Financial app Revolut has launched Payday, an “earned wage access product” that will allow employees to instantly access their earned wages at any time in the month, with the aim to alleviate financial stress and steer consumers away from payday loans.
As part of the initial launch, Revolut has partnered with UK employers to let employees withdraw a percentage of their income in the month for a small flat fee.
Revolut said that by plugging its platform and app into a company’s payroll system, employees can draw down part of their wages earlier in the month.
It confirmed that cashflow is not affected because employers will continue to pay employees their salaries at the end of each month and also said that Payday will have no impact on an individual’s credit score.
While Payday will initially be available to businesses in the UK and their employees, Revolut intends to roll out the new feature across the EEA and US in the coming months.
Nik Storonsky, founder and CEO 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.”
Earlier in August, the Schroder UK Public Private Trust announced it had invested nearly £14 million in Revolut.
