Paywatch, a Malaysia-based provider of earlier access to salaries in East and Southeast Asia, recently entered an agreement with US-based financial technology firm Visa to expand its geographic range as well as the range of payment services it provides to people in Asia – particularly Southeast Asia – who otherwise lack access to financial services. Paywatch contracts with employers and banks to offer “earned wage access” for employees, giving them access to their accrued wages before the end of the payroll cycle. Paywatch customers can access their funds via automated teller machines (ATMs) for USD 0.21 per transaction.
Going forward, Paywatch plans to give its customers access to Visa’s financial literacy resources – with a focus on how to reduce personal debt – and it seeks to leverage Visa’s network to promote its international expansion. Paywatch operates in Malaysia, Hong Kong and South Korea and is in the process of opening for business in Indonesia and the Philippines.
Paywatch co-founder Alex Kim said, “We recognize the importance of cross-border capabilities and networks, and we are collaborating with Visa to develop additional payment solutions that will provide our users with more financial access and convenience beyond our Earned Wage Access solution.”
Paywatch was founded in South Korea in 2022, but has since relocated its headquarters to Malaysia. The firm has raised a total of USD 14 million as of 2023, largely from US-based venture capital firm Third Prime.
Visa partners with financial institutions to provide consumers with credit, debit and prepaid cards that can be used at merchants in 200 countries. The firm also offers payment and consulting services for commercial clients. As of September 2022, Visa reported 12-month net revenue of USD 29 billion on total assets of USD 85 billion.
By Anaya Jhaveri, Research Associate
Sources and Additional Resources
Digital News Asia press release
https://www.digitalnewsasia.com/startups/paywatch-visa-sign-mou-promote-financial-inclusion-among-asias-workforce
Paywatch homepage
https://www.paywatchglobal.com/
Visa homepage
https://visa.com
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