FinTech: ‘Payday’ From Revolut Offers Advances Against Earned Wages In The UK
Workers get instant access to wages earned but not yet paid by the employer.
The new Payday product from Revolut allows employees to access upto half their earned wages on payment of a small fee starting at £1.50, thus avoiding access to expensive credit cards or usurious payday lenders. (YourMoney.com)
Payday from Revolut
Workers can see on the app how much they’ve earned throughout the month or after every shift in real-time. Using this feature they can tackle unplanned expenses such as a device or car breakdown by withdrawing earned wages a click on the app.
Workers can activate the product by letting their employer know they want the earned wage access facility. Employers’ wage systems can easily integrate with Revolut’s Payday, free of cost.
Furthermore, Payday will not impact employee credit scores, because it is not a credit or loan system.
Nik Storonsky, CEO and founder of 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.”
Currently, Payday is available only in the UK, but Revolut may later extend it to Europe and the US.
Revolut valued at $33 billion
Revolut last month became the UK’s most valuable tech startup of all time when it raised $800 million in a funding round led by SoftBank’s Vision Fund 2 and Tiger Global Management.
The funding came in at a valuation of $33 billion, about six times Revolut’s valuation in a previous round in 2020, and nearly the same as that of NatWest Group (LON: NWG), one of the UK’s four biggest banks.
Revolut announced last month Stays, a travel booking facility in its app.
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