Revolut launches the payday access platform Payday
Revolut is launching today a new platform for accessing earned wages called Payday. The platform will give employees instant tracking and access to money they have already earned but have not yet been paid through a traditional salary system.
As part of this launch, Revolut is partnering with UK employers with plans for the EEA and US to follow. The company states that there will be a “minimal flat fee” for using the platform.
Payday will not impact employee credit scores because it is not a credit or loan scheme. FinTech says the system will allow employees more control and flexibility over their finances, and will avoid accumulating debt between paychecks.
According to Revolut, Payday is free for employers and easy to integrate into payroll systems. The company says cash flow is not affected by the move to the platform, as employers will continue to pay employee salaries at the end of each month.
Nik Storonsky, Founder and CEO of Revolut, said, “We believe in the importance of making financial wellness accessible to everyone, and that includes focusing on the impact of financial stability on the mental health of employees. After the hardships of the past year, the last thing employees need now is financial uncertainty and stress. It’s important to move away from a situation where many rely on expensive short-term payday loans and credit, a dependency that is exacerbated by the monthly payroll cycle. ”