Enabling Regional Expansion with Citi

Paywatch, a financial technology (fintech) start-up known for its earned wage access (EWA) solution, has been working closely with Citi to expand its business across Asia.

"Citi has played a pivotal role in our growth journey. Our facility from Citi is powering our EWA disbursements across all of our markets," says its co-founder and president, Alex Kim.

EWA is a solution that enables companies to let their employees access a portion of their earned salary in real time, rather than receiving it at the end of the month. It improves the cash flow of the man in the street and enables him to avoid taking on additional debt.

Founded by Alex and his brother, Richard Kim, Paywatch is headquartered in Kuala Lumpur and operates in Indonesia, the Philippines, Hong Kong and South Korea. The company, which is on the Forbes Asia 100 to Watch list, is serving notable clients locally, including Jaya Grocer, Guardian, PayNet and Media Prima.

How does Paywatch benefit from its partnership with Citi? Alex says Citi provides the start-up with funding. So, when an employee of a company wants to access a part of his salary in real time by making an EWA withdrawal, Citi would provide the employee with the money. What's truly impressive about Citi, however, is its team that works well with Paywatch to provide the start-up with specific products to solve its problems. "The Citi Malaysia Digital Technology and Communication team has helped us arrange this complex facility for all of our operating markets, including South Korea, Indonesia and the Philippines.

"Such a regional arrangement is unprecedented in Asia for a new, unique product like ours. Citi has thus allowed us to accelerate our expansion at record speed," says Alex.

Beyond financial backing, Citi has been an invaluable partner in fostering innovation within the Paywatch team. "Citi's insights have inspired us to explore new business opportunities. And its extensive network has connected us with key players i n the fintech space, including other industry peers and venture capital firms," he adds.

Alex especially appreciates the fact that Paywatch has a single point of contact with Citi through the Citi Malaysia Digital Technology and Communication team. This ensures seamless execution for its global facility and helps the firm enhance its products efficiently.

With such a dedicated team, Citi is clearly committed to supporting fintech innovation. The global bank has also been actively investing in promising start-ups to fuel their growth, says Alex.

"Citi hosts exceptional events, such as the Citi Leader­ ship Summit that Richard and I attended. These events, organised for its partners, bring together leaders in the digital technology and facilitate collaboration.

"Additionally, through our partnership with Citi, we have gained access to money market services, which have been instrumental in optimising our financial strategies," says Alex. Paywatch announced on its official website it has secured US$30 million (RM134 million) in funding, as at June 2024, from a mix of equity and credit facilities. It is the largest fundraising amount for an EWA solution provider in Southeast Asia.

The fintech start-up received more than US$14 million in its Series A equity investment, led by Third Prime, a New York-based early stage venture capital firm and a consortium of US investors, including Vanderbilt University and University of Illinois Foundation. The firm then raised another US$16 million in credit facilities from global banks, including Citi.

Alex says Citi is a vital partner for Paywatch as it continues to expand its business and market share. Beyond the traditional borrowing and lending relationship, we plan to collaborate closely with Citi on payment solutions, which will enable us to offer a broader range of products t o our users and facilitate our entry into new markets across Asia,". As the firm plans to grow quickly and aggresively, Alex envisions Citi supporting Paywatch along its journey with various corporate treasury needs, including money market services, foreign exchange hedging and investment banking.

"Furthermore, Citi's extensive global network will allow us to identify emerging opportunities and trends, ensuring we remain competitive in the rapidly evolving fintech landscape. Together, we can foster innovation and drive sustainable growth for Paywatch,' says Alex.