KUALA LUMPUR – Malaysian fintech company Payd has raised US$400,000 in a seed extension round with A2D Ventures, Orbit Startups, and AngelSpark.

The successful capital raise marks a significant step in Payd’s mission to enhance the financial wellbeing of employees across Southeast Asia, the company said.

The fresh funding will fuel Payd’s expansion in Malaysia and Thailand, where it offers Earned Wage Access (EWA) – a service that allows workers to access their salaries as they earn them rather than having them wait for payday.

By giving workers greater financial flexibility, Payd aims to ease financial stress, improve productivity, and boost employee loyalty.

In early 2024, People Matters Global predicted EWA would increase in popularity in key markets such as Southeast Asia, and the solution has since been adopted by more companies in the region.

EWA: A growing solution for financial wellbeing

With a customer base exceeding 100,000 employees, Payd is positioning itself as a key player in the employee financial wellness market. The company has already secured partnerships with major employers in Malaysia, including McDonald’s, Starbucks, KyoChon, Banyan Tree, and Valiram.

In Thailand, Payd is rapidly expanding, working with Plan B Media, Ippudo Ramen, Salad Stop, Buzzebees, and Hello Bangkok Magazine. The company is also making headway in the hospitality sector, onboarding a globally recognised hotel chain, and the insurance industry, collaborating with large corporate clients.

For businesses, Payd’s offering goes beyond a simple perk. It serves as a strategic tool for talent retention. Employers leveraging EWA can create a more engaged, satisfied workforce, leading to lower turnover and reduced hiring costs.

Investor confidence in Payd’s future

Investors see Payd as a company with the potential to reshape financial access for underserved communities.

“Joining Payd’s journey aligns with our commitment at A2D Ventures to backing solutions that transform industries and impact the lives of the underserved,” said Ankit Upadhyay, general partner at A2D Ventures. “We’re confident that Payd’s platform will make a lasting impact on employee financial well-being across Southeast Asia.”

Nick Ponomarev, senior investment analyst at Orbit Startups, highlighted Payd’s role in bringing financial services to the unbanked and underbanked – a demographic often overlooked by traditional banks.

“With a growing trend of people transitioning into the middle class, Payd is uniquely positioned for growth, unlocking new opportunities to evolve into something bigger than an EWA platform, by bringing new financial services to a significant portion of the low and middle-class population,” he said.

A market ripe for innovation

The demand for alternative financial solutions is surging across Southeast Asia, where many workers still rely on high-interest loans or informal lending to bridge cash flow gaps.

Payd’s model provides a more sustainable alternative, empowering employees while giving employers a competitive edge in attracting and retaining talent.

With its latest funding round, Payd is setting the stage for broader expansion, potentially unlocking new fintech opportunities beyond EWA.

Apart from Payd, other fintech firms in offering EWA in Southeast Asia include Paywatch, whose debt-free EWA solution is offered by employers in Malaysia, the Philippines, Indonesia, and South Korea; Indonesian fintech firm GajiGesa; and Vietnamese EWA providers Nano Technologies, GIMO, Vui App and Ekko.

While different groups are currently focusing on different segments of the Southeast Asian market, Payd remains relevant to its home country Malaysia’s burgeoning gig economy, which reportedly has at least 3 million own-account platform workers.