Homegrown fintech startup NextPay partnered with local online-to-offline (O2O) payments provider Ayannah so users can disburse funds to unbanked recipients, estimated at seven out of ten Filipinos.
The partnership enables small businesses to send money to employees, suppliers, and customers via 10,000 partner remittance centers nationwide for P5 minimum transaction fee.
NextPay users can send money to a single individual or do batch disbursements to several recipients.
“Majority of our population are still unbanked, with only three out of 10 Filipinos owning a bank account," NextPay Chief Executive Officer and Co-Founder Don Pansacola reiterated.
"Even with the pervasiveness of eWallets, a huge part of the population does not have access to basic financial services," he pointed out.
"NextPay serves unbanked recipients, allowing them to receive funds through the nearest remittance centers in their area.”
Senders simply click on the “disbursements” tile on the NextPay dashboard and input the personal details of the recipient.
Next, they choose “remittance center” as their receiving option and confirm the transaction.
Recipients will then receive a text message and an email containing the transaction reference number.
They can claim the funds through 10,000 branches of remittance centers nationwide, including LBC, Tambunting, Raquel Pawnshop, Panalo Express, RD Pawnshop, ACM-VIP, and Sendah Direct Agents.
Disbursement through remittance centers cost a minimum of P5 per transaction.
“This online-to-offline service simplifies the process of disbursements for growing businesses and individuals,” Ayannah Founder Mikko Perez pointed out.
Since securing fresh funding in the first half of 2021, NextPay also introduced other digital financial solutions, such as payment links and BETA tested corporate cards.
Payment links are easily generated and can be single-use or reusable.
They allow businesses to collect customer payments easily by letting them click on a link that allows them to settle with the payment method they prefer.
The new feature is useful for online sellers who simply attach the payment link on their product description.
On the other hand, corporate cards allow business owners to monitor transactions via a virtual debit card where bills, subscriptions, and company payments can be charged.
They no longer need to use their personal cards for business expenses.
After raising $1.9 million in a funding round led by Singapore-based venture capitalist Golden Gate Ventures and Gentree Fund, a private investment vehicle of the Sy Family, owners of the SM Group, "We have accelerated our growth and introduced more digital banking solutions to support the needs of growing business, freelancers, entrepreneurs and even startups,” according to NextPay Chief Experience Officer and Co-Founder Aldrich Tan.
Launched amidst the 2020 pandemic, NextPay empowers growing companies, entrepreneurs, and freelancers with a spectrum of digital financial services previously unavailable to them due to steep requirements and high fees.
“We enable small businesses to make big banking transactions with ease and convenience at very minimal costs," Pansacola stressed.
These new solutions provide flexible options to transact and help users focus more on growing their businesses, he concluded.