Earlytrade, the Australia based fintech firm specializing in early payments platform has launched new products to retain competitive edge during the covid-19 induced economic distress. This product launch is also expected to support small businesses and help boost entire supply chain process. Over the course of last 30 days, the fast spread of covid-19 and its impact on global financial market has greatly affected and reshaped the global economic growth and outlook. On 11.03.2020, World Health Organization (WHO) declared covid-19 outbreak as pandemic. In next 24 hours following the announcement, Earlytrade registered its biggest spike in payments request since it was founded as small and medium sized businesses located in Australia raised early payment request worth nearly $51.4 million. The spike was a 650% increase in its average daily trading volume.
In the week which followed WHO’s declaration of covid-19 outbreak as a Pandemic, the firm’s marketplace registered early payments request worth nearly $250 Million. Having seen such a huge spike in payment request and unusually highly demand for ethical working capital solution, Earlytrade decided to respond with launch of new product solutions that target its clients impacted by covid-19 while also providing the existing functions of its core product package. The newly launched products take advantage of situational demand requirements and are deigned to primarily support small businesses while helping them stimulate their economy and boost the linked supply chain. The products are designed to fit in two types of response measures – Offerings early payments to small businesses for free and support small/local/indigenous businesses.
The first offer caters to huge demand for early payments to small businesses as Earlytrade has determined that it is necessary for such firms in order to help them survive and sustain themselves in this tough market conditions. To this end, in their bid to scale up the process, the firm is in dialogue with policymakers and government agencies to help release billion of dollars in cash flow into Australian economy and making this payment reach smaller businesses first free of charge in order to give the segment maximum benefits from the move.
The second response is in line with ASBFEO review’s 1st draft of recommendation for supply Chain finance. However, the review committee failed to develop concrete measures for defining and identifying the firms which can be categorized into small/local/indigenous businesses. To this end, the fintech firm launches its “Earlytrade Verify” service which it claims will help disrupt the payment arrangements for firms which come under these three segments in Australian market in the coming weeks.
Commenting on this move, Piers Symons – CTO and Co- Founder of Earlytrade said, “We have ambitious plans for 2020. Although it is impossible to predict the ultimate cost of the pandemic, we are viewing COVID-19 as an opportunity to innovate and disrupt traditional payment practices around the world using technology”.