MANILA - Philippine fintech startup NextPay said it aims to grow its transaction volume to over P1 billion annually over the next 2 years as more freelancers and small businesses take advantage of the platform.
NextPay announced last month that it has $1.6 million or over P80 million in seed funding from international and local investors, including a private investment fund of the Sy family. It has said the funds will be used to expand its suite of services, its customer base, and introduce new digital banking solutions to micro, small, and medium enterprises (MSMEs).
Don Pansacola, CEO of NextPay, told ANC that freelancers like its digital invoicing solutions which lets them track which customers have made payments. Small businesses meanwhile like NextPay’s payroll solutions which lets companies pay employees through the bank or e-wallet chosen by the employee.
The company said their payroll service makes it very convenient for employees because they no longer need to open an account in the bank of the employer. He added that this is also convenient for the employer, especially MSMEs, because they don’t need to maintain a large balance to access payroll services.
He noted however that around 40 percent of payroll payments goes to e-wallets.
“And that’s a really big deal because that means that these people were traditionally unbanked,” Pansacola said.
The Bangko Sentral ng Pilipinas has said that it sees fintech as crucial in its goal of financial inclusion, with more than half of the country’s population not having a bank account.
“Our goal is really MSMEs, and seriously just helping provide them access to the power of big banking which they normally don’t have access to,” Pansacola said.
He however also noted that digital invoicing is still not accepted by the Bureau of Internal Revenue, but the agency is moving towards this goal.
“We are looking to be part of that beta program so that our customers can issue official BIR approved digital invoices through our platform.”