Thursday, February 29, 2024

Israeli tech gives Pinoy workers access to salary before payday

An Israel-based financial technology (fintech) company is planning to bring the concept of earned wage access (EWA) in the Philippines by early 2022 with an end-to-end solution that banks can offer to corporate clients.

PayKey salary

With the program, employees can access their accrued salaries on any given day of the month for any immediate expense. With the main goal of providing this concept as an employee benefit, PayKey plans to also bring this model in a mobile application format.

The EWA concept can be traced back to its roots in the United States, and has already proliferated on a global scale. Since Filipino employees are all too familiar with the period of the month when cash is running low and the scheduled salary is days away, they can now leverage on wage access on-demand.

“People get paid once or twice a month on payday, and it’s been like this for many years. It’s a very outdated way of looking at how salaries are paid. If they need money to pay bills and other unanticipated expenses, especially amid the new normal, they need to find another solution,” said Roy Gabriel, chief innovation officer and general manager of PayKey.

According to Gabriel, Filipino employees traditionally will ask for wage advances from employers or take loans from risky external lenders in taking on emergency spending. With a few taps on an EWA app, employees will be able to check and withdraw the amount of money they earned to date and transfer to a linked bank account instantaneously.

“Employees have this money but cannot access it even when they need it. It’s a very archaic way of looking at employees and salaries and, we want to change that by empowering them through EWA,” he added.

Incorporating the EWA trend can add to a company’s reputation of showing dedication to supporting the financial wellbeing of their employees, offered as part of a workplace benefits package.

PayKey also sees EWA as an attractive advanatage that contributes to easier recruitment, and is currently in advance talks with some leading banks in the Philippines for the launch of the first local EWA app with a target timeline of early 2022.


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