GetPaid's Ambition to Healthy Employees' Finances with Early Salary Access

GetPaid also enliven startups earned wage access (EWA) in Indonesia which 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.

GetPaid was founded in 2020 by Mitchell Goh and Ian Goh. Mitchell, who started his professional career as a social worker, then continued to handle employee benefits and finances. From there, he saw that most employees did not have financial methods that could help them if there was an unforeseen need. After one year, GetPaid has spread its wings to Indonesia since September 2021 and appointed Joses Tjohjono as regional head, Managing Director of GetPaid Indonesia.

Like other EWA startups, GetPaid focuses on providing employees with early salary access. The company does not position itself as a lending company because there is no payment time frame, interest fee, or late fee. Cost only flat per transaction that employees pay when they want to access their earned wages.

“GetPaid will only charge when an employee makes a withdrawal. GetPaid vs . comparison other EWA companies, we will be more flexible and provide transaction fee options for the convenience of the company/employee,” said Joses when contacted DailySocial.id.

Going further, GetPaid provides three cost options. First, at 4% per transaction, then Rp. 36 thousand per transaction, and a subscription of Rp. 72 thousand per month. This fee is charged when you make a withdrawal for the first time and there will be no more discount fees if you make a transaction in the same month.

Salary access will be granted if the company registers their employees who are entitled to such access through GetPaid. Next, employees can open and access the GetPaid application to withdraw salaries. Each employee has a withdrawal limit and a salary calculation allocation that can be withdrawn.

Take for example, employees who have worked for 10 days, can only access their 10 days salary/withdrawal limit. Joses said, the company recommends access to a limit of 50-80% of the total salary so that employees still get the remaining salary on the due date. “And the funds obtained are directly from GetPaid. Then the company (employee) will pay back to GetPaid on the company's pay date."

Joses did not specify the specific target users of GetPaid. He just said he was targeting all employees registered with the company to use the GetPaid facility. As of now, the solution has been used by 20 companies. "We are targeting 50-100 companies to join us this year."

The company's expansion will be supported through the initial funding of $1,15 million (approximately Rp16,4 billion) obtained in January from Grovey Pay and Nityo Infotech Service. This investment allows GetPaid to scale up and expand EWA's products to other countries in Southeast Asia.

Push to reduce consumer loans

Joses continued, the spirit that GetPaid wants to convey is to reduce people's dependence on consumer loans which are considered detrimental because of the high interest rates. This condition is true. 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.

“GetPaid can help employees who need emergency funds without the need to borrow. Our plan in the future is to eradicate online loans using GetPaid, because we are not online loans.”

The company will continue to educate the public about the EWA solution which is considered still new in Indonesia. Especially since the pandemic, many people need funds at the beginning to survive. EWA can be a solution to get an early salary instead of a loan because it has no interest or late fees.

Due to the vast potential, he is optimistic that in the future EWA will be in demand by companies because it is profitable. The company does not need to be disturbed cash flowto provide cash receipts to employees. "We are still educating the public that don't be afraid to use the facilities provided by GetPaid because we are a healthy financial solution for families," concluded Joses.