How this S’pore fintech firm lets employees ‘GetPaid’ early before pay day

The idea of ​​our salary is simple: you receive a sum of money at the end of the month commensurate with the work you have done. It’s a framework that has worked well for everyone for a very long time, but this model isn’t as perfect as it looks.

In an effort to change the way we get paid, Mitchell Goh created an app called GetPaid to introduce the idea of ​​access to earned wages in Singapore.

Essentially, it allows employees to access their payroll before payday if they need it.

Although this scheme is still new in Singapore, the concept of access to earned wages is steadily gaining ground in South East Asia (SEA) and is already quite widespread in the United States (United States) and the United Kingdom. (UK).

From social worker to founder of financial startup

mitchell goh, founder of getpaid
Image Credit: Mitchell Goh

The impetus to create GetPaid came from Mitchell’s past experience as a social worker for a decade and existing gaps in the salary model.

[In] At the end of 2020, I came across an article written on Access to Earned Wage (EWA). By this point, EWA was already gaining popularity in the US and UK.

However, very few people have started EWA in Singapore and SEA. Given my background in both social work and finance, I saw the EWA model as a much needed financial solution that could be of great help to low to middle income people.

– Mitchell Goh, Founder and CEO of GetPaid

While most of us are okay with getting paid at the end of the month, some people don’t always.

When these people are in dire need of money for the month, they usually turn to family and friends for help. There are also those who would use the services of a money lender or obtain an advance from their employer.

“All [these] are either very risky or not always available, ”Mitchell said. “There are few or no solutions on the market that address the workplace financial well-being of low to middle income earners. “

GetPaid fills this gap by allowing employees to access wages already earned, but not yet received. The catch is, they’ll have to pay a one-time transaction fee.

“Since this is not a loan, there are no late fees or additional charges. [This gives] employees are a great solution if they just need micro amounts to get them through to the next payday, ”said Mitchell.

Access to earned wages as the future of remuneration

There are obvious advantages to having access to an earned salary, one being that you can get paid instantly.

Traditionally, monthly and bi-monthly pay cycles have been the norm as there is a cost associated with paying wages, whether in the form of checks or GIRO transactions. Not to mention that fixed salary dates make it easier for companies to manage their cash flow.

However, as flexibilities for payments, banking, and purchasing are quickly becoming the norm, why should payroll payments be any different?

– Mitchell Goh, Founder and CEO of GetPaid

He went on to quote an article written by Ernst & Young in 2020, which indicates that at any given moment, there is an estimated $ 1 trillion in payrolls accumulated in employer coffers in OECD countries before they quit. ‘it is not paid to the employees.

This liquidity could be better used to allow employees to take control of their finances and improve their financial well-being by aligning more closely with their income and expenses.

With advancements in technology and the increase in cheaper payment methods, Mitchell believes they are better equipped to provide employees with increased salary flexibility, while maintaining the company’s cash flow needs.

Also, he wants to debunk the misconception that Singaporeans are a very wealthy country and maybe don’t need a service like EWA.

OCBC Financial Well-Being Report 2021 for GetPaid
Image Credit: OCBC Financial Wellness Report 2021

According to the OCBC Wellbeing Index, it showed that 62 percent of Singaporeans polled said they would be unable to cover a sudden expense; seven percent said they borrowed money from family or friends, and 27 percent said they only paid the minimum amount on their credit cards.

In addition, a separate financial well-being index from DBS in 2020 found that Singaporeans scored just 46 out of 100 points compared to the regional average of 56 points.

A study titled “What People Need in Singapore: A Household Budget Study” assumes that a family of four in Singapore needs S $ 6,426 per month for a basic standard of living. Assuming both parents are working, this amounts to an average of S $ 3,213 each parent must earn to achieve a basic standard of living.

However, around 28% of our overall workforce earn less than this amount, including work permit and S-Pass holders.

As such, for low- to middle-income people, this immediate access to cash means more financial flexibility, especially in emergencies, better financial well-being, and less reliance on debt. ‘money.

It is also a victory for employers

Get paid
Image Credit: GetPaid

With this EWA model, of course, there will be a lot of questions and hesitation on the part of employers to implement this system.

The advantage of GetPaid is that it does not cost the employer anything. In addition, data from GetPaid has shown that the EWA model contributes to the retention rate and is a good tool for attracting new talent.

Of course, one of the other main concerns of employers is the over-reliance on EWA services, which further worsens the financial situation of employees.

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

As such, GetPaid has built its application to guard against this situation. GetPaid gives employers the ability to customize and limit the amount of their compensation that their employees can access. That way, “employees will still have a payroll balance at the end of this payroll cycle.”

GetPaid has just completed its first user survey, and the results are encouraging. 66% found the GetPaid system to give them extra peace of mind, while 61% of users said Get Paid helped them with financial need.

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

How it works?

Get paid in 24 hours
Image Credit: GetPaid

GetPaid has a simple process for on-boarding employers. Employers must first register with GetPaid, and employees must first register by email. They can log into their account to see their available funds, and withdraw if necessary.

There will be a flat three percent fee for each transaction, regardless of income and amount withdrawn. 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, making it a sustainable method for employees and employers.

Currently, GetPaid has already amassed over 20 corporate clients in six months and is growing rapidly.

Although GetPaid is open to all industries, most of GetPaid’s customers so far have primarily come from the food service, retail, manufacturing and logistics industries.

“We are savoring the day when GetPaid could impact other industries such as construction, marine, hospitality and healthcare,” Mitchell said.

He believes EWA is the future of compensation and hopes GetPaid can “lead the burden of financial well-being in the workplace – not just for Singapore, but for Asia as a whole.”

Money has always been a risky topic to discuss in Singapore. While much of the country is wealthy, many still live paycheck for paycheck. GetPaid is a way to level the playing field and ensure everyone’s financial well-being.

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Featured Image Credit: GetPaid

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