NextPay, the Philippines' first neobank for businesses, has raised $1.6 million in seed funding to enhance its digital financial services aimed at micro, small, and medium enterprises.

Information on the Target

NextPay, co-founded by Don Pansacola and Aldrich Tan, is the first neobank geared towards businesses in the Philippines. Established in 2020, NextPay offers comprehensive digital banking solutions that cater primarily to micro, small, and medium enterprises (MSMEs), enabling them to access essential financial services that are often difficult to obtain through traditional banking methods. The platform features capabilities such as digital invoicing, cash management, and batch payments to banks or e-wallets, providing underserved business customers with a user-friendly and cost-effective alternative.

Since its inception, NextPay has managed to process over $20 million in digital transactions for a client base of more than 100 businesses, employing around 3,500 individuals. The company operates on a pay-per-use model, ensuring that its fees remain competitive and significantly lower than conventional banking rates. As the digital banking sector evolves, NextPay aims to enhance its suite of financial tools and services to better meet the needs of the growing entrepreneurial landscape in the Philippines.

Industry Overview in the Philippines

The fintech landscape in the Philippines is still in its infancy, despite the country having wide access to the internet. The demand for digital financial services has been steadily increasing, yet the actual offerings remain limited, causing