Startup shakes hands with global digital payment firm to revolutionize Earned Wage Access in Vietnam
Startup shakes hands with global digital payment firm to revolutionize Earned Wage Access in Vietnam
A Vietnamese startup has entered into a deal with Visa to develop payment solutions through the Earned Wage Access (EWA) platform in Vietnam.
Nano Technologies and Visa executives exchange documents after signing them in Vietnam, May 6, 2024. |
Nano Technologies, a pioneering EWA startup which owns the Vui App, and Visa announced their collaboration in a press release on Monday.
The Vui App facilitates EWA, also known as on-demand or instant pay, an innovative payment method allowing employees to access a portion of their earnings before their usual payday.
In Vietnam, many middle- and low-income employees face exclusion from conventional banking facilities, rendering them susceptible to predatory lending practices.
A study conducted in 2023 by Vietnam's Policy and Law Department surveyed 3,000 employees, revealing that 17 percent of the workforce frequently borrows money due to insufficient funds between paydays.
Offering access to pay on demand for employees, EWA presents a viable alternative to conventional payday loans or cash advances, avoiding the burden of high-interest rates or excessive fees.
The EWA model promises to introduce flexibility into how businesses provide employees with convenient access to their earned wages, thereby fostering financial inclusion and promoting digitalization in Vietnam.
For four years, the Vui App has been active in Vietnam, amassing a diverse client base spanning across multiple industries such as retail, garments, plastics, and wood manufacturing.
By integrating with employers' HR management systems, the app facilitates employers in granting their employees access to their accumulated wages, not future earnings.
Since its launch, over 300,000 employees have utilized the app to access their accrued wages, empowering them with enhanced control and accessibility to their finances, aiding in bill management and coping with unforeseen expenses between paydays.
“We are excited about the transformative potential of this collaboration and its positive impact in promoting financial inclusion,” said Dung Dang, Visa country manager for Vietnam and Laos.
“This collaboration will usher in a new era of real-time, on-demand wage access for employees, facilitated by Visa's advanced digital payment capabilities.”
This partnership holds immense potential to deliver game-changing impact for banking partners in payroll banking services and further drive financial inclusion in Vietnam, said Dzung Dang, CEO of Nano Technologies.
