On Pandemic Impact: Payfazz Confirms Business Efficiency

Companies are starting to adapt as the pandemic continues. It applies to the Payfazz fintech startup. This startup reduces expenses both from the number of employees, IT costs, and others in order to continue operation and be more profitable.

In an official statement, Payfazz CEO, Hendra Kwik said the company was not spared of the downturn impact in the world economy, which eventually demanded companies to adapt, including efficiency. The company has performed some strategies following the current condition, but he said it is not enough to maintain the company's performance to remain sustainable.

Therefore, companies decided to allocate funds and resources in a sustainable sector, and relate to the company's vision that focuses on small business, financial services, and digital banking.

"This has been a very difficult senior management decision during Payfazz' operation since 2016. This tough decision must be taken to be able to maintain the sustainability of the company in the future," he said, Thursday (6/18).

DailySocial team asked Hendra further on a separate occasion, he then explained that the increase in company's revenue achieved by optimizing sales by adjusting service prices and service costs, as well as operational cost-efficiency.

"As a result, the company's gross profit shows positive numbers and continues to rise as time goes by," he said.

Regarding the 10% layoff, Hendra said that the company decided to restructure and refocus, therefore, layoff is quite necessary for the company can remain a sustainable business. Before making some efficiency, Payfazz employees have reached 600 people.

However, he did not specify which part of the team was affected by efficiency. He said the layoff is targeted for non-core businesses and businesses with a lot of physical contact with users, it makes it impossible to maintain physical distance.

"We do our best to continue to support our employees affected by the reduction by providing their rights in accordance with the current government regulations."

In terms of benefit, a full salary for June 2020; severance package, award package according to tenure, leave entitlement package, and health insurance until October 2020. In addition, the company provides assistance for career services for affected employees.

Hendra hopes that this is going to be the last pandemic-effect tough decision. He did not want this to happen in the future. Currently, the company focused on increasing revenue, therefore, the company's profit remains stable even in the midst of a crisis. The company is expected to continue in the long run.

"In the future, Payfazz will improve the company's governance and continue to run sustainably," he concluded.

In its journey, Payfazz has made various business expansions to form a business group called Fazz Financial. Under this group, there are Post, Sellfazz POS, Fazzcard, Billfazz, and Canfazz. All of these products target a variety of consumer segments.

One of them is Fazzcard, which is an application for filing credit to finance daily needs, pulses, data packages, basic needs, petrol, without having to have a bank account. In addition, consumers get cashback while shopping at Fazzcard e-commerce partners.

–Original article is in Indonesian, translated by Kristin Siagian