Fintech startup Revolut Is launching a new feature called Payday.. It’s a replacement for credit card debt and short-term credit because it allows you to release some of your wages faster. If the company decides to integrate with Revolut, users will be able to access the features directly from the Financial SuperAppli.
Currently, this feature is limited to UK-based companies, but the company plans to launch it in the European Economic Area and the United States as well. That’s the secret — not everyone who receives a salary with a Revolut account through direct deposits has access to Payday.
Revolut first needs to connect to the employer’s payroll system to know how many employees the company is making at any given time. FinTech start-ups say employers don’t need to change their payroll system.
Once this is done, the employee can unlock some of the salary earned at any time. Users can withdraw up to 50% of the pre-earned 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 focusing on the impact on employee mental health. ” “After last year’s difficulties, the last thing employees need now is financial uncertainty and stress. It’s possible for many to get out of their reliance on payday loans and high short-term credit. Important. This situation is exacerbated by the monthly payment cycle. “
People who live from pay to pay can take advantage of paydays for unplanned expenses. For example, if you need to repair your car and can’t wait until the end of the month, you can unlock your money right away.
This is not a debt and does not affect your credit score. This is part of the salary. In other words, less money will be paid at the end of the month.
Even if you’re not using the payroll prepayment feature, Payday allows you to see how much you’ve earned so far this month. It’s interesting to see if many companies are adopting this feature. With millions of users in the UK, companies can learn about Payday from their employees.
Revolut introduces salary advance feature in the UK – TechCrunch Source link Revolut introduces salary advance feature in the UK – TechCrunch