Revolut introduces payday advance feature in UK – TechCrunch
Fintech start-up Revolut is launching a new feature called Payday. It is a replacement for short-term credit card debt and credit because it allows you to free up part of your paycheck faster. If the company decides to integrate with Revolut, users will be able to access features directly from the Financial SuperAppli.
Currently, this feature is limited to UK-based businesses, but the company plans to launch it in the European Economic Area and the US as well. It’s the secret: not everyone who receives a salary with a Revolut account via direct deposits has access to Payday.
Revolut must first log into the employer’s payroll system to find out how many employees the company is making at any given time. FinTech startups say employers don’t need to change their payroll system.
Once done, the employee can release part of the earned salary at any time. Users can withdraw up to 50% of the pre-won amount. This feature is free for businesses, but Revolut charges users a small flat rate.
In a statement, Revolut co-founder and CEO Nik Storonsky said, “We believe in the importance of providing access to financial well-being for all, which includes financial stability. It also includes the focus on impact on employee mental health. ”“ After the hardships of last year, the last thing employees need now is financial uncertainty and stress. It is possible for many to break out of their addiction to payday loans and high short term credit. Important. This situation is exacerbated by the monthly payment cycle. “
People who live on pay to pay can take advantage of pay days for unforeseen expenses. For example, if you need to fix your car and can’t wait until the end of the month, you can unlock your money right away.
It is not debt and does not affect your credit score. It is part of the salary. In other words, less money will be paid at the end of the month.
Even if you don’t use the payroll prepayment feature, Payday lets you see how much you’ve earned so far this month. It is interesting to see if many companies are adopting this feature. With millions of users in the UK, businesses can learn more about Payday from their employees.
Revolut Introduces Payday Advance Feature in UK – TechCrunch Source Link Revolut Introduces Payday Advance Feature in UK – TechCrunch