Small businesses are often facing difficulties compared to bigger corporations when it comes to financial access. For businesses who want to seek a service or some sort of consultation, they need to pay a huge amount. For big industry players, they can definitely afford it. But, what about SMEs?
The Malaysia-based fintech, EasyPay Transfers, is looking a way on how to facilitate SMEs to ensure a more sustainable business model in this competitive field by allowing businesses to transfer money securely and most importantly at cheaper rates.
1. EasyPay Transfers focuses on businesses that are under-served by banks
EasyPay Transfers co-founder Nicholas See said that they are focusing on businesses that are under-served banks such as micro traders and other small enterprises. These small businesses are not given the chance to enjoy preferential rates as those offered to large businesses.
SMEs are generally overlooked by banks due to their small volumes of transactions or let alone they don’t have a proper credit history. Even though we are living in a digital era, there are still some entrepreneurs who still need to queue at the bank to do international transfers and sadly, they need to pay higher exchange rates which could be a burden for them.
2. “We want to help SMEs to reduce the cost of transaction”
Talking about the main reason behind the idea of starting EasyPay Transfers, the founders who have experiences in the financial services, technology and procurement industries pointed out the fact of how inconvenience it is for making international business payments at the banks. For instance, payments to China was an expensive affair.
EasyPay specialising in making payments overseas in a business-to-business (B2B) segment aims to tap this unresolved issue by facilitating SMEs as a whole.
3. EasyPay Transfers was launched in early 2018 providing cheaper rates for small businesses to do money transactions
The company obtained its license from Bank Negara three years ago that allows them to help small businesses transfer money securely at cheaper rates. Officially operated in early 2018, EasyPay offers its services to SMEs who made payments to China.
In 2017 alone, the total imports from China accumulated to RM 164bil and they saw an opportunity to serve the local businesses looking to perform payments to their Chinese counterparts.
Jared Ang, the co-founder shared that they thought of how they could make cross border remittances more accessible and affordable for smaller businesses. Backed by his experience in technology, they worked on how they can leverage technology to bridge the gap.
4. EasyPay charges a standard transfer fee of RM 15
EasyPay charges a standard fee of RM 15 regardless of transaction size. It is deemed to be cheaper than what the bank offers where the exchange rates are 50% lower. They are only services the B2B segment for now on.
The founder uttered that they give small businesses the corporate rate and they are able to do so because they don’t have high cost like banks. Besides, they can maximise the speed of transaction by partnering directly with banks.
5. EasyPay is now enabled to make payments to 15 more countries including most ASEAN countries
With the recently renewed license, EasyPay is now able to make payments to 15 more countries apart from China. India, Australia, Japan, the UK and most ASEAN countries are on the list. The transaction limit also had been increased from previously RM 200,000 to RM 2mil.
6. They are working with MDEC to amplify EasyPay’s volume
The company has also worked closely with the Malaysia Digital Economy Corporation (MDEC) to work with entrepreneurs. Under the institution’s eUsahawan project, there are over 5,000 eUsahawan members currently, which will contribute to EasyPay in further building its volume.
With this partnership, EasyPay aims to help these micro-enterprises with international payments. It is said that the service will be launched soon.
EasyPay has successfully raised RM 2mil in seed funding from local investors. For Nicholas See, the founder of EasyPay, he shared that he won’t be looking for fresh funds as he prefers organic growth.
Get to know more about EasyPay Transfers here