Revolut announced the launch of Payday, its new earned wage access product that gives employees the power to instantly access a portion of their salary as they earn it. Payday is easy to use, cost-free for employers and gives employees more control and flexibility over their finances.
As part of the initial launch, Revolut is partnering with UK employers to let employees withdraw a percentage of their income in the month for a small, flat fee. Revolut’s platform and app will plug into an employer's payroll system, allowing employees to draw down part of their wages earlier in the month.
Customers will be able to view their available accrued earnings and select the amount that they want to withdraw directly into their main account, helping employees to access their salaries earlier in the month to cover expenses or necessary costs and avoid getting into debt.
Payday has no impact on an employee’s credit score and provides them with a lower cost alternative to credit cards or payday loans that they might otherwise rely on to help with any cash flow problems.
Benefits to businesses/employers:
- increase employee satisfaction
- improve employee financial wellbeing and financial resilience
- decrease employee turnover
- more attractive to prospective employees
- cashflow is unaffected by the move as employers will continue to pay staff 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 can be exacerbated by the monthly pay cycle..“