IN today’s fast-paced world, financial flexibility is more critical than ever. Traditional paydays, fixed to bi-weekly or monthly schedules, often fail to meet the dynamic needs of employees. Whether it is an emergency medical bill or an urgent repair expense, there are many valid reasons people today would require immediate financial support before receiving their wages.
But the avenues for seeking financial aid are fairly limited, with the common choices being either personal loans, “buy now, pay later” options or in extreme cases, illegal money lenders. In many cases, these options leave people dealing with unintended consequences, and for those who lack financial awareness, it may worsen their financial situation.
This is what drove me and my brother Richard to build Paywatch, our vision of a bridge between financial institutions and businesses to provide employees with financial flexibility via our Earned Wage Access platform.
From vision to reality: The birth of Paywatch
Our story began not too long ago in 2020, when the world was still grappling with the pandemic. My brother and I set up a business in Seoul, South Korea where we got to know many of our co-workers. We noticed a common pattern among them: Many frequently requested financial support before payday, often asking for early access to their wages.
This got us thinking, there had to be a better way to support them. Listening to our employees, who shared their struggles with managing finances between paychecks, we questioned why those that need liquidity the most didn’t have access to it from major financial institutions on fair terms.
Richard and I have decades of finance experience between us, with Richard holding senior positions at MasterCard (where he was country manager), Citi and HSBC, while I worked as an M&A lawyer and investment manager in private equity. Given our shared backgrounds, we understood the challenges and feasibility for large financial institutions to go about evaluating and serving such a large segment of the population that require such financial support. We were also aware that Earned Wage Access (EWA) was gaining popularity in the West and helped solve liquidity needs but was still not sufficiently addressing the question of fair and true financial access to financial institutions and services.
We saw an opportunity to bring EWA to Asia, but in a differentiated way. Using our institutional experience, we began by approaching and collaborating with banks to structure and create a product together. The outcome of this was a solution that allows employees to access liquidity, through our on-demand salary access service, at the lowest, nominal fees (with additional financial services provided in the platform for free), while having access to more services from major banks. Today, we are proud to work with 11 financial institutions throughout Asia to deliver our solution.
It wasn’t just about giving employees their earned wages ahead of time but going above and beyond delivering tools to educate and support them in their financial management journey, thus helping them make smarter financial decisions. Moreover, the Paywatch platform functions as a bridge that enables our users to deepen their relationship with major financial institutions.
From the very beginning, it was about making a real impact for real hardworking people. Paywatch is more than just a fintech company; it’s a movement towards a more equitable financial ecosystem.
Since then, we’ve established our headquarters right here in Malaysia and currently operate in four markets including South Korea, Indonesia and the Philippines. In Malaysia, we have partnered and collaborated with a few esteemed local brands and institutions, furthering our commitment to the region’s financial well-being and economic growth. Our partnerships with leading companies such as Jaya Grocer, QSR Brands (including KFC and Pizza Hut), PayNet, Guardian (part of DFI Group), Corus Hotel (under MUI Group), Metrojaya, Golden Screen Cinemas, Coway, Media Prima, University of Nottingham Malaysia and Unitar are all testaments to our dedication towards providing a transformative and equitable financial service that caters to the unique needs of the Malaysian workforce.
Smarter money moves: Promoting financial responsibility
The core feature of Paywatch is on-demand pay, which allows employees to access their earned wages instantly. For just RM2 per withdrawal as a transaction fee (the lowest in the market), employees enjoy a debt-free experience without interest rates, repayments, late fees, or hidden charges. We aimed to create a solution that would alleviate financial stress and provide peace of mind.
This was only the start, as we knew there was more that we could do to promote responsible financial habits. We wanted to go beyond just offering immediate financial relief by being a partner that can inculcate a culture of smart financial management.
One of our standout features that we recently added into our system is the Bill Payment service. This feature enables users to pay their bills directly using their accumulated but unpaid salary, ensuring they never miss a payment and helping improve their credit scoring. We’re also working on introducing savings plans and insurance support to provide a more comprehensive financial toolkit for our users.
By constantly empowering employees and keeping them informed and up to date, we hope we can play a part in helping them develop healthy financial habits using practical advice and actionable tips. Topics such as managing debt, understanding credit scores, and creating emergency funds are crucial for maintaining financial health and resilience.
Real stories, real impact: How Paywatch changes lives
The impact of Paywatch on employee well-being and productivity is profound. According to a poll we conducted recently, our users primarily use their Earned Wage Access for unexpected expenses like doctor visits, funerals, and school fees, alongside necessities like utility and grocery bills. Financial stability allows employees to focus on their work, leading to increased productivity and job satisfaction.
Empowering organisations: Customisable solutions for all
I do want to emphasise that Paywatch was not just designed for employees, but also for the organisations that support them. We understand that every company has unique needs, and we’ve tailored our platform to be flexible and customisable with HR personnel and business owners in mind. This allows them to easily tailor EWA to fit their organisation’s processes and structure based on their specific requirements, with support from our team of experts.
One thing we pride ourselves on is our AI-powered employer onboarding journey. We’ve worked hard to make this integration process as smooth as possible with the help of AI, so companies can quickly roll out their EWA offering to their employees. We’ve built all our solutions on a highly scalable and secure platform, whilst simultaneously collaborating with reputable financial institutions to provide our partners and users with peace of mind at every stage of their EWA journey.
Looking ahead: Shaping the future of financial freedom
As we look to the future, Paywatch is setting the stage for a new era in financial management. Imagine a world where financial well-being is accessible to all, where stress over payday is a thing of the past. This is the vision Paywatch Malaysia is bringing to life. With Paywatch, companies are not just redefining payday — they’re embracing the future of financial management and exploring a new realm of employee benefits.
This article is contributed Paywatch president and co-founder Alex Kim.
