PayKey in talks with PHL banks to introduce ‘earned wage access’ app in 2022

PayKey, a Tel Aviv-based financial technology startup, is considering introducing its “earned wage access" (EWA) app in the Philippines next year.

In a statement on Thursday, PayKey said it is in advanced talks with some leading banks in the country, which it did not identify, regarding its plan to introduce the first EWA app in the local market in early 2022.

The company said the EWA solution gives workers access to their accrued salaries on any given day of the month so they can use it to pay any immediate expense.

“People get paid once of 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 It’s a very outdated way of looking at how salaries are paid,” said Roy Gabriel, chief innovation officer and general manager of PayKey.

“If they need money to pay bills and other unanticipated expenses, especially amid the new normal, they need to find another solution. They would ask for an advance, or what Filipinos call ‘bale,’ from their employers or even borrow from their family or friends, or take a loan from external lenders, which, sometimes can get stressful,” Gabriel said.

PayKey said that if an employer offers EWA to his/her workers, the employees can simply go into the app to see how much money they earned to date and then request an advance salary via the app which allows transfer of funds to a worker’s linked bank account.

“In the Philippines, the generation is getting younger. With the coming of age of digital native generations, such as millennials and GenZs, employees now expect everything to happen fast and with just a few clicks. Integrating EWA is one great way for banks to ensure that they thrive now and in the future,” Gabriel said. — VBL, GMA News