The billionaire founders of Amazon and Microsoft, Bill Gates and Jeff Bezos, are backing a British financial technology start-up that lets workers draw down their salaries early.
Wagestream, which says it aims to end the 'payday poverty cycle', has raised £4.5 million (US$5.04 million) in total from backers.
The company has a mobile app that lets employees of participating companies draw money from their monthly pay packets early for a flat fee of £1.75 (US$1.96). Wagestream then deducts the sum from their salaries on payday.
The company has launched a pilot programme with 25 companies employing 20,000 people using its platform. They include hotel firm Travelodge and gym chain David Lloyd.
"By giving workers access to their earnings, they can stop making financially distressing decisions such as taking out a payday loan," said Wagestream founder Peter Briffett. "There is an instant link between work and reward."
However, according to The Times, the company may still face questions over the wisdom of allowing workers easy access to their earnings in advance. It is the first such provider to be accredited by the Financial Conduct Authority.
Source: The Times
The billionaire founders of Amazon and Microsoft, Bill Gates and Jeff Bezos, are backing a British financial technology start-up that lets workers draw down their salaries early.
Wagestream, which says it aims to end the 'payday poverty cycle', has raised £4.5 million (US$5.04 million) in total from backers.
The company has a mobile app that lets employees of participating companies draw money from their monthly pay packets early for a flat fee of £1.75 (US$1.96). Wagestream then deducts the sum from their salaries on payday.
The company has launched a pilot programme with 25 companies employing 20,000 people using its platform. They include hotel firm Travelodge and gym chain David Lloyd.
"By giving workers access to their earnings, they can stop making financially distressing decisions such as taking out a payday loan," said Wagestream founder Peter Briffett. "There is an instant link between work and reward."
However, according to The Times, the company may still face questions over the wisdom of allowing workers easy access to their earnings in advance. It is the first such provider to be accredited by the Financial Conduct Authority.
Source: The Times
