Philippines: NextPay, a digital banking platform for small businesses and entrepreneurs in the Philippines, has secured US$125,000 in pre-seed funding from Y Combinator (YC).
Y Combinator is popularly known as the launchpad of many iconic startups such as Airbnb, Dropbox, Stripe, and Twitch.
NextPay said in a statement that fresh funds will be used to expand its line of digital banking services for payments, credit, and personal cash management.
The fintech firm is also looking to partner with human resource and accounting software companies to further streamline enterprise financial operations.
Launched in 2020, NextPay is an alternative to bank accounts for small businesses and entrepreneurs. Its platform enables companies to collect customer payments via digital invoices, manage their cash, and pay their employees, suppliers, or bills in batches to any bank or e-wallet.
NextPay operates on a pay-per-use model and does not require any set-up fees and minimum balances.
“Our goal is to empower smaller businesses with a spectrum of banking services that were previously unavailable to them because of the steep requirements and high fees that are typically aimed at larger, more developed companies that can afford them,” said Don Pansacola, CEO and co-founder of NextPay.
“NextPay wants to help the Philippines bounce back. We want to enable growing enterprises to maximize their capital, reach more customers, and generate more jobs and opportunities. This then stimulates economic transactions and creates a demand for stronger partnerships. It’s a domino effect,” he added.