KUALA LUMPUR: Syariah-compliant financial solutions group Xanderia Services Sdn Bhd and human resource outsourcing solutions provider CXL Group have partnered to produce Kanz PaydayNow, a financial app that will redefine earned wage access in Malaysia.
The app, a financial empowerment platform, is an innovative and secure solution that empowers employees with early wage access, providing a seamless way for them to access their wages before payday. It is designed to alleviate financial stress and enhance employee productivity.
The initiative aims to enhance workplace financial well-being while fostering responsible financial practices.
When asked about the motive of this app in helping employees with their wages, CXL Group CEO Fariz Abdullah said they are targeting low- to medium-wage earners who require financial assistance with their day-to-day lives.
“Without our salary advancement feature, many of them would either use their credit card to pay for their daily necessities, which would increase their debt over time, and some would even resort to obtaining loans from unlicensed lenders, which traps them into a vicious cycle of repaying their debt.
“Our motive is to help this group of people and help them with their financing as well as increase financial literacy via the app so they can learn how to borrow money, calculate interest, and many more,“ he said after the official signing ceremony to commemorate the launch of the app.
Fariz said the onboarding process for the app is easy, and many employers are interested in trying the app out.
“Assuming an employee earns RM3,000 a month, and RM100 a day, the norm is that they get their salary at the end of the month. Assuming they would have earned RM1,500 by the middle of the month, the employee can request a 50% salary advancement and receive RM750 the very next day.
“We receive an income from a small transaction fee that will cover our revenue and cost of technology each time they take out the money,“ he said.
When asked what separates Kanz PaydayNow app from other fintech in the market, Fariz said this app collaborates Xanderia and CXL technology together to form an integrated system that outmatches competitors in the market.
“Most players in the market use a standalone payroll application, which is not connected to any human resource system. For us, we are partnering both Xanderia and CXL tech together to make it into one integrated system, so any organisation who are already our customer will have to switch on the feature and it will work,“ he said.
“That is the larger picture of our partnership; we are doing system-level integration,“ he added.
Fariz said his company has already run through a survey with employers who expressed interest in the app.
“We already have a large pool of employees – 1,000 to 1,500 – who are willing to try the new app. They are the ones who will get the feature first,“ he said.
Xanderia chairman and CEO Razi Pahlavi expressed confidence that the app will be well received by employers as they have already done a proof of concept with other smaller companies.
“Every month, there is always a salary advancement transaction of three to five. Although it is a small number, the problem is evident that employees are demanding wages earlier.
“If we can come in and solve the problem for them, it’ll be very much welcomed by many parties,“ he said.
