Startup Spotlight — Paywatch
In this edition of “Startup Spotlight,” we showcase Paywatch, an innovative, dynamic player in the FinTech sector dedicated to reshaping financial access and well-being for employed individuals. As the world deals with the ever-evolving landscape of financial services, Paywatch stands out with its innovative Earned Wage Access (EWA) solutions. Join us as we deep dive into a conversation with Kenneth Chow, shedding light on Paywatch’s core mission, the challenges they tackle, and their ambitious goals for the future.
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Could you briefly introduce Paywatch?
Kenneth: Paywatch is the only Earned Wage Access (EWA) solution provider backed by major banks and recognized for its commitment to financial access and ESG (Environmental, Social, and Governance). Working with top banks and employers in each of its markets, Paywatch serves as a bridge, empowering employees to access banking services, initiate responsible credit-building practices, and achieve financial stability. Presently, Paywatch operates in Malaysia, South Korea, the Philippines, and Indonesia, spearheading our mission to promote financial inclusion and security in these regions.
What is Earned Wage Access?
Kenneth: Earned Wage Access, or EWA, is a financial service that allows employees to access a portion of their earned but unpaid wages before the scheduled payday. It provides flexibility in managing finances and addressing immediate financial needs.
What is the core problem Paywatch is addressing?
Kenneth: In the markets where we operate, a significant barrier exists in the form of limited financial inclusion. This encompasses the accessibility and use of financial services, particularly among individuals and businesses who are underserved or excluded from mainstream banking services.
What motivated the establishment of Paywatch?
Kenneth: Paywatch was founded by Richard Kim, a former owner of a bar and restaurant in South Korea. Frequently, his employees would request salary advances for the work they had completed, always within the amount they had earned already during that month. This marked the beginning of Paywatch.
In a concise sentence, what is Paywatch’s primary mission?
Kenneth: Paywatch’s primary mission is to ensure equitable financial access for all employed individuals.
With the numerous solutions in the FinTech sector, how does Paywatch distinguish itself?
Kenneth: Paywatch distinguishes itself by offering employed individuals a secure and accessible Earned Wage Access (EWA) service, which serves as a safer alternative to predatory lending practices, peer-to-peer lending, payday loans, and traditional credit cards. What sets our solution apart is our remarkably low fee and zero interest rate, ensuring the most competitive pricing in the market. The fee is as low as the charges for ATM withdrawals. Furthermore, we have established partnerships with prominent financial institutions in the region, such as OCBC, UOB, Hong Leong Bank, Hana Bank, and Visa, enabling our users to access a wide array of services through the Paywatch platform.
To date, how many users or clients have benefited from your solution?
Kenneth: Over the past 18 months, we have successfully launched Paywatch in Malaysia, the Philippines, and Korea, experiencing remarkable growth with a 10X increase in the past 12 months. Building on this success, we are expanding our operations to include the Philippines and Indonesia in the second half of 2023. Paywatch is widely recognized as the premier enterprise-focused flexible pay solution, serving multinational and local conglomerates across multiple countries. Our esteemed clientele includes notable organizations such as Shangri-Li Hotel and Properties, Lotus (formerly Tesco), Wilmar, CP Group, KFC, Pizza Hut, CJ Group in Korea, CU, and Outback Steakhouse. These partnerships highlight our ability to serve diverse industries and establish ourselves as a trusted provider of flexible pay solutions for enterprises.
What are the primary projects or initiatives that your team is currently focused on?
Kenneth: Our team is currently primarily focused on two key initiatives:
1. Financial Education: We have partnered with VISA Practical Money Skills to deliver financial literacy content to our users through our app. This initiative aims to empower individuals to make wiser financial decisions, covering topics from budgeting to safeguarding against identity theft.
2. Regional Expansion: We are actively working on expanding our presence to the Philippines and Indonesia, as part of our strategic growth plan.
As 2023 draws to a close, what trends or challenges stand out in your industry?
Kenneth: Two prominent trends and challenges in our industry are evident:
1. Lack of Access to Comprehensive Financial Services: While we have successfully provided timely financial assistance to our users, many of our underbanked users still require more options for making payments or transferring money. There is a pressing need for fast, easy, and cost-effective solutions to address these requirements.
2. Limited Financial Literacy: Low levels of financial literacy and awareness continue to hinder the full utilization of banking services. Many individuals may be unfamiliar with how banks operate or have misconceptions about the benefits and risks associated with banking. This poses a challenge in promoting broader financial inclusion.
Do you have specific industries or groups in mind for collaboration?
Kenneth: In terms of collaboration, we have the following industries and groups in mind:
1. Banks and Financial Institutions: We are currently working with top banks in the Asia region and are actively expanding our partnership network to further accelerate our growth and reach.
2. Blue Chip Clients and Brands: While we already have a portfolio of blue-chip brands that we have successfully served, we are continuously exploring opportunities to expand our offerings to more clients. This enables us to serve a broader user base in need of our product.
How can partnerships amplify Paywatch’s growth and capabilities?
Kenneth: By aligning with key stakeholders such as financial institutions and technology providers, we can leverage their expertise and networks to accelerate our progress. These partnerships enable us to access broader customer bases, extending our market reach and increasing our brand visibility. Furthermore, collaborations foster innovation by bringing together diverse perspectives and skill sets, empowering us to deliver cutting-edge solutions. Through the pooling of resources and knowledge, we can develop new features, enhance the user experience, and drive product development. In short, partnerships and collaborations are vital for Paywatch’s growth and expanding our offerings.
What are the key objectives and milestones Paywatch is targeting in the upcoming year?
Kenneth: In the upcoming year, our key objectives and milestones include:
1. Further Expansion in Southeast Asia: We aim to extend our services in the region, a crucial step in our journey to become the leading flexible payment services provider in Asia.
2. Diversifying Product Offerings: We are exploring the development of additional products tailored to improving financial well-being, such as insurance options.
3. Promoting Financial Literacy: Our mission includes further efforts to enhance financial literacy, helping individuals break free from the cycle of debt caused by predatory lending practices.
For readers keen on learning more or discussing partnerships, how can they contact you?
Kenneth: For those interested in learning more or discussing potential partnerships, please visit our website at www.paywatchglobal.com or reach out to us via email at bizsupport@paywatchglobal.com.
QIDS Venture Partners is dedicated to supporting and catalysing the developments in FinTech by sharing with our audience FinTech trends and interesting FinTech business ideas. You may forward this article to other investors who are interested in FinTech as well. If you need more information or would like to arrange a meeting with us, please feel free to contact our Managing Partner Edward Shen via LinkedIn or email.
