Revolut launches Payday, a platform to give access to earned wages immediately
Revolut, one of the major fintech platforms in Europe that seeks to deal with all things related to money, has announced the launch of a new platform called Payday which will give its users, access to the wages that they have earned until then, in a month.
This platform would give wage earners access to the wages that they have earned and they would not need to wait till the end of the month to get their wages. This would especially be useful to generate liquidity for the wage earners who work on monthly wages and with this platform, they would be able to track how much they have earned daily and those funds would then be available to them for use at any day during the month.
The beauty of this platform would be the fact that this would not be considered as a loan and would give the users more flexibility in managing their finances and the users would not need to seek any debts between the monthly paychecks. The platform will have a small, flat fee which the users would have to pay and the company would work directly with the employers to make sure that these funds are available to their employees at any point of time in a month. This would not affect the liquidity of the employers as they would continue to pay their wages only at the end of the month and thus this would be a win-win situation for all.
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.“
Revolut has been expanding across a variety of financial services over the last few months and it has also been looking to raise funds to fund its expansion across regions and different financial services as well. As for the Payday platform, there definitely seems to be a specific use case for what it is looking to achieve and the ‘small fee that it chooses to charge could make or break this platform.