Revolut introduces Payday Early Wage Access for the UK
revolution works with employers in the UK to provide their employees with early pay access with FinTech’s latest financial services product: Payday.
Payday allows employees to withdraw some of their wages as they earn it and instantly transfer the money to their accounts, Revolut said in a press release on Thursday (Aug. 19).
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“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 the founder and CEO of Revolut Nik Storonsky.
He added that the past year has been tough for so many people and “the last thing employees need now” was more uncertainty about their finances.
“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,” said Storonsky.
The payday tool allows people to see how much money they have accumulated in revenue and withdraw it to their main account to keep track of bills and avoid debt, according to the press release.
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Revolut’s platform and app integrate with a company’s payroll network and have no impact on employees’ creditworthiness when they use the payday tool to report earned wages. Payday aims to be an easy to use solution between pay advance and other services available in Revolut’s app.
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The integration of the new tool costs companies nothing and their cash flow is not affected – employers continue to pay their employees at the end of each month. The tool is also intended to help increase employee satisfaction and financial well-being, and to reduce fluctuation.
Revolut was founded in London in 2015 and initially offered money transfers and exchanges. The startup now has dozens of products, over 16 million customers worldwide and processes more than 150 million transactions per month.