Two local financial services companies teamed up to launch a loan product dedicated to micro, small, and medium enterprises (MSMEs).
PayMongo, a merchant payment solutions provider, launched a digital financial program called PayMongo Capital within its platform. Rolled out this November, the product is powered by GoTyme Bank, a locally owned digital bank.
PayMongo Capital or Capital is a digital lender offering a flexible or adjustable loan collection and fast approval of lending requests.
Businesses can avail of up to P500,000 worth of loans using their GoTyme bank accounts.
We’re proud and excited to announce our newest product, PayMongo Capital powered by GoTyme Bank 🚀
Unlock your business’ growth potential with flexible financing. No hidden fees. No collateral requirements. Just straightforward financing to help you achieve your business goals. pic.twitter.com/j1vvWwsTtT
— PayMongo (@paymongo) November 24, 2023
In a statement, Jojo Malolos, PayMongo’s chief executive officer, said that this initiative stemmed from its commitment to support and promote financial inclusion among owners of MSMEs.
This goal was also shared by GoTyme, hence the partnership.
“At PayMongo, our unwavering commitment to support the growth of small and medium-sized businesses takes a groundbreaking leap with our partnership with GoTyme Bank. This collaboration is a game-changer for PayMongo merchants, unlocking additional capital to propel their online enterprises toward unparalleled success,” Malolos said.
“Together with GoTyme, we capitalize on our shared vision for financial inclusion, leveraging our familiarity with each other to simplify financial solutions,” he added.
To access the Capital, interested merchants can find this service on the list of products shown on PayMongo’s official website here Payment Gateway for Businesses | PayMongo.
GoTyme is a company under the Gokongwei Group of Companies. It was launched in 2020.
PayMongo, meanwhile, is a payment tracker used by numerous organizations in the Philippines. It was founded in 2019.
Features of PayMongo CapitalÂ
One of the main highlights of the Capital’s services is its flexibility when collecting loans from the debtors.
During a press conference, Albert Tinio, co-founder of GoTyme Bank, explained that PayMongo does not put pressure on merchants if they are unable to pay due to low sales.
“If my business is not doing good for that month, I am forced to pay or I am obliged to pay the fixed amount that I agreed to. The beauty of our product is that if that merchant is having a slow season or a slow month, he is not obliged to pay us this fixed amount,” Tinio said.
Tinio noted that if a debtor earns less, the Capital adjusts to the income accordingly.
“What we take is a percentage of his sales. If it’s lower, then we also take lower. If it’s faster, Christmas season na, maganda na yung benta, mas mabilis rin kaming bebenta. Nararamdaman ba ni merchant yun? Hindi. Kasi mas maganda benta niya,” he said.
Other key features of this application are:
- Transparent pricing – no hidden fees, processing fees, penalty fees or interests. Businesses are only required to pay a flat fee for their loans.
- Flexible terms of the loan instead of a fixed payment term – PayMongo and GoTyme offer customized or tailor-fitted payment terms according to a merchant’s preferences of financial capabilities.
In a separate statement, Tinio expressed hope that both can make business loans “less intimidating,” especially to small entrepreneurs, via the Capital.
“Going into loans is a big step for GoTyme Bank and we are optimistic that with the partnership with PayMongo, we will be able to give SMEs the best customer service and peace of mind,” he said.
“By making the process easier and less intimidating, merchants are better empowered to make the best choices for their business,” he added.
