![[Global] Revolut launches early wage access platform Payday](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Mature-man-with-spectacles-and-277946896_1200x.jpg?v=1724303571)
Digital bank Revolut has launched Payday, a new feature that will allow some customers access to 50% of their salary a day early, Fintech Finance News reports.
Revolut said a “small, flat fee” will be charged for using the platform.
For around £1.50, eligible users will reportedly be able to access part of their earned salary. The new feature will not incur a cost for employers.
Currently, the feature is only available to customers across the UK but the EEA and US will reportedly be following soon.
Revolut stated that cash flow will not be affected by the move to the platform “as employers will continue to pay employees salaries at the end of each month”.
Nik Storonsky - founder and CEO at Revolut - 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.“
James Andrews - senior personal finance editor at Money.co.uk - said, “Someone budgeting responsibly who already has a savings buffer to cover unexpected bills will see very little benefit from this, which means it’s only helpful to people who are already close to the edge financially.”
“The danger is that people with poor planning will use it at the wrong time, or see it as an excuse not to have to budget or think things through – meaning when bills do come in their debts will rise immediately and they will be charged more overall as they are paying interest for longer.”
Source: Fintech Finance News
(Quotes via original reporting)
Digital bank Revolut has launched Payday, a new feature that will allow some customers access to 50% of their salary a day early, Fintech Finance News reports.
Revolut said a “small, flat fee” will be charged for using the platform.
For around £1.50, eligible users will reportedly be able to access part of their earned salary. The new feature will not incur a cost for employers.
Currently, the feature is only available to customers across the UK but the EEA and US will reportedly be following soon.
Revolut stated that cash flow will not be affected by the move to the platform “as employers will continue to pay employees salaries at the end of each month”.
Nik Storonsky - founder and CEO at Revolut - 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.“
James Andrews - senior personal finance editor at Money.co.uk - said, “Someone budgeting responsibly who already has a savings buffer to cover unexpected bills will see very little benefit from this, which means it’s only helpful to people who are already close to the edge financially.”
“The danger is that people with poor planning will use it at the wrong time, or see it as an excuse not to have to budget or think things through – meaning when bills do come in their debts will rise immediately and they will be charged more overall as they are paying interest for longer.”
Source: Fintech Finance News
(Quotes via original reporting)