More
    HomePartner ContentSA’s Earned Wage Access Fintech Paymenow Enters Pakistan with Shariah-Compliant Offering

    SA’s Earned Wage Access Fintech Paymenow Enters Pakistan with Shariah-Compliant Offering

    Published on

    spot_img

    Paymenow, a South African fintech providing earned wage access (EWA), has partnered with Neem, a financial services provider based in Pakistan, to introduce a Shariah-compliant EWA solution, Neem Paymenow, in Pakistan. This marks Paymenow’s latest international expansion following its success in African markets.

    EWA, commonly known as on-demand pay, allows employees to access a portion of their earned wages before their official payday. By offering this service, Paymenow aims to address financial liquidity challenges faced by workers, particularly those in underserved and underbanked markets. The fintech was founded in 2019 by former Springbok rugby player Bryan Habana, now Chief Client Officer, and Deon Nobrega, the group’s CEO. The firm’s core mission has been to promote financial wellness in South Africa, with plans for broader expansion.

    In 2023, Paymenow secured a R250 million debt facility from Rand Merchant Bank to fuel its growth and has since expanded operations into Namibia, Uganda, and Zambia. The fintech’s focus on addressing financial inclusion challenges in emerging markets has propelled its interest in Pakistan. With its population of around 240 million, largely comprising blue-collar workers with limited access to formal credit sources, Pakistan presents a fertile ground for Paymenow’s EWA solution.

    “Pakistan mirrors many of the socio-economic conditions we see in South Africa,” said Deon Nobrega. “With such a large segment of the population financially underserved, there’s a clear opportunity to make a positive impact, particularly in sectors like retail, logistics, healthcare, and manufacturing.”

    Currently, only 2.5% of Pakistan’s population has access to formal credit sources, creating a gap for financial solutions that can alleviate immediate financial pressures for workers. Through its partnership with Neem, Paymenow aims to fill this void. Neem, a fintech providing embedded financial services via a banking-as-a-service platform, has helped to develop the new product, Neem Paymenow, which will allow workers to access up to 40% of their wages before payday.

    The collaboration was facilitated by both companies’ mutual investor, DNI Group, and positions Neem Paymenow as a tailored solution for Pakistan’s financial landscape. The platform, available in both Urdu and English, also incorporates gamified educational content covering essential financial literacy topics like savings, budgeting, and fraud prevention, further aiming to enhance users’ financial knowledge.

    Security remains a critical aspect of the service. Neem Paymenow is ISO27001 certified and GDPR compliant, with the fintech conducting annual penetration tests and implementing robust safety measures to protect sensitive payroll data.

    Deon Nobrega emphasized that while the expansion into Pakistan is a major step forward for Paymenow, the company’s commitment to South Africa remains steadfast. “We have seen significant success in South Africa by addressing key financial challenges faced by many employees. As we explore new markets, South Africa remains our primary focus. Ensuring Paymenow’s continued growth and impact at home is integral to our long-term strategy,” he said.

    Paymenow’s expansion into Pakistan signals its ambition to become a global leader in the earned wage access space, leveraging local partnerships to provide tailored financial solutions in emerging markets. As economic inequalities and access to financial services continue to pose challenges, the fintech sees itself as part of the solution — bridging the gap between underserved populations and financial empowerment.

    Latest articles

    ‘Stay in It’: How Over 200 Interviews and a LinkedIn Post Led to a $2.35M Seed Round for Orca

    The startup’s latest raise marks a landmark achievement as one of the largest seed rounds ever secured by an all-female founding team in Africa.

    South African Anti-Fraud Startup Orca Secures $2.35M Seed Round to Protect Emerging Market Payment Rails

    The round was led by pan-African venture capital firm Norrsken22, which previously anchored the company’s $550,000 pre-seed round in early 2024.

    European VC Newion Leads $2.1M Seed Round for SA Fintech NjiaPay

    The Amsterdam and South Africa-based startup, spun out of communications app Talk360, is bringing European-style payment orchestration to the African mid-market.

    Algerian Super-App Yassir Buys Uno Hypermarkets to Fill the Jumia-Shaped Hole

    The rumoured unicorn is capitalising on Jumia's recent market exit by merging its digital ecosystem with a brick-and-mortar footprint.

    More like this

    ‘Stay in It’: How Over 200 Interviews and a LinkedIn Post Led to a $2.35M Seed Round for Orca

    The startup’s latest raise marks a landmark achievement as one of the largest seed rounds ever secured by an all-female founding team in Africa.

    South African Anti-Fraud Startup Orca Secures $2.35M Seed Round to Protect Emerging Market Payment Rails

    The round was led by pan-African venture capital firm Norrsken22, which previously anchored the company’s $550,000 pre-seed round in early 2024.

    European VC Newion Leads $2.1M Seed Round for SA Fintech NjiaPay

    The Amsterdam and South Africa-based startup, spun out of communications app Talk360, is bringing European-style payment orchestration to the African mid-market.