How S’pore fintech company allows employees to “GetPaid” before payday – Wired PR Lifestyle Story

The idea of ​​our salary is simple: you receive a certain amount of money at the end of the month for the amount of work you do. It’s a framework that has worked well for everyone in the long run, but this model isn’t as flawless as it seems.

In an attempt to change the way he paid, he created an app called Mitchell Goh Pay Introducing the idea of ​​paid access in Singapore.

It basically allows employees to access it before payday, if necessary.

Although this scheme is still new in Singapore, the concept of access to paid earnings is constantly growing in Southeast Asia (SEA), and is already quite prevalent in the United States (USA) and the United Kingdom (UK).

From social worker to financial startup founder

The impetus for the creation of GetPaid stemmed from Mitchell’s decades of experience as a social worker and the gaps in the payroll model.

[In] At the end of 2020, I came across an article about paid earnings access (EWA). By this time, EWA was already gaining popularity in the US and the UK.

However, very few people started EWA in Singapore and SEA. Given my experience in social work and finance, I saw the EWA model as a much-needed financial solution, and it could have been a great help in reducing the average income.

– Mitchell Goh, Founder and CEO of GetPaid

While most of us are fine with charging at the end of the month, this is not always the case for some people.

When these people urgently need money for a month, they usually turn to their relatives and friends for help. There are also those who would ask for the services of a lender, or get an advance from the employer.

“Everything [these] they are very dangerous or not always available, “Mitchell said.

GetPaid fills that gap by allowing employees to access salaries that have already been earned but not yet received. The catch is that they will charge a temporary transaction fee.

“Since it’s not flexible, there are no late fees or surcharges. [This gives] employees have a great solution if they only need micro-amounts to pay until the next payday, ”Mitchell explained.

Earned salary access as the future of salary

Earned salary access has obvious benefits, so you can pay for one right away.

Traditionally, monthly and two-week pay cycles are common, as there is a cost associated with paying salaries, such as a check or GIRO transaction. Needless to say, fixed pay dates make it easier for companies to manage their cash flow.

However, when the flexibility of payments, banking, and shopping is becoming commonplace, why should it be different to pay a salary?

– Mitchell Goh, Founder and CEO of GetPaid

He went on to cite a written paper Ernst & Young 2020, which indicates that at one time, approximately $ 1 trillion was accumulated in salaries in the treasury of employers in OECD countries before being paid to employees.

This liquidity could be better used to allow employees to control their finances and improve their financial well-being in line with their income and expenses.

With the advancement of technology and the rise of cheaper payment methods, Mitchell believes that they are equipped to provide employees with greater salary flexibility while maintaining the needs of the company’s cash flow.

He also wants to dismiss the misconception that Singapore is a very rich country and may not need services like the EWA.

According to OCBCs the welfare index, 62 per cent of those surveyed in Singapore said they would not be able to afford a one-off expense; 7% said they borrowed money from family or friends, and 27% agreed to pay only the minimum amount on credit cards.

In addition, a Financial Welfare Index conducted by DBS in 2020 revealed that Singaporeans scored only 46 out of 100 points, compared to the regional average of 56 points.

study called “What People Need in Singapore: A Home Budget Review” A family of four in Singapore needs $ 6,426 a month to earn a basic living. Assuming that both parents work, this is an average of S $ 3,213 to meet the basic standard of living that each parent must earn.

However, approximately 28 percent of our total workforce earns less than that amount, including Work Permit and S-Pass holders.

Therefore, in the case of low- and middle-income earners, this immediate access to cash leads to greater financial flexibility, especially in emerging situations, better financial well-being, and less confidence in borrowing money.

It’s also a victory for employers

With this EWA model, of course, there will be many questions and concerns from employers to implement this system.

The great thing about GetPaid is that it comes at no cost to the employer. In addition, data from GetPaid have shown that the EWA model contributes to the retention rate and is a good tool for attracting new talent.

Of course, another major concern for employers is their overconfidence in EWA services, which exacerbates the financial situation of employees.

“This objection also informs us that there is a need for employers to agree (for this EWA). However, we understand that there will be a subset of employees in this category,” Mitchell acknowledged.

Thus, GetPaid has created its own application to protect against this situation. GetPaid gives employers the flexibility to customize and limit the amount of their pay. In this way, “workers will still be overpaid at the end of this pay cycle.”

GetPaid has just completed its first user survey, and the results are encouraging. 66 percent found that GetPaid’s system provided additional peace of mind, while 61% of users found that Get Paid helped them with their financial needs.

At the same time, 72 percent of users also feel more loyal to their employer after introducing GetPaid.

How does it work?

GetPaid has a simple process for internalizing employers. First, employers need to register with GetPaid, and employees need to register via email. They can log in to their account to view the available funds and remove them if necessary.

There will be a fixed fee of three per cent for each transaction, regardless of income and amount deducted. The money will take one business day to be credited to the employee’s registered bank account.

There is no registration or membership fee for GetPaid, which makes it a sustainable method for employees and employers alike.

Today, GetPaid has already accumulated more than 20 customers in six months and is growing rapidly.

Although GetPaid is open to all industries, the majority of GetPaid’s customers to date come from the F&B, retail, manufacturing and logistics industries.

“We enjoy the day that GetPaid can impact other industries such as construction, shipping, hospitality and healthcare,” Mitchell said.

He is confident that the EWA is the future of the payroll and that GetPaid “expects to be able to carry the burden of financial well-being in the workplace, not just for Singapore but across Asia.”

Money has always been a difficult topic to discuss in Singapore. Although much of the country is wealthy, many still live on a paycheck. GetPaid is a way to level the playing field and ensure the financial well-being of all.

Featured Image Credit: GetPaid