Vinmo Enlivens the EWA Industry, Promotes Faster Salary Disbursement Service

Vinmo adds lineup player earned wage access (EWA) operating in Indonesia, in an effort to reduce employee dependence on loans online flowering. This startup is carried by three people founder, including Kristoforus Giovanni, Adhi Pranata, and Sastra Hamidjaja, with a background of experience that supported each other in pioneering the presence of Vinmo.

Kirstoforus, for example, used to be a HR Manager who witnessed the phenomenon of employees who need emergency funds and apply for cash payments on a daily basis. Even the company could not help them because of the rules and bureaucracy that took a long time, even if they were approved. As for Sastra, he has worked for several foreign companies that implement EWA and he was inspired to present it in Indonesia, without disturbing it cash flow company.

Comes with Branding "cash receipt"

In a joint interview DailySocial.id, Christopher said Vinmo present in the midst of a loan boom online illegal and people need money to pay for urgent needs. Many people without thinking take a loan to an online application without paying attention to the high interest. “We have to work hard to educate the public, especially HR and the HR department Finance in the company to understand the EWA system,” he said.

In this regard, it introduces itself to the public with Branding digital kasbon, not EWA. EWA is indeed considered a current term that describes the main business Vinmo, but the word is less familiar to Indonesians. Therefore, the use of the word digital kasbon is expected to be more accepted. "But because now is the digital age, then Vinmo is here as a digital cash register."

Like most other EWA players, Vinmo is focused on providing employees with early access to salary so that they are more prosperous. The company does not position itself as a lending company because there are no payment terms, interest fees, guarantees, credit checks, or late fees. Employees who use Vinmo are only charged an administrative fee of 3% when making disbursements.

Kristoforus said that Vinmo's differentiation with other players is transparency and in terms of refunds, Vinmo offers longer payment terms then more flexible transaction fees. "So that cash flow the company is not disturbed, the source of cash funds is taken from Vinmo. When payday arrives, the Vinmo team will provide data to HRD regarding the use of Vinmo facilities and the amount that must be paid by employees to deduct their salaries.”

How Vinmo works

For the salary disbursement process, companies are required to become partners in Vinmo and register their employees. Next, employees simply download the Vinmo application, fill in the data, and wait for verification. After that, the funds will be transferred to the account according to the data filled in based on the application submitted within 1x24 hours.

As of now, since Vinmo started operating in September 2021, it is claimed that 30 companies have joined and more than 1.000 employees have downloaded the Vinmo application. "Our target this year is to reach 100 companies to work with."

This target will be pursued by various marketing strategies and the development of new innovations for applications. Among them, the addition of new features, such as e-wallets, digital paymentsand digital aggregator. Thus, the Vinmo application can meet all employee payment needs, not just faster salary access.

“There are so many companies in Indonesia and not all of them created by EWA. Our strength as a local company becomes more value because we really understand attitude, habitsand history Indonesian people."

EWA business potential

As is known, the opportunity for EWA to grow in Indonesia is still very large because it has a myriad of problems, especially from the payroll system which is an issue for most workers. According to BPS data, around 129 million workers face financial stress and difficulties caused by irregular cash flows, monthly payment schedules, unexpected expenses, and limited access to finance. The issues above make them finally "run" to borrow money from unofficial institutions, which often charge high interest rates and tense collections.

EWA is here to reduce people's dependence on online loans which are considered detrimental because of the high interest rates. Quoting from studies Health Living Index by AIA, money is the main source of stress in Indonesia. Household finances cause Indonesians more stress than work, relationships, or even their physical health.

Another global survey conducted by PwC in 2019 found that 67% of workers reported struggling with financial stress, meaning more than two-thirds of the working population are prone to migraines, depression and anxiety. Many studies highlight the effects of employee financial stress on business performance.

EWA can be a solution to get an early salary, not in the form of a loan because it has no interest or late fees. Also, it does not require a special license, unlike applying for a lending company in general because the guarantee is directly sent to you payroll employees, so from a business point of view it makes a lot of sense.