8.6 C
New York
Sunday, January 16, 2022
Home Challanger banks Revolut launched Payday - early wage access platform

Revolut launched Payday – early wage access platform

Digital bank Revolut launches a new feature called Payday to let some customers access 50% of their salary a day earlier.

Revolut stated that use of the platform will come with a “small, flat fee”.

Read also: Starling’s business banking tops ratings for quality

For about £1.50, eligible users will be able to access part of their earned salary.

This new feature does not have to concern the employers, as it does not cost them anything.

However, so far it is only available to customers across the UK, with the EEA and US will be following shortly after.

Revolut also stated that cash flow will not be affected by the move to the platform “as employers will continue to pay employees salaries at the end of each month”.

Nik Storonsky, founder and CEO at 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.“

James Andrews, senior personal finance editor at Money.co.uk, said: “Someone budgeting responsibly who already has a savings buffer to cover unexpected bills will see very little benefit from this, which means it’s only helpful to people who are already close to the edge financially.”

“The danger is that people with poor planning will use it at the wrong time, or see it as an excuse not to have to budget or think things through – meaning when bills do come in their debts will rise immediately and they will be charged more overall as they are paying interest for longer.”

After Softbank lead an $800 million investment into Revolut, the companys’ valuation climbed to $33 billion.

Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Revolut is launching as a bank in 10 more European countries

This means the London-based digital bank is now offering deposit protection of up to € 100,000 to local customers in the particular markets.

Starling has stopped advertising on Facebook and Instagram

The CEO Anne Boden says the company won’t advertise on Facebook or Instagram ‘alongside scammers who are going after the savings of our customers.

Commodities trading now enabled by Revolut for Singapore users

The Monetary Authority of Singapore (MAS) has given permission to Revolut to allow customers to trade gold and silver on its platform.

Tencent takes stake in Monzo Bank

The tech giant from China Tencent has taken a minor stake in Monzo Bank after joining Monzo's latest funding round.