Revolut, a fintech startup is now offering Payday. Payday is an option to short-term credit and credit cards. It allows you to unlock some of your wages early. Users can access Revolut directly from their financial app if a company decides to incorporate with Revolut.
The feature currently only applies to UK-based businesses, however, the company intends to make it available in other countries, including the European Economic Area (EEA) and the United States. This is the key — Payday won’t be offered to all employees who have their salaries in Revolut via direct deposit.
Revolut must first connect to an employer’s payroll so the company can see how much their employees earn at any given time. However, the fintech startup claims that employers do not have to modify their payroll systems.
Employees can then withdraw a percentage of the earned wages whenever they wish. You can take up to half of the money you’ve earned upfront. Revolut charges a flat fee for users, even though the service is completely free to businesses.
Nik Storonsky, cofounder of Revolut and CEO of the company said that they believe it is important to make financial well-being accessible for all. After the recent difficulties, employees don’t need financial stress or uncertainty. You must get out of a financial reliance on short-term loans or payday loans, which is often exacerbated with the monthly pay cycle.
For unexpected expenses, people who are living paycheck to paycheck can use Payday. Payday can be used to help you fix your car right away, even if it is not possible to wait for the end of the month.
It’s not debt, and it won’t impact your credit score.
Payday allows you to see the amount you have earned this month, even if you don’t use the salary advance feature. The feature will be very interesting to watch whether many companies embrace it. There are millions of Payday users in Britain, so businesses will likely learn more about the feature from their employees.
Publiated at Thu, 19 August 2021 17:56.22 +0000