The Paywatch team
Paywatch, an earned wage access (EWA) service provider operating in South Korea and Malaysia, announced a US$9 million pre-Series A financing.
Returning investor Third Prime led the round, joined by Hana Ventures (the venture arm of Hana Financial Group in Korea), Parkwood Corp., and the endowments of Vanderbilt University and the University of Illinois Foundation.
Paywatch will utilise the money to grow its product offerings, strengthen its presence in existing markets, and accelerate expansion into new markets, including the Philippines and Hong Kong, where it expects to launch in 2023.
Paywatch was founded in 2020 by Korean brothers Alex Kim and Richard Kim, the former Country Manager of MasterCard Prepaid and former Sr. VP of HSBC in South Korea.
Also Read: Why earned wage access is the future of pay
The startup works with employers and banks to provide instant workers access to their earned wages before payday. This helps workers avoid high-interest payday lending practices to cope with unexpected financial strain.
In addition, Paywatch also serves as a bridge that provides its underbanked users with direct financial access to banks.
The firm claims its solution has reached a 50 per cent engagement rate among its Malaysian users this year. It has over 100 corporate clients, including Lotus’s, KFC, Pizza Hut, Wilmar International, TGI Fridays, Outback Steakhouse, and Metrojaya Department Stores.
“Though macroeconomic conditions are catching up to everyone globally, many low-income workers were already experiencing financial burdens. During our year in Malaysia, we have seen first-hand how much of a difference our service makes to employees’ state of mind. For companies, we have proven to increase recruitment and retention,” said CEO Richard Kim.
In January this year, Paywatch raised US$5.25 in a seed funding round led by Third Prime and unnamed family offices in Singapore and Hong Kong. SparkLabs, Won & Partners, and CTK Investments also participated.
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