London-based fintech Revolut is introducing a new payday feature in the UK
London-based fintech Revolut has announced the launch of Payday, a new feature that allows users to unlock part of their salary early. This is an alternative to credit card debt and short term credit. When a company integrates with Revolut, its users can access the payday function directly through the app.
Currently, the Revolut Payday feature is limited to UK based companies. The fintech intends to introduce this function for companies in the USA and the European Economic Area as well. However, Payday will not be available to everyone who receives their salary in their Revolut account via direct deposit.
Revolut payday function
The fintech has to latch onto the employer’s salary system in order to know how much employees earn. It is also advised that employees do not need to change their payroll system. With this function, employees can unlock part of their earned salary if they want. You can withdraw up to 50 percent of your earnings in advance.
While businesses can use this feature for free, users are billed a meager flat fee for using Payday. It also doesn’t behave like debt or affect your creditworthiness. Only part of their salary is withdrawn upfront and they receive less money when they receive their wages. Those who do not use the advance salary function can see how much they have earned per month so far.
“We believe in the importance of making financial well-being accessible to all, and that includes focusing on the impact of financial stability on employee mental health,” said Nik Storonsky, Co-Founder and CEO of Revolut. “After the difficulties of last year, all the 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 dependency that is compounded by the monthly pay cycle. “