PayWatch, an earned-wage access service provider in Asia, has successfully closed its funding round of $30 million to achieve its next expansion phase. The funding combines equity and credit facilities, making PayWatch a dominant contender in the EWA market. Here we are talking about PayWatch Secures US $30 Million Funding From Mix Of Investors.
Series A Equity Investment
PayWatch made more than US$14 million in Series A equity financing. The round was led by Third Prime and a group of American investors including Vanderbilt University and the University of Illinois Foundation. Other new investors were also brought on board, namely Octagon Venture Partners and Wooshin Venture Investment Corp.
PayWatch ensures responsible usage of Earned Wage Access (EWA)
A common feature of PayWatch is that it puts reasonable restrictions on the amount of money employees can withdraw before the payday. This serves to control the level of credit limits and, at the same time, ensure that credit facilities are being properly utilized.
Data also shows that employees have adequate information about EWA. PayWatch takes a moment to familiarize them with financial responsibility, budgeting, and the mission of EWA. All transactions are transparent. They will be able to monitor their usage of EWA and the charges that come with it as well. EWA is not a form of credit; it is a portion of earned wages paid before payroll processing. Employees do not incur or accrue charges or interest.
PayWatch engages with employers to make sure that EWA results correspond to the company’s rules and regulations. EWA features can be adjusted by the employer according to the specifics of the staff employed. Instead of negatively affecting the employees’ well-being, PayWatch educates them on how to use pay-related information responsibly and accountability is ensured at the same time.
Credit Facilities and Debt-Free EWA Solution
Apart from equity funding, PayWatch sourced US$16 million for credit facilities from international banks. Many of the major banks, such as Citi, backed PayWatch’s drive to diversify its product offering. PayWatch has an EWA solution that is completely debt-based to enable employees to access part of their earned wages in real-time. This revolutionary perk eradicates the use of loans and boosts efficiency in managing personal finances.
Strong Partnerships and Growth Model
Some of the brands and institutions that have partnered with PayWatch include some of the prestigious Malaysian brands and institutions. Such affiliations with Lotus, Jaya Grocer, QSR Brands, and PayNet are a testament to their support for the financial stability of Malaysia. This system has been used in processing over US $58 million worth of salaries by PayWatch. Their disbursements stand at around $8 million for a single month and can increase up to 15% every month.
Conclusion
With PayWatch’s fully automated system, it is advantageous to the employees as well as the companies they deal with. They enhance staff satisfaction, job performance, and economic prosperity while decreasing recruiting and training expenses for companies. Investors and enterprises respond positively to PayWatch’s view on establishing a stable and affordable EW service and position it as the catalyst for change in the sphere of financial services.
