Paynamics chairman and co-founder Ronald Magleo
MANILA – Increased demand for digital payments solutions makes officials of Paynamics Technologies Inc. optimistic of having at least 315,000 micro, small and medium enterprises (MSMEs) using their services in the next five years.
In a virtual launch of the electronic money (e-money) facility Paynamics Biz on Tuesday, Paynamics chairman and co-founder Ronald Magleo said the SME market accounts for about 99.4 percent of registered businesses in the country.
He said there are about 1.1 million registered SMEs in the country and only a few generally use digital mode of payments before the pandemic hit.
“I guess the target is around 315,000 MSME in the next five years so the tall order is to acquire at least one-third of that in the next years. And hopefully create a momentum,” he said.
To date, Magleo said payment acceptance is the “key pain point” but there are lots of MSMEs that need help in digitizing their businesses.
He said Paynamics is looking at offering cash ledger features “because a lot of these MSMEs still use pen and paper when they book cash transactions” as well as offer the capability to track payments.
The fintech firm caters to MSMEs by servicing the latter’s needs for payment collection and disbursement.
It aims to register about 100,000 e-payment transactions per day next year to have over 100,000 registered merchants that are active e-payment users by 2023, and to have 800,000 e-payment transactions per day by 2025.
The Paynamics Biz currently provides MSMEs two digital payments services -- the Pay via Link, which is for merchants that sell through Facebook and Instagram as well as for freelancers, consultants, and professionals who need to collect payments through e-mail or messaging platforms; and the All-in-One QR Code, which is for merchants with physical stores.
During the same briefing, Paynamics chief executive officer and co-founder Mylene Chua-Magleo said a big shift in payments system happened during the enhanced community quarantine (ECQ) and the government’s bid for online sellers to register their businesses.
She said the Paynamics Biz will allow MSMEs to sign up for the facility for free and fees for successful transactions are “very minimal”.
“The beauty of the solution is it gives a good balance between the merchants and the customers knowing that we have a good automated KYC (know-your-customer) in place…It makes sure that the sellers that are registering in the platform are legitimate,” she added.
Chua-Magleo said MSMEs are slowly adapting to digital payments because of consumers’ behavioral change during the pandemic. (PNA)
