Revolut has announced the launch of a feature, Payday, in Ireland which will allow users to access their wages before their wages are paid.
Following its launch in the
UK last month, the earned wage product will now be available in Ireland with plans to roll out in the US and EEA (European Economic Area) soon.
Once their employer has registered, employees will be able to instantly withdraw a portion of their accrued wages. Payday will give employees access to the wages they have already earned in the month so they can choose to be paid weekly, bi-weekly or even daily.
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 fee of €1.75 on the employee's side when they access their earned wages.
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 to 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 pay 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," Joe Heneghan, CEO of Revolut Europe 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."
Stephen Costello, CEO and Co-Founder of Spectrum.Life added: “Our Coaches and Clinicians regularly encounter incidents where financial concerns have contributed to the stress, anxiety or mental health issues that a person is dealing with when they engage our services.
"Providing employees with greater financial flexibility via modern-day solutions, such as Payday by Revolut, can help alleviate some of the financial challenges an employee may be facing."
Businesses and employees can get in touch and access more information via
payday@revolut.com or visit
www.revolut.com/payday.
