PayAid

PayAid is introducing an innovative, lower-cost financing solution to New Zealand. PayAid provides Kiwis with early access to a portion of their salary (pay advance) right from their phones. All this at a fixed fee of 5% per advance and no other hidden or late fees. When you get $100 from us you only repay $105 - nothing more.

Our straightforward process takes only a few minutes to complete and is paperless. Once the user has finished the sign-up process on the app - which takes about five minutes - we will calculate the user's advance limit and pay the chosen amount to their bank account.

PayAid is also a budgeting app that helps customers effectively manage expenses by understanding where their money is spent. A customer can allocate their budget to different expense categories and our algorithm will automatically update their budget as they spend. Our app will send them a notification when they are about to exceed their budget, allowing our customers to make better financial decisions.

PayAid is planning to offer its consumers a better way to manage their finances by providing an alternative version of consumer credit that breaks away from traditional financial practices. PayAid is designed to provide its customers with pay advance services that allow them to get immediate access to a portion of their upcoming salary without having to rely on credit cards or other forms of debt.

PayAid is primarily designed to support people who live from paycheck to paycheck or need some extra cash. We are committed to designing a business model that is easy to use and has a fair approach to finance.

PayAid plans to generate its revenue through customer fees. PayAid will provide its customers with access to a portion of their pay in advance (Pay Advance Service) for a fixed 5% transaction fee on the total advance. There will be no interest, no late fees, and no hidden charges. We estimate that $200-250 will be the average cash out amount.

The ID process only takes place at the registration. The returning customers do not have to prove their identity again, meaning they can cash out faster. However, if a user has been inactive for more than 30 days, they will need to reconnect their bank account.

Once the App is publicly available, the users wishing to use our service will have to meet eligibility criteria. The user must:

Be a New Zealand citizen or resident or hold a valid work visa

Have work income in their bank account of at least $450 per week

Have a New Zealand Drivers Licence or Passport

Be over 18 years of age

PayAid service has a broad use case. Customers can use their advance for any purpose as the funds are deposited directly into their bank accounts. 

Unlike Buy Now Pay Later services, which tie the customer’s funds to specific purchases, PayAid gives the customer freedom to use their funds however they see fit, whether it is for rent, holiday shopping or utility bills.

According to our preliminary market research, in which we interviewed 20 potential customers, the most appealing attributes of our service are highlighted below:

Ease-of-use and speed: users register on their mobiles and get approved in seconds. 

Innovativeness: the budgeting tool is an attractive bonus point

Affordability: 5% transaction fee is manageable 

Flexibility: users can spend money on whatever they need 

PayAid has created a solution by combining our proprietary technology and several APIs from our providers, seeking to simplify and improve Kiwis’ access to credit.

Our easy and seamless sign-up process is the key attribute helping us appeal to a wide demographic. PayAid is designed to be as automated as possible to reduce the time and hassle of retrieving credit.

Even before COVID-19, we observed that people in New Zealand were struggling to get affordable credit. Unfortunately, the pandemic didn’t make the situation any better.

One article from Finder captured our attention, stating that one out of three Kiwis is living paycheque to paycheque. Surprisingly, an initial search showed no current credit providers in New Zealand offering affordable and accessible solutions.

The idea of bringing a straightforward, flat-rate pay advance service to New Zealand was born. We then started developing a business model, and in June 2021, we established PayAid Ltd.

Since then, we have self-funded and received private investment for research, development, branding, office rental and legal fees.

Market Size

After comparing the target market profile to our criteria for customer eligibility, we calculate the total number of potential customers to be 511,000. Early adopters must be likely to try new technology and have a stable income from a job. Those with personal income between $20,000 - $70,000 are most likely to use our service.

Those who earn less might not be eligible, while those who make more might not require our service. Additionally, those who live in more populated areas are more likely to learn of our service due to the marketing exposure.

We use data from similar services in Australia to determine our penetration rate.

As of November 2021, 8% of Australians, specifically 22% of Gen Z and 11% of Millennials, have used pay-on-demand services at least once.

Considering that pay-on-demand was introduced in Australia around 2019 & that PayAid will have the first-mover advantage, we estimate the penetration rate for PayAid in the first year to be 4% - 6% of the target market.

Thus, our expected market volume in the first year is approximately 20,000 - 30,000 active users.

Advisors

When you build a product for the people, it only makes sense that it's the people that get an opportunity to invest and be a part of the success.

We genuinely believe that PayAid is a service that will help the people of New Zealand. No one should ever feel stuck when they need money, not when they have a job and work hard.

So as we raise our funding round, we want to do so with a public crowdfunding campaign instead of private investment money. Unlike traditional investing, public crowdfunding means that anyone can be involved, rather than only a few wealthy individuals.

We're raising a minimum of $200,000 and a maximum of $2,000,000 and eligible investors can get involved for as little as $500.

KEY OFFER DETAILS

We are offering up to 2,000,000 shares at $1.00 each. The minimum total amount required to be raised under this offer is $200,000 (200,000 shares).

Shares issued through this crowdfunding will be non-voting ordinary shares, ranking equally with all other existing non-voting ordinary shares and carrying the rights listed below. Our nominee company, PayAid Nominee Shareholding Limited, will hold legal title to these shares on trust for investors under this offer.

We have raised $210,000 from early investors and our advisors at $10,000,000 valuation earlier in 2022. Since then we have completed the app development and started live testing of the App. Our pre-money valuation of $20,420,000 has been created with the help of our advisors and the Equidam valuation platform. It is based on Scorecard, and Venture Capital valuation methods. The average of both methods has been used as pre-money valuation.

If we only raise the minimum in this round, that will allow us to launch the app and operate for at least 3 months. We’ll do most of the work in-house with help from our contractors. In this case, we will be raising more capital once the app is live to get the necessary lending capital.

If the maximum is raised, we’ll be able to do a full scale launch of the app as projected. In this scenario, we'll have a higher advertising & operational budget that will allow us to attract a higher number of users and operate according to our projections.

RETURNS

There are currently no dividends paid to shareholders, but once we hit profitability the Board will review this. Over the next few years, we plan to invest heavily in growth.

If shareholders do want to buy or sell shares, they can register interest with us, and we can manage the buying and selling of shares. We cannot guarantee that there will be buyers or sellers available.

This document has been prepared by PayAid Limited. The purpose of this document is for information in relation to the PayAid Limited share offer on PledgeMe. All efforts have been made to ensure the accuracy and reliability of the content as of the date of this document. PledgeMe is licensed and regulated by the Financial Markets Authority, and the share offer made by PayAid Limited will only be available for acceptance through the PledgeMe website.

Equity crowdfunding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative
and carries high risks. You may lose your entire investment and must be in a position to bear this risk without undue hardship. 

New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.