Revolut is launching a new earned wage access platform today called Payday. The platform will give employees track and have instant access the money they have already earned, but have not yet been paid for through a traditional salary system.
As part of this launch, Revolut is partnering with UK employers with plans for EEA and the US to follow. The company states that use of the platform will come with a “small, flat fee”.
Payday will not impact employee credit scores, because it is not a credit or loan system. The fintech argues the system will allow employees more control and flexibility in their finances, and avoid accruing debt between pay checks.
According to Revolut, Payday is cost-free for employers and simple to integrate into payroll systems. The company states that cashflow isn’t 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, states: “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.“