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Freeman Cebu Business

Fintech firm enables workers to access salary before payday

Ehda M. Dagooc - The Freeman

CEBU, Philippines —  Israeli fintech company Paykey introduced the Earned Wage Access (EWA) technology in the Philippines this 2022, enabling employees to access their salary before payday and release their already earned paycheck with just a click of a button.

Through EWA, employees can now access their already earned salaries at any time to pay for their current expenses.

As a standalone app offered by PayKey for banks, employees can easily see their earned salaries to date. Then, if they want to have an advance on their wages, they can just request it through EWA. The requested amount will be transferred to the employee’s bank account as soon as it is approved.

 “EWA is not a loan. It has no interest rate because you’re accessing and withdrawing your earned money. With a fixed transaction fee, it will enable employees to easily advance their wages before payday to pay for their immediate expenses. We hope that with our solution, we can help banks and employers reduce employees’ financial stress and improve their well-being, especially at times like this,” said Roy Gabriel, chief innovation officer, and general manager of PayKey.

EWA can be integrated and offered by banks to their corporate accounts so employers can incorporate it as a benefit for their employees.

This year 2022, this white-labeled solution will be available in the Philippines.

As a new type of service for banks, EWA may help encourage unbanked Filipinos to get banked to achieve the Banko Sentral ng Pilipinas’ (BSP) 70 percent goal of Filipinos with bank accounts in 2023.

In a recent report, Visa revealed that 84 percent of 1,000 employees are troubled by their finances while working. This situation affects their health, well-being, and productiveness, as stated by 68 percent of that study’s surveyed individuals.

Another study conducted by Backbase revealed that at least 51 percent of 100 surveyed Filipinos said that they’re currently worried about the state of their finances. It also revealed that the Philippines is the leading country when it comes to financial stress in the Asia-Pacific, indicating that 7 in 10 Filipinos find it challenging to manage their debts.

In most cases, people caught up in these situations resort to borrowing money from their family, friends, or external lenders with interest rates. Another option is to ask for an advance or ‘bale’ from their employers, especially since traditionally, employees receive their salary twice a month on two separate dates. 

EARNED WAGE ACCESS
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