Fintech startup gives Saudi workers early access to salaries, commissions

Fintech startup gives Saudi workers early access to salaries, commissions
Michael Trueschler, co-founder of FlexxPay
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Updated 14 March 2021

Fintech startup gives Saudi workers early access to salaries, commissions

Fintech startup gives Saudi workers early access to salaries, commissions
  • FlexxPay has secured $4.5 million in funding to develop its services and expand further across the Kingdom

JEDDAH: Many people struggle to get by each month as they wait for pay day, whether due to sudden family emergencies or health issues not covered by medical insurance.

FlexxPay, a Shariah-compliant fintech company with headquarters in Saudi Arabia and the UAE, aims to address this issue by giving Saudi employees early access to their earned income, and in a way that is also feasible for their employers.

Through his work in the region for 17 years, Michael Trueschler, co-founder of FlexxPay, has witnessed many employees struggle with asking for advance payments to cover unexpected expenses that arise during the month.

“It’s a headache for the company. It’s a headache for HR, they have to listen to all the stories, take decisions. It’s not nice for the employee to explain themselves. There must be a better way,” Trueschler told Arab News.

This inspired him to establish FlexxPay in 2018 to help address the issue and give workers access to a range of earnings, including salaries, commissions, pensions and (soon to be launched) end-of-service benefits.

In February, FlexxPay raised $3 million in a pre-series A round of funding, on top of a previous funding round of $1.5 million, bringing FlexxPay’s total investment to date to $4.5 million. The company intends to use the funds to further enhance its technology platform and to grow its corporate client base in the region.

Truschler said that since the peak of the pandemic last spring, the platform has increased its monthly transactions sevenfold and expected an increase of more than tenfold in the next six months. “This is just the beginning of a significant expansion for us as people need solutions like FlexxPay more than ever.”

He added that customers who used the service are 60 percent more likely to use it again, and the average usage is twice per month.

FlexxPay claimed that by reducing employees’ financial stress, some of his clients have seen a 20 percent decrease in sick days, and less workload for HR teams as a result.

To use the service, an employee downloads the app and can see how much they have earned since the beginning of the month. Using the app, they can transfer a portion of that amount to their account without having to speak to HR or sending any request.

“The amount of money depends on the salary and the calculation is very simple. So, imagine you earn SR10,000 ($2,666). By the middle of the month, you’ve worked for 15 days for the company, but you don’t get paid and have to wait another 15 days. But you already earned SR5,000, so that’s money you can access,” Trueschler said.

The limit is based on the employee’s salary and the days that they have worked since their last paycheck to determine the available balance.

One of FlexxPay’s other services covers commission-based work, targeting sales-focused businesses. With salespeople driven by commission, a large portion of their income is dependent on their monthly performance.

“The issue is that they usually have to wait at least one month . . . often times three months, until the quarterly KPIs are confirmed and checked by the company. And then they get paid. But through FlexxPay, you can pay your sales guys on the spot, on a daily or weekly basis, when you see that they’re reaching the targets, you can instantly give them access to the commission,” Trueschler said.

According to the co-founder, FlexxPay has assisted companies to increase their sales by 17 percent, simply due to the tool that helps to motivate employees by giving them immediate access to their commission sums.

“It’s a human behavior, right? They are completely differently motivated. If you come in in the morning, you do a good job and, in the evening, you can see already the reward in your FlexxPay app, and you can access it. It’s a big push for salespeople to go the extra mile because they know they don’t have to wait two or three months for the commission,” he said.

When it comes to applying the service to pensioners, FlexxPay is already in discussions with its partner in the Kingdom, Riyadh Bank, to introduce it into Saudi Arabia.

“They are facilitating the discussions with the public entities. The objective is to offer them a white label solution that is like FlexxPay, but under a different brand from the entity so that they can route out to all the pensioners in Saudi Arabia,” Trueschler said.

Similar to regular salary advances, pensioners also face unexpected circumstances during the month. FlexxPay will give them early access to their available pension funds.

FlexxPay is also free of charge for companies, so does not require a separate budget. Most companies acquire the service, and unless it is used they do not need to pay.

“For the agreement we have with the company, the transaction fee is basically representing the SARS fee (software as a service fee) that the companies have to pay depending on how much the employees are using the platform and how many transactions are now in the agreement,” Trueschler said.

Most companies do not end up paying, as they choose to pass the fee on to the employees, he said. For a regular employee, the amount they withdraw does not change the transaction fee as it is fixed.


UAE to build waste-to-energy plants to burn two thirds of trash

UAE to build waste-to-energy plants to burn two thirds of trash
Updated 30 July 2021

UAE to build waste-to-energy plants to burn two thirds of trash

UAE to build waste-to-energy plants to burn two thirds of trash
  • Dubai is building a $1.1 billion waste-to-energy plant
  • Sharjah, Abu Dhabi also constructing facilities

RIYADH: The UAE plans to build a series of waste incinerators that will eventually burn up to two thirds of the country’s trash to deal with a growing refuse problem.

Dubai is constructing a $1.1 billion waste-to-energy facility, one of the largest in the world, while a smaller plant in being built in Sharjah and will begin operation this year, Bloomberg reported. Two further projects are being built in Abu Dhabi.

Burning trash creates carbon emissions, potentially making it harder for the UAE to reach its target of becoming carbon neutral by 2050.

However, Bee’ah, Sharjah’s waste company, will try to mitigate this by creating green spaces, install a 120-MW solar array on top of the plant and produce hydrogen from the garbage to fuel its rubbish trucks. Sharjah will also be able to close its landfill site.

Bee’ah CEO Khaled Al Huraimel said he wants to export the model across the region, including Saudi Arabia.

While environmentalist favor recycling over burning of trash, turning plastics and other waste into usable products is extremely challenging.

China’s recent ban on the importation of waste “has really changed the economic drivers,” said Mr.John Ord, a UK business director at engineering firm Stantec. “All of a sudden, we have a lot of waste that needs to be dealt with.”


Bitcoin tests the $40k resistance level

Bitcoin tests the $40k resistance level
Updated 30 July 2021

Bitcoin tests the $40k resistance level

Bitcoin tests the $40k resistance level

RIYADH: Bitcoin traded higher on Thursday, rising by 0.03 percent to $39,670.54 at 4:02 p.m. Riyadh time. Ether, the second-most traded global cryptocurrency, was up 0.44 percent to $2,291.72.05, according to data from CoinDesk.

Below is the latest news from the world of cryptocurrency:

Bitcoin buyers have been profitable, as the cryptocurrency tests the $40,000 resistance level. Sentiment has improved significantly over the past week, although some analysts believe it is time to pause before rallying again.

In a CoinDesk report, Justin Chuh, a senior trader at Wave Financial, said: “Bitcoin easily broke through $35,000, but I think it will probably have a harder time going through $40,000 this time.”

But attitudes could easily shift from bullish to bearish as bitcoin was still in a consolidation phase with strong resistance, the report added.

HIGHLIGHT

Bitcoin buyers have been profitable, as the cryptocurrency tests the $40,000 resistance level. Sentiment has improved significantly over the past week, although some analysts believe it is time to pause before rallying again.

Meanwhile, in a research paper published on Wednesday, Bank of America described central bank digital currencies as a more efficient payment system than cash. The second-largest bank in the US by total assets, said that digital central bank currencies could completely replace cash in the distant future.

A report released in May by blockchain infrastructure platform Bison Trails found that around 80 percent of central banks were exploring using digital currencies, with CoinDesk reporting that 40 percent were already testing proof-of-concept programs.

London-based Fabric Ventures has closed a $130 million fund to invest in early stage blockchain companies. One of its supporters is the European Investment Fund, which provided $30 million, marking the first time a European Commission company had invested in a fund focused on digital assets, said CoinDesk.

Stock and cryptocurrency trading app Robinhood has received a $32 billion valuation with its initial public offering and was set to debut on the Nasdaq on Thursday.

In a press statement on Wednesday, Robinhood priced its offering at $38 per Class A common share. The price is at the lower end of the $38 to $42 share price range that the company had targeted, and it planned to sell 5.5 million shares targeting an increase of $1.89 billion.

The firm is trying to reshape its image and said it was working on a new feature that would help protect users from cryptocurrency price volatility, while hiring a former Google graduate to improve the overall product design, according to CoinDesk.


Arab celebrity message app Yela raises $2.2 million funding

Yela has secured over a hundred A-list celebrities who fans can connect with, including Amr Diab. (Supplied)
Yela has secured over a hundred A-list celebrities who fans can connect with, including Amr Diab. (Supplied)
Updated 30 July 2021

Arab celebrity message app Yela raises $2.2 million funding

Yela has secured over a hundred A-list celebrities who fans can connect with, including Amr Diab. (Supplied)
  • The interactions on the platform can range from direct text messages to video clips

JEDDAH: Yela, a platform allowing users to get personalised video messages from their favorite Arab celebrities, has secured $2.2 million in funding, it was announced on Thursday.

Set to launched in August, Yela secured funding from US and UK investors with offices in London, Cairo, and Dubai. Participating from Silicon Valley is Razmig Hoghavian, a board member of Rakuten and General Partner at Graph Ventures.

The application was founded by Alex Eid, who said in a statement: “It’s incredible to see the support that Yela has already received from all sides, investors, celebrity creators, and fans.”

The first round of funding was also led by US investors Justin Mateen, a co-founder of Tinder and the General Partner of JAM Fund, and Sean Rad, a general partner at RAD Fund and also a co-founder of Tinder.

Yela has secured over a hundred A-list celebrities who fans can connect with including Amr Diab, Haifa Wehbe, Youssra, Mohamed Henedy, and Ahmed AlSakka. The interactions on the platform can range from direct text messages to video clips, with prices starting from $100.

 

 


Saudi Arabia to use 4IR to transform energy sector, fight climate change

Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
Updated 29 July 2021

Saudi Arabia to use 4IR to transform energy sector, fight climate change

Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
  • Ministers laud the technology at forum for Fourth Industrial Revolution in Riyadh
  • 4IR is a way of describing the blurring of boundaries between the physical, digital, and biological worlds

DUBAI/RIYADH/JEDDAH: Saudi Arabia is aiming to use Fourth Industrial Revolution (4IR) technology to fundamentally transform the energy sector, enhance the security of its water and food resources, and fight climate change, senior ministers announced.

“Our vision is to transform the energy sector through the application of data and technology,” Saudi Energy Minister Prince Abdul Aziz bin Salman said during the 4IR forum in Riyadh on Thursday.

“Saudi Arabia has a rich resource of youthful innovators who can be entrusted with the task of seeing this transformation through to fulfillment. The synergy between youth and technological innovation will make Saudi Arabia a dynamo for the digital transformation of the energy sector.”

4IR is a fusion of advances in artificial intelligence, robotics, the Internet of Things (IoT), genetic engineering, quantum computing, and more. It is a way of describing the blurring of boundaries between the physical, digital, and biological worlds.

The application of 4IR technology in energy will enable the Kingdom to lead the way in the battle against climate change, the Saudi energy minister said. 

“Perhaps the most important area where technology and energy can combine to the benefit, not just of the Kingdom, but of all mankind, is in the search for cleaner energy,” Prince Abdul Aziz said. “Here, we can use the technology of the 4IR to accelerate the energy transition, and meet the goals for the reduction in greenhouse gas emissions.”

His view was echoed by Ahmed Al-Zahrani, assistant minister for energy, who highlighted the potential of 4IR technologies like IoT and Blockchain. 

“These will help our endeavors to improve efficiency and reduce emissions,” Al Zahrani said.

The Kingdom is known for its energy security as it has been endowed with huge energy resources, but when it comes to food and water security, the country is facing challenges. Adding 4IR applications can address these challenges, Saudi Minister of Environment, Water and Agriculture Abdul Rahman Al-Fadli told the conference. 

Al-Fadli also said 4IR applications such as the use of remote sensors, artificial intelligence, and robotics will help the farming sector in Saudi Arabia as the technologies will provide better data from the fields. He also mentioned that these applications will assist the Kingdom in its plan to plant billions of trees under its green initiative.

“The challenge we all face is to tackle the great issues of the world today, like post-pandemic economic recovery, energy reliability, and sustainability,” Prince Abdul Aziz said.

In other developments from the forum, Ahmed Al-Saadi, senior vice president for technical service at Saudi Aramco, said the oil company had developed its technology for many years, notably in monitoring conditions in oil reservoirs. He said Aramco had made great strides in technology and was among the “best in class” operators in the global energy peer group.

Mohammed Abunayyan, chairman of ACWA Power, the utility developer backed by Saudi Arabia’s Public Investment Fund, told the forum most of its operations were now digital and that essential maintenance was controlled and managed through digital functions.

Abunayyan also said the involvement of the private sector in the digitization of energy was crucial: “The private sector will always deliver better value than the public utility model.”

Jason Bordoff, Dean of the Columbia Climate School in New York, had a warning about the slow progress towards the Paris Agreement goal of reducing CO2 emissions.

“We are not on track to meet those goals,” he said. “We need emissions to decline faster.”

Melissa Lott, research director at Columbia’s energy policy center, said carbon capture, utilization, and storage — a big element in Saudi Arabia’s Circular Carbon Economy framework — was crucial to efforts in reducing emissions.


New center to lead Saudi role in ‘4th industrial revolution’, economic minister says

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says
Updated 30 July 2021

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says
  • The Saudi minister said the new center will contribute to global discussions on the use of 4IR technology, such as 5G and artificial intelligence

DUBAI: The Saudi Centre for the Fourth Industrial Revolution (4IR) will lead the Kingdom’s role in utilizing advanced technologies and their local and global implications, Minister of Economy and Planning Faisal bin Fadel Al-Ibrahim said.

The Saudi minister said the new center will contribute to global discussions on the use of 4IR technology, such as 5G and artificial intelligence, especially amid the COVID-19 pandemic that has introduced new challengers to countries.

“COVID-19 intensified the need for data and evidence-based iterative policymaking supported by technology-driven and innovation-based solutions,” he said at the first Saudi 4IR forum held in Riyadh.

The Kingdom has become a global role model in deploying digital technology at peak of the health crisis, Al-Ibrahim said, enumerating Saudi efforts to manage the pandemic.

The Kingdom is known for its energy security as it has been endowed with huge energy resources, but when it comes to food and water security, the country is facing challenges.
(Shutterstock)

Saudi Arabia ranks 4th in the world in 5G connectivity, he added, and a robust digital infrastructure helped the Kingdom overcome challenges in the education and finance sectors.

Over 850 thousand daily classes were executed for over 6 million students in 2020, and around 2.8 billion digital payment transactions were made.

“This demonstrates Saudi`s leadership in having the most modern digital platform and world class capabilities to design local and global solutions at the technological frontier,” the minister said.

A recent report by the United Nations Conference on Trade and Development said the technology market could reach the value of 3.2 trillion dollars in 2025, increasing by almost 10 times from 2018 figures.

Al-Ibrahim said the Saudi economy could benefit from this by capturing a slice of the industry over the next five years.

The Kingdom is already in a good position, he explained, saying it “has its work cut out for it to move up the Global Innovation Index rankings where we plan to be among the leading pack of our G20 peers.”

“We are passionate about the objectives and vision of the Center, and look forward to working closely with its team in bringing the public and private sectors as well as the science and technology community together,” he added.