MANILA - Grab said it has partnered with SM Investment Corp to rapidly expand its mobile payment arm GrabPay in 2019.

In a statement, Grab said consumers would soon be able to use GrabPay to purchase goods and services, and to load their mobile wallet from SM group's merchants.

The mobile platform said SM's extensive merchant network, which includes over 70 malls, 2,200 stores and 1,200 bank branches, could help expand GrabPay mobile wallet which is currently used for transport and delivery.

“We are confident that by combining the strengths of Grab’s fintech platform with SM’s extensive network of merchant partners and establishments, we can drive financial inclusion for millions of unbanked Filipinos,” said Ooi Huey Tyng, managing director of GrabPay Malaysia, Singapore and the Philippines.

Meanwhile, SM is committed to applying digital innovations in its businesses, SMIC President and CEO Frederic DyBuncio said. SM is also mindful of evolving online-to-offline landscape especially in retail, he added.

Both firms said they support the Bangko Sentral ng Pilipinas' (BSP) push for cashless payments.

BSP Governor Nestor Espenilla earlier said the BSP hoped to bring the volume of digital payments to "more than 20 percent" of the total transactions by 2020 since an efficient retail payment system has the potential to transform the economy.

• Bangko Sentral bats for efficient retail payment systems