London-based fintech Revolut has announced the launch of Payday, a new feature that lets users unlock a portion of their wages early. This is an alternative to credit card debt and short-term credit. When a business integrates with Revolut, its users can access the Payday feature directly from the app.
Currently, the Revolut Payday feature is limited to businesses based in the UK. The fintech intends to launch this feature to the businesses in the US and European Economic Area as well. However, Payday will not be available to all those who receive their salary in their Revolut account via direct deposit.
Revolut Payday feature
The fintech has to plug into the payroll system of the employer to know how much employees are earning. Also, it notes that employees need not change their payroll system. With this feature, employees can unlock a portion of their earned pay when they want. They can withdraw up to 50 per cent of what they earn in advance.