INDUSTRY FOCUS: FINANCE

Continued from page 10 there is also access to an Allan Gray interest-bearing money market savings account which is not something most employees would benefit from without Paymenow. “We have made decisions based on macro-economic structure and micro-economic details where we can aptly ensure we deliver a platform that allows people to be financially educated and included,” Habana furthers.

Again, the results speak for themselves. Data shows that financial responsibility is quickly improved when working within the parameters of an earned wage access system that is centred around financial wellness.

“We can share lot of data,” explains Habana, of the initial pitch with nervous employers who may have moved these initiatives down the priority list during tough times. “We have completed four million transactions on the platform and we can explain that even when people are given access to 25% of the already earned wages, they are only using 12% because they know it is their own money and that it is salary deductive – they quickly become responsible. Compared to a payday loan, there is no ducking and diving.”

Sustainable Growth

After starting out in business just before the pandemic and its ensuant disasters, Paymenow has always been focused on growth in tough times. The company launched with its first client just a week before lockdowns came into place. Now, with more than three years and a quickly growing number of transactions under its belt, the team behind Paymenow is looking forward with optimism.

“We started out as four guys in a small office,” remembers Habana. “We are now 30 people with 15 more as part of the network. We are processing more than 350,000 transactions per month compared to March 2020 where we processed 81. In October 2020, we celebrated wildly when we processed 100 transactions in a day.”

Since inception, the company has moved into new geographies including Namibia, Zambia, Lesotho, and eSwatini. This expansion has come from three factors that others cannot replicate: amazing relationships with clients, scalable technology, and strong backing from shareholders.

“I was wet behind the ears” smiles Habana, “and our CEO put in a lot of the foundations to make sure we were legally compliant and technologically compliant. Building scalable tech was important, but building tech with the appropriate compliance was even more important as we readied for corporate South Africa.”

A trait he has had to learn has been the requirement for constant pivoting. With earned wage access available in some form in almost all countries around the world, the company has had to be nimble in its approach to ensure sustainability. “You must stay ahead of the curve and understand where growth is happening,” he states. “The scalability of our tech and the proven data in other jurisdictions has made us the leader of the pack and that is something we are incredibly proud of.”

Despite challenges in South Africa, industry-leading status has opened new doors for the company, and Habana and team are certain that there remains major prospects. He highlights the issue of lacking public transport as a major driver of growth. Without an efficient bus or train system in most metros, many still rely on taxis to commute. This requires cash up front. “We believe that the South African market will take our focus for some time, but given the fact that there are common currency zones, there are big opportunities.

There are big and quickly growing economies in Africa where we have learnings, and others where we have some multinational clients with a base,” he says of sub-Saharan Africa which has better prospects than South Africa alone, expecting GDP growth of 4.2% after 2024 for the rest of the decade.

“We have to look at the size of the formally employed market – that dictates how big an opportunity is. We have to understand how we can fund it, and we have to make sure we can scale,” he says of growth in new nations.

Appetite For Winning

As the company scales and hits the radar of more employers, banks, and other financial institutions, there is a clear strategy and goal in place which will help Paymenow to be single-minded in its drive.

“We are only concerned about growth and continuing to improve our product offering while being sustainable,” affirms Habana.

“We have an audacious goal of one million people having access to Paymenow in three to five years. However, you cannot put yourself at massive risk - you have to be strategic and you have to have the right network to enter the market.”

Alongside its shareholder, using its growing reputation, and with Habana passionately leading from the front, this financial wellness offering will continue on its mission of restoring people’s dignity and building sustainable financial inclusion in Africa.

“In corporate, there is a lot of opportunity for winning. We always want to be a leader of the pack and my affection for wanting to be at the top remains,” he says. “Our service delivery is one of our USPs, and the manner in which we engage with employers and employees is exceptionally key for us. We remain positive, but conservative. Having a feel-good story discussion while focusing on bottom line profitability is important.”

Personally, Habana is excited about all that has been achieved so far, but he is clearly enthused about what is still to come. “I am still far from where I want to be in my life five years after retiring from rugby. A pro athlete knows how to work hard, sacrifice, dedicate themselves, and communicate. On a rugby field, I was with 14 other CEOs – they were the best of the best. In business, you have to communicate in a totally different way.”

Evidently, he has been successful. Paymenow was the winner of the 2022 World Summit Award for Business and Commerce and is already making progress with its long-term vision of changing a vicious debt cycle into a savings mindset while turning employees into financially resilient citizens.

“It has been tough – we have made mistakes, the tech stuffs up, we have vigorous inhouse debates, but we wanted to get to bottom line gross profit and that is what we have all aimed for. Now we want to grow and scale appropriately,” he concludes.

Content sponsored by Paymenow