Revolut launches earned wage feature

Revolut is launching an earned wage access product which will allow employees to instantly access a portion of their salary as they earn it.

The FinTech giant said the Payday feature will be integrated into the Revolut app, and will enable employers to offer more flexibility and financial control to their employees.

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.

The feature will be cost-free for employers, and cashflow isn’t affected by the move, as employers will continue to pay employees salaries at the end of each month.

As part of the initial launch, Revolut is partnering with UK employers, with a plan to roll out the feature to countries in the EEA and US in the coming months.

Customers will be able to view their available accrued earnings and select the amount they want to withdraw directly into their main account, helping employees to instantly access their salaries earlier in the month.

Revolut said Payday has no impact on an employee’s credit score and will provide customers with a lower cost alternative to credit cards or payday loans that they might rely on to help with their cash flow problems.

Nik Storonsky, founder and chief executive 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 is exacerbated by the monthly pay cycle.“

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