Taguig city: An official from a fintech company that offers early wage access to employees has expressed confidence in their operations within the Philippines, emphasizing the advantages their services offer to workers in need of financial support.

According to Philippines News Agency, a service known as earned wage access (EWA), which is gaining traction globally as a vital financial management tool, enables eligible employees to withdraw a portion of their salaries before the official pay date, thus addressing immediate financial needs. This model, akin to a cash advance, is facilitated through Paywatch Philippines, where employees can access their wages via a mobile application, reducing the necessity for loans to bridge financial gaps.

Rowell del Fierro, Country Manager of Paywatch Philippines, highlighted during a briefing in Taguig City that they currently partner with around 70 major companies, providing benefits to approximately 100,000 employees. These companies, predominantly in sectors such as business process outsourcing (BPO), manufacturing, food and beverages (F and B), and retail, allow their employees to access up to 30 percent of their earned wages ahead of the scheduled pay period. This system ensures that employees still receive a significant portion of their salary during the regular disbursement.

Contrary to expectations that primarily lower-ranking employees would utilize this service, del Fierro noted that it is not exclusive to them. "It's not just for minimum workers. because when they enroll it across the company, even the managers have access to it. They just have a different use case," he stated.

The fintech company, headquartered in Kuala Lumpur, Malaysia, is supported by significant financial institutions, including Citi and HSBC, and has amassed approximately USD35 million in equity funding. With this financial backing, Paywatch president and co-founder Alex Kim affirmed during the briefing that the company remains committed to offering services at competitive rates due to their access to cost-effective funding.

Currently serving around 350,000 employees across Malaysia, the Philippines, South Korea, Indonesia, and Hong Kong, the company is optimistic about expanding its reach to nearly a million employees within the next year.