New Revolut feature will allow users access their wages before payday
The new feature has already rolled out in the UK and should be extended to the EU in the coming months.
Revolut has announced that it will launch a feature to allow people to instantly access their salary as they earn it instead of waiting for monthly payments.
The earned wage access product will give employees the ability to instantly access a portion of their salary as they earn it and will be integrated into the Revolut app.
The 'Payday' feature will not operate as a loan or a credit and eligible customers will only be able to withdraw money that they've earned, but haven't been paid yet.
The platform and app will plug into an employer's payroll system, allowing employees to draw down part of their wages earlier in the month for a small, flat fee.
As part of the initial launch, Revolut is partnering with UK employers, with a plan to roll out to countries in the EEA and US over the coming months.
The company said that they launched the feature in an attempt to "remove the financial stress many workers face between monthly paydays", improve "financial wellbeing" and help people "avoid reliance on high-cost credit products such as payday loans."
The feature will also be cost-free for employers to impliment as they will still be paying employees monthly, meaning cash-flow won't be impacted by the move.
Customers will be able to view their available accrued earnings and select the amount they want to withdraw directly into their main account. Payday also won't have an impact on an employee’s credit score.
“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," Nik Storonsky, Founder and CEO at Revolut said.
"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.“