Siam Commercial Bank (SCB) is committed to developing innovative financial services and tools to help local business clients weather the COVID-19 crisis. To further that goal, and operating under a philosophy of "big players helping smaller ones", SCB recently teamed up with Digital Ventures to offer a new PayZave settlement platform. Breaking through credit term limitations for the first time in Thailand, PayZave sets a new settlement standard between business partners by featuring real-time payments without credit terms.
It encourages buyers to use their financial potential to reduce roadblocks imposed by suppliers' limited access to funds. The platform transforms 'buy now, pay later' into "pay first and save more," with deals offering discounts for instant payments. Buyers can save on costs, while sellers enjoy better liquidity so they can avoid being forced to seek loans from loan sharks. The platform offers a win-win solution, allowing all business partners to maintain liquidity. To help domestic SMEs (both small and medium-sized) weather this crisis, the platform is free for all business partners in Thailand throughout this year
SCB Executive Vice President and Head of the GTS and Ecosystems Function Mr. Thanawatn Kittisuwan said that SCB always tries to understand clients' pain points in order to fully support them, and realized that the COVID-19 pandemic was having an adverse impact on domestic business operators. For SCB corporate clients, major impacts are the result of a chain reaction from a liquidity shortage among their small enterprise business partners in the supply chain. These issues have resulted in small players' inability to produce and deliver goods as per agreements. A root cause of this issue are credit term requirements - payments are usually made over a period ranging from 45-60 days, resulting in a liquidity shortage among SMEs. To address this issue, SCB and Digital Ventures joined hands to leverage their shared technology strength to work under the concept of "big players helping smaller ones" and come up with a digital settlement platform called PayZave. For the first time in Thailand, this digital settlement platform lets business partners make and receive payments instantly without waiting for credit terms. Both parties agree on discount deals in exchange for payment before credit terms are established. SCB will provide buyers with financial support so they can make payments faster and obtain goods at lower cost, while sellers can obtain payments instantly without seeking loans from other sources. The PayZave platform offers a win-win liquidity management solution to both parties. Business partners in Thailand can instantly use the PayZave platform, a supportive tool for all local SMEs, to move forward and weather this crisis together.
Digital Ventures Chief Executive Officer Mr. Orapong Thien-Ngern said that there is admittedly considerable inequality in the banking and finance industry in terms of small business operators' inability to access funding. Their qualifications may fail to meet the loan approval requirements of financial institutions. Especially during the COVID-19 pandemic, a large number of business operators have resorted to finding a way out this problem by means of loans from loan sharks at extortionate interest rates. This issue is among Thailand's most critical economic problems. The PayZave platform has been developed out of the need to support the supply chain during the COVID-19 pandemic by bridging the gap so that small suppliers can access funding sources that benefit both parties. We are trying to change "buy now pay later" to "pay first and save more," where buyers and sellers can directly enter into payment agreements without being restricted by credit terms of 45-60 days. Without credit terms, both parties no longer need to rely on middlemen or financial institutions, saving costs for both parties. Buyers get discounts, while sellers receive money instantly. The PayZave platform offers a quick and time-saving process, with 24-hour online transaction availability and an advanced real-time reconciliation system. This is an effective liquidity management solution answering the business requirements of parties in supply chain networks. We would like to welcome big players to help smaller ones weather the crisis together and hope to see 80,000 users in 2021.
T.T.S. Engineering (2004) Managing Director Mr. Suparp Jarrunpattana said that the company has been in the construction industry for over 30 years. The COVID-19 pandemic is the most severe and challenging crisis ever, particularly for the construction industry, where supply chain issues can have a considerable impact on the progress of construction projects. Amid the severe liquidity shortage during the pandemic, the company was thinking about how to help alleviate this liquidity problem among suppliers and discussed the issue with SCB and Digital Ventures. T.T.S. discovered that the PayZave platform is the solution to their requirements in this situation. Sub-contractors can enjoy instant access to funds upon complete delivery of assignments. The PayZave platform is mobile user-friendly with 24-hour online availability, reducing business obstacles and benefiting every business partner. Currently, some 1,500 of our suppliers use the PayZave platform.
Villa Market JP Chief Operating Officer Mr. Varich Phusanakhom said that Villa Market places importance on adopting technology for continuous business process improvement and has collaborated with SCB and Digital Ventures on several projects. Upon learning about PayZave platform development, the company was glad to join the platform, which provides an alternative that truly understands supply chain pain points. Villa Market has worked closely with over 1,000 suppliers in the consumer product supply chain, so the company understands that liquidity helps businesses move forward and wishes to help all its business partners with continuous liquidity. Villa Market is proud of taking part in supporting our business partners in weathering this crisis together.
The PayZave platform welcomes all business partners and suppliers in Thailand, even if they are not SCB clients. To help ease burdens during the COVID-19 crisis, no fee will be charged for joining the platform until December 31, 2021. SCB clients interested in joining the PayZave platform can directly contact their Relationship Manager. For others, more information is available at www.payzave.com, or send an inquiry by e-mail to firstname.lastname@example.org