Malaysia – Malaysian fintech and digital payment provider Paydibs Sdn Bhd has launched a merchant financing facility in partnership with Anchor Capital Sdn Bhd, allowing eligible merchants to access working capital through its digital platform.
Anchor Capital is licensed by the Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan Tempatan, or KPKT).
Under the facility, repayments are automatically deducted from merchants’ weekly payment settlements and vary according to transaction performance.
Paydibs said the structure is intended to help merchants manage cash flow while continuing their business operations.
The launch is Paydibs’ first partnership with a financing provider and expands the range of financial services available through its merchant ecosystem.
“Payments are where our relationship with merchants begins, not where it ends,” said Tee Kean Kang, Chief Executive Officer of Paydibs.
“Merchant financing is a natural extension of our mission to go beyond transactions. By leveraging the transaction insights and relationships we have built with our merchants, we can help make access to working capital more relevant, convenient and seamless for eligible businesses,” Kang continued.
Paydibs currently offers payment and business-related services including its NEO all-in-one payment terminal for SME merchants, as well as business protection through a partnership with Great Eastern General Insurance.
The company cited SME Bank’s study, which found that 81% of respondents planned to obtain financing for working capital or business expansion.
Separately, a survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) found that 61.1% of businesses identified complexity and lengthy processes as key difficulties in accessing government financing programmes.
Paydibs said eligible merchants must have at least 90 days of continuous digital transaction activity on its platform before receiving a financing offer through their merchant portal. Offers are subject to final assessment and approval.
The assessment considers the merchant’s transaction performance, know-your-business (KYB) information and automated credit assessment.
Merchants can review and accept an offer and digitally sign the financing agreement through the portal. Subject to final approval and completion of the required documentation, approved funds can be disbursed on the same day, according to Paydibs.
The facility has a six-month, or 26-week, percentage-based repayment structure linked to merchants’ transaction activity. Instead of a fixed weekly instalment, merchants repay an agreed percentage of their weekly payment settlements.
“This is what it means to go beyond payments. We are leveraging the transaction relationships and insights built through our platform to make financial services more accessible and relevant to our merchants,” said Kang.
“Once a merchant has established a transaction track record, eligible financing offers can be made available through the same platform they already use to manage their payments,” he continued.
“We see Paydibs evolving from a payment provider into a more complete fintech growth partner for merchants. Our focus is to support merchants throughout their business journey – from getting paid, to protecting their business, to accessing capital when they are ready to grow. Merchant financing is an important step towards that vision,” Kang concluded.
The company said it plans to continue exploring and introducing financial and financing solutions through its merchant ecosystem, with a focus on services that are accessible, relevant and connected to how merchants operate their businesses.
