled into the nominated bank account of the seller.
GCash Scan-to-Pay Merchants / Storefront Sellers
Typically, small and medium merchants go for using Scan-to-Pay or QR Payments because this is the simplest way to get GCash acceptance.
What do I get when I onboard with GCash as a Storefront Seller?
If you are an individual/professional merchant, you will get a kit that contains the GCash promotional materials as well as the QR code for display.
If you are onboarding as an enterprise merchant, aside from the kit, you will also be given feature phones for each branch you’ve onboarded. These phones will be able to receive SMS notifications when a GCash sale takes place.
Additionally, you can request access to the merchant online payment portal (this is different from the merchant onboarding portal), where you will be able to see transactions in real-time. You will also get a transaction report every day, training on how to use your GCash account, and a separate merchant support hotline for issue escalations.
How does Scan-to-pay payment work?
During payment, the GCash user scans your QR Code, and he also inputs the amount to pay. Once he confirms payment, both of you should be receiving an SMS notification.
For enterprise partners, there are also other modes of payment aside from the typical scan-to-pay but they would need system integration. I’ve also described these in detail in another post.
How does GCash settle to my account?
If you are a storefront merchant, the cash you receive goes to your GCash account directly. Keep in mind that this is subject to the monthly limits a verified account has (Php 100k for cash coming in and out). You can increase this limit to Php 500,000 if you link a bank cash-in into your account.
If you are a business entity, GCash will require you to nominate a bank account for settling all of the transactions that occurred. They will be “sweeping” your wallet, and then depositing this amount to your bank account. A usage report and a settlement report will be generated and that will be also be sent to your nominated official email address.
Are GCash transactions considered cash transactions?
Yes, they are considered as cash transactions (even if they are by definition “cashless”) and are exempt from withholding tax, unlike credit card payments.
If you paid via GCash Mastercard, it will also be considered as cash, as it is a debit card.
Does G-XChange / Mynt get a portion of every transaction?
G-XChange is the official operator of GCash. And as to gain revenue, they get a cut out of every purchase through any GCash payment channel. They call it the Merchant Discount Rate (MDR) and they get 2% of the transaction amount. This applies to both online and storefront sellers.
However, if you are an informal seller, there is no MDR for each transaction. You will be getting the whole amount as it is technically using Send Money.
Some enterprises negotiate a better rate with other conditions (like GCash only promotions, partner-related vouchers, etc).
Do I need to be online when accepting Scan-to-Pay payments?
No, however, you need to be under good network coverage to be able to receive SMS notifications.
What if I don’t like to use Scan-to-Pay? Are there other GCash payment alternatives?
Scan-to-pay is the simplest way to provide a GCash payment option to a merchant since you only need a QR code to be able to transact.
However, as enterprises grow, they will eventually attain the capacity to implement or acquire their own POS solution. A partnership with GCash is possible if they are willing to do some integrations (e.g., Generate QR needs each POS to have a scanner) or they can also opt to go through a GCash integrated third party.
As for online payments/e-commerce, merchants can also opt for integrating with payment gateways. Here is a list of companies with GCash payment integrations.
Can I integrate with a payment provider that is partnered with GCash?
Yes. GCash is partnered with different payment providers and banks (like AUB, BDO, and GHL). They each can provide different ways of payments like credit cards or other digital wallets like GrabPay or Coins.ph.
What if I don’t receive any SMS notification for a GCash Scan-to-Pay transaction?
There is a way to check the transaction via SMS. You just need to send an SMS with this format to 2261 using the feature phone from GCash:
GCASHCHECK <GCASH REF NO> <GCASH DISPLAY NAME>
The GCash Reference Number is the transaction ID the GCash user received as proof of payment. The display name is the name displayed above the QR Code in the standee.
So, in this case the message should be:
GCASHCHECK 007288693 MDC Robinsons Place Pioneer Mand D
Once you send it via the feature phone to 2261, you should receive the transaction status for that transaction.
You can also get a summary of GCash transactions so far in the day via SMS to 2261.
GCASHSUMMARY MDC Robinsons Place Pioneer Mand D
Is there an official GCash merchant list?
Yes, there is one in the GCash app itself. You need to open your sidebar, and the merchant list is just below the Voucher Pocket.
After clicking it you can see different categories (Pharmacies, Supermarket, Food, Retail, Convenience Stores, Transportation, Entertainment, Lifestyle, Services).
When you click any of these, you will see the full list for that specific category.
GCash Online Payments for Merchants / Online Sellers
I have an online business. Can I use GCash for online payments instead of using Scan-to-Pay?
Yes, you either use the GetPaid portal to accept payments or you can leverage GCash online payments with the other payment gateways/providers online. Here is a shortlist of payment providers that provide online payment functionality:
- Asia United Bank
- Fucent Gateway
- IPay MyEG
- Pilipinas Teleserv
What if I want to pay my employees via GCash?
There is also a disbursement solution for GCash. You can provide salaries and compensations using this option.
Do you have a copy of the Frontliner Guide for Merchants?
Yes. I was able to take a picture of this from a JRS Express branch as they support GCash Scan-to-Pay payments.
GLife is a feature in GCash that allows you to have a mini-app from within the GCash app. This makes it easier for a seller to gain visibility and ease of payment as they are inside the GCash ecosystem already.
To be able to get into this, you can reach out to official GCash/GLife partners like:
I explained what GCash is from the point of view of the merchant. I discussed how to avail of it, and what distinguishes GCash payments from others. I also answered some frequently asked questions regarding setting up GCash as a merchant.
For posts or pages related to merchants, you can also check out:
- How to Setup your Personal QR Code
- Paymongo and GCash
- Bux.ph and GCash
- Comparison of Payment Links Services
I have a new e-commerce site where you can buy some e-books here: GCR Prime
After reading about what GCash is, here are the main GCash features: