A new wage app designed to serve modern workforces has launched following high-profile investment in its first round of fundraising.
Backed by both ShopWorks and investors including Sir Terry Leahy and Bill Currie, fastPAYE offers businesses a service where they can pay staff part of their already earned salary in advance of payday.
Currently, 78% of employees in the UK are living payday to payday and cannot cover unexpected costs when they arise. In 2018 more than 10 million short-term payday loans were taken. With the ‘wage-on-demand’ marketplace growing at pace and current wage payment structures unreflective of modern life, fastPAYE is speeding-up access to earned money through its flexible wage app.
Unlike other lending models, the fastPAYE proposition isn’t a loan, therefore charges no interest. Earned salary is drawn down for a small transaction fee but, crucially, the service is free to those who earn the minimum wage.
Having secured investment, and working with Starling Bank as its payment partner, the business is looking for growth in Hospitality, Leisure, Retail and Service sectors.
Via its parent ShopWorks, a workforce management business with more than 150,000 users, the fastPAYE team has heritage and proven expertise in creating technologies for employers and employees.
Lee Bowden, Chief Commercial Officer at fastPAYE, said:
“Via our fastPAYE app we are allowing employers to give employees access to their money when they need it in a way that is controlled and transparent. 10 million pay-day loans were taken out in 2018, with half being used cover unexpected living expenses. By offering instant access to earned wages employees longer need to rely on these costly short-term loan agreements.
“Through our sister business ShopWorks, we know the pressures facing employers and employees alike. fastPAYE has been designed to address the vast numbers of workers who live payday-to-payday, as well as their employers who battle employee retention and expectation on a daily basis.
“With a strong and growing core business, we are delighted that Sir Terry Leahy and Bill Currie have recognised the impact this technology can have for both employers and employees.
“This funding will be enough to make a major impact in the growing wage on demand marketplace, as well as increasing product development for our existing workforce management business.”
The company has not disclosed the size of the fundraising.