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April 28, 2024
April 25, 2024
High financial stress, low productivity, poor commitment, lack of loyalty, increased absenteeism, and rising accidents are key issues that companies face with regard to their employees. Based on this understanding, Aroldo Dovalina conducted a series of talks with collaborators and human resources directors from several companies and concluded the common denominator companies look for.
Everyone seeks mental, professional, emotional, physical, and economic well-being as well as stability. Besides, all organizations wish to enhance the experience of their employees and augment productivity. Thus, Dovalina established Paynom in 2014 to provide an advanced workplace wellness platform for companies to help them retain talent and improve employee experience.
Paynom’s vision is to provide access to financial well-being to not just Mexico but also LATAM. In 2015, the company was established as a salary-on-demand platform, which worked wonders in Mexico. Later, in 2023, the company evolved into a workplace well-being platform since it focuses not just on financial well-being but also the general well-being of employees as a whole.
A majority of employees tend to go broke prior to getting their next salary. Thus, Paynom decided to step in to address this issue. It enables other company employees to cover financial emergencies without having to compromise their income.
So far, Paynom has led to incredible outcomes – individuals who use the platform now work 22% more hours every month. This demonstrates the increased commitment of employees to their companies. Moreover, the turnover is decreased by a maximum of 16% in less than a year.
The platform gives a top-notch value proposition based on four pillars. The first is telecommuting. Through digital solutions like “Trabajo Flexible”, organizations can comply with “NOM-037”. This facilitates the Mexico home office because it makes it simpler for them to provide a monthly payment to employees and allows them to pay for services like electricity, internet, landline, water, and cable TV. Additionally, one can also purchase insurance, save money, buy online, and perform electronic transfers.
As a matter of fact, Paynom is a leading platform in the Latin American fintech ecosystem in which one can use salary advance, Trabajo Flexible, and salary on demand. It is a tool that offers the essential resources to enhance the employees’ quality of life while reducing financial stress.
“This differentiating factor allows Paynom to promote the financial inclusion of Mexicans since only 68% have access to any financial service and 49% have a bank account, percentages that have practically not changed since 2015, according to the National Survey of Financial Inclusion (ENIF) 2021,” says Aroldo.
The second pillar is the continuance of education. Paynom has become a facilitator of continuing education by allying with SEMINAT, an educational platform. Presently, workers can easily access new learning experiences that will play a major role in their professional growth.
If they study a course, diploma, or postgraduate, it will also help them in getting paid better. In fact, they can get into world-class educational institutions at preferential costs, with scholarship and financing support of a maximum of 70%.
Workers can also access the formal financial system to get peace of mind. This is what the third pillar of Paynom is – financial inclusion. The platform provides a range of solutions like transfers, payment of services, contracting insurance, payments with QR codes in over 30,000 companies, payroll advances, and voluntary savings to augment pensions.
Last but not least, the final pillar is technology. “The adoption of technology increases productivity and efficiency at an accelerated pace, in addition to processes that were previously manual can now be attained quickly with apps and digital systems that allow workers to access a universe of solutions and benefits, such as workplace well-being platforms,” says Aroldo.
Paynom is highly focused on the well-being of employees. For instance, with regard to Nearshoring in Mexico, companies willing to augment productivity and retain talent can find in this platform a solution to ensure the work well-being of their employees.
Among the key challenges of Paynom is to continue fostering family financial education and financial inclusion in Mexico. In order to address this, the company has developed several strategic alliances with institutions and businesses that enable it to obtain a greater reach. Besides, there are low levels of financial inclusion in Mexico.
Based on the 2021 National Financial Inclusion Survey (ENIF), just 68% of Mexicans have access to any financial service. In fact, nearly half of the adult population reports having a minimum of one financial product.
What’s more, retirement savings accounts are at 40%, the second-most widespread product. Nonetheless, even after 26 years of the existence of the SAR or Retirement Savings System, voluntary savings are still a problem – according to ENIF 2021, only 6% of people in Mexico possessing an AFORE Account tend to make voluntary contributions.
When Paynom was initially established as a salary advanced platform for the purpose of paying utilities online and accessing money transfers, it aimed to contribute to enhancing the financial well-being of Mexicans. This was mainly a result of the Mexican population’s financial health diagnosis.
It was found that it is precarious since just 58% can cover their expenses based on their current income. Moreover, just 43% can respond to an economic emergency based on their savings. Lastly, merely 35% tend to keep a record or budget of their expenses and income.
Over the years, Paynom’s transformation into an employee well-being platform has changed its objectives as well. Today, the company is more focused on providing round-the-clock financial support, reducing financial stress, and helping workers avoid late payment charges for loans or credits.
In order to attain these objectives, Paynom has an experienced team with several individuals possessing senior-level experience. Additionally, the team also comprises innovative and young talent.
Presently, in the fintech ecosystem of Latin America, Paynom is the only platform that listens to the needs of organizations concerning the betterment of their labor practices. Hence the company’s mission is to contribute to the development of inclusive and healthy workplaces for everyone through the use of technology. As a matter of fact, strategic alliances and technology are the key to the evolution of Paynom.
What makes Paynom different from its competitors is its mission as a workplace well-being platform. “Through a decade in the market, it has evolved to join an increasingly interconnected world in which constant innovations and changes occur in which conscious consumption predominates and experiences gain relevance among consumers,” says Aroldo. Thus, Paynom, on the basis of technology and alliances, will continue to inculcate new services that contribute to its mission.
Paynom has established several strategic alliances with businesses including SEMINAT, Dapp, and Pluxee. It also works with several institutions, such as the National Commission of the Retirement Savings System.
Since its inception, Paynom has helped several businesses and workers in enhancing well-being. One of the best examples is of taxi drivers. This is among the many sectors entirely abandoned by financial services in Mexico. For over a year, Paynom has been successful in supporting taxi drivers in the southern part of the nation.
When a taxi driver begins working, he generally starts with zero pesos. However, he will require cash to purchase airtime for his cell phone and gasoline for the taxi. Else, he would not be able to get customer requests. Enter Paynom – it helps the drivers to get cash advances. Through this scenario, the company has not only proven its commitment but also its ability to respond immediately.
When it comes to the corporate world, Paynom offers access to salary-on-demand for workplaces with the maximum turnover from one place. It also provides salary advances for executive areas. And finally, those who work at home can access “Trabajo Flexible”.
Paynom’s past has been incredible and the future seems even brighter. Aroldo has several plans in place for the company’s advancements. In order to promote financial inclusion further, Paynom will incorporate Paynom Credit Card in 2024, which is its own credit card.
This year, the venture plans to explore other financial well-being solutions, expand to Latin America, and close series A.
Pull Quote: “Through a decade in the market, it has evolved to join an increasingly interconnected world in which constant innovations and changes occur in which conscious consumption predominates and experiences gain relevance among consumers.”
Company Description: Paynom is the pioneering workplace welfare, early wage access (EWA), and salary advanced platform in Mexico and the Latam Fintech ecosystem.
Company Name: Paynom
Founding Year: 2014
Office Locations: Monterrey, Nuevo León, México.
Official Website of the Company: www.paynom.mx
Name of the Featured Leader: Aroldo Dovalina
Designation of the Leader: Managing Partner and CEO
