UK FinTech firm Revolut is set to launch Payday, an earned wage access platform that will enable employees to track and have instant access to the money they have earned.
The platform will provide workers access to the money they have earned but have not yet been paid for through a traditional salary system.
Revolut claims Payday will not impact the credit scores of employees due to it not being a credit or loan system. The company believes the system – which will come with a small fee – will enable workers to secure more control and flexibility in their finances and avoid accumulating debt between pay checks.
Payday will be cost-free for employers and will be easy to integrate into payroll systems, Revolut said. In addition, cashflow will not be affected by the move to the platform as employers will continue to pay employees’ salaries at the end of the month.
Revolut is partnering with UK employers on the launch with plans for collaboration in the EEA and the US to follow.
Revolut founder and CEO Nik Storonsky said, “We believe in the importance of making financial wellbeing accessible to all, and this includes focusing on the impact of financial stability on employees’ mental health.
“After the difficulties of the past year, the last thing employees need now is financial uncertainty and stress. It is important to move away from a situation where many are dependent on payday loans and expensive short-term credit, a reliance that is exacerbated by the monthly pay cycle.”
Revolut has widened its market presence after it rolled out Stays – a booking service for the travel industry that will enable users to book hotels through its app.
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