Revolut launches payday advance feature in Ireland
The feature, which allows employees to access a portion of their salary as they earn it, was launched in the UK in August.
Revolut announced today (September 23) the release of its “Earned Salary Access” feature in Ireland.
Payday, which was launched in the UK just over a month ago, allows customers to access a portion of their pay commensurate with what they’ve earned, ahead of their regular payday. It costs users a flat fee of € 1.75 per withdrawal and is only available at participating workplaces.
Revolut described Payday as a “cheaper alternative to credit cards or high cost payday loans” that will “have no impact on an employee’s credit rating.”
He said companies don’t have to pay to use Payday, but it would be an “attractive advantage in attracting and retaining employees.” He added that Revolut’s platform can be integrated with existing payroll systems.
Employers who offer Payday still only have to pay wages at the end of the week or month, with Revolut covering the cost between employees withdrawing money and when they would typically be paid.
One of the first companies participating in the program in Ireland is Spectrum Life, which provides wellness services to employers such as Accenture, Microsoft, Vodafone and Laya Healthcare. Payday will now be offered as part of the Spectrum Life service package.
Stephen Costello, Founder and CEO of Spectrum Life, commented, “Our coaches and clinicians regularly face incidents where financial issues have contributed to the stress, anxiety or mental health issues a person faces when she calls on our services.
“Providing employees with greater financial flexibility through modern solutions, such as Payday by Revolut, can help alleviate some of the financial challenges an employee may face. “
Revolut plans to roll out the Payday feature to more EEA countries in the coming months, as well as the United States.
UK consumer watchdog Which one? has recently published guidelines on how to “securely” use salary access features such as Payday.
Neobanks and payment providers are increasingly looking to differentiate themselves with new financial products, particularly “buy now, pay later” services. Revolution is plans to enter this market and its British competitor Monzo released such a feature last week.
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