LOCAL financial technology (fintech) firm NextPay announced on Thursday that it recorded P3.2 billion in transactions in 2022, driven by the growth and digital transformation of small and medium enterprises (SMEs) all over the country.

“We take great pride in achieving this significant milestone, which not only showcases NextPay’s remarkable success but also underscores the success of SMEs in the Philippines,” Don Pansacola, co-founder and chief executive officer of NextPay, said in an e-mailed statement.

“Our growth momentum has not only solidified our position in the market but has paved the way for a promising Series A funding round in the second half of 2023, indicating a bright future ahead for NextPay,” he said.

The homegrown fintech startup was launched in 2020. Since then, it has served 3,800 growing businesses with more than 32,000 employees and recorded over 10,000 suppliers.

NextPay offers digital financial services to entrepreneurs in various industries, helping them grow their SMEs by automating end-to-end processes of financial operations.

The P3.2-billion milestone marks a record-high increase of over 200% in user transactions in 2022 versus the previous year, the firm said.

It is now seeking more partners to further its mission of providing accessible and innovative financing services to underserved markets.

NextPay’s Cofounder and Chief Experience Officer Aldrich Tan said that there is still room to grow for the company.

“The past years have given us the opportunity to provide basic financial services to more Filipinos. This year we aim to push the boundaries of the services we provide for SME owners,” he said.

In early 2023, the company launched a referral program product feature, allowing customers to earn points and reduce transaction fees. The platform also adjusted its payout period from once a week to thrice a week, making processes much easier and better for merchants.

Upcoming services include virtual debit cards for employee reimbursements and corporate online subscriptions, lending and advances with easy accessibility for qualified users, and premium subscription tiers to unlock access to special advanced features.

NextPay raised $1.9 million in funding in 2021. This includes the pre-seed backing of Silicon Valley-based startup accelerator Y Combinator.

The seed funding round was led by Singapore-based Golden Gate Ventures and Sy-led Gentree Fund. — Brontë H. Lacsamana