Earned Wage Access (EWA) service provider Paywatch has reportedly secured $9 million via a pre-Series A funding round that was led by existing investor Third Prime.
The investment round also included contributions from Hana Ventures which is the venture division of Hana Financial Group in Korea. Parkwood Corp. and the endowments of Vanderbilt University and University of Illinois Foundation also took part in the raise.
The firm intends to use the capital injection to further expand its product offerings and solidify its presence in existing markets such as Malaysia and South Korea.
Paywatch is also focused on accelerating its ongoing expansion plans into various new markets such as the Philippines and Hong Kong where it aims to launch operations next year.
Established in 2020, Paywatch reportedly has more than 100 corporate customers and claims that its earned wage solution has reached a 50% engagement rate among its Malaysian clients in 2022.
Recently, Paywatch was also able to acquire $5.25 million through a seed funding round.
Richard Kim, Founder and CEO at Paywatch, stated:
“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.”
As noted by its management, Paywatch claims it is “the only earned wage access service provider backed by major banks and recognized by the United Nations, Central Banks and regulators for its commitment to financial access and ESG.”
Working with “top” banks and employers in each of its markets, Paywatch explains that it serves as “a bridge to help employees get banked, start getting credit the right way and find financial security.”
Paywatch maintains business operations in South Korea, Malaysia and Hong Kong.
Paywatch partners with employers and banks “to provide workers with instant access to their earnings before payday.”