New App Lets Employees Access Cash as Advance on Their Wages
March 29, 2019
An app-based company called Wagestream is aiming to help businesses and other organisations eradicate the reliance on high interest loans among the members of their workforce.
The app lets employers offer their staff the opportunity to access a certain percentage of their wages as they’re earned so that they don’t have to use payday loans instead.
The idea is that by making this service available to their staff, employers can encourage healthier and more sustainable financial management within their workforce.
Wagestream has pointed out in support of its offering that employees around the UK are collectively charged many millions of pounds in interest on their credit deals every month.
The Wagestream app is designed to be very easy to use via any smartphone device and to integrate seamlessly into an employer’s financial management setup in a way that then connects directly to an individual employee’s bank account.
Wagestream users are also given the option of streaming parts of their monthly salaries directly into a savings account rather than a current account.
Financial education is also provided via the Wagestream app in conjunction with the Money Advice Service (MAS), which is a government-backed provider of guidance and support in relation to personal financial management.
Wagestream’s services are framed by the company as being opportunities for individuals to establish “better financial wellness” for themselves and to avoid “cycles of debt caused by overdraft fees, high-interest credit and payday loans”.
The company behind the app is registered with the Financial Conduct Authority (FCA), the main regulator of the UK’s entire financial services industry, and the Wagestream system is designed to appeal to employers as well as to their staff.
Part of the company’s pitch is that in addition to helping individual workers avoid debt problems, the Wagestream app can enable organisations to improve productivity within their workforces and retain staff members for longer than they otherwise might.
Companies already using the app include the Camden Town Brewery, the David Lloyd Club sports centre organisation and the technology-based security products firm Key Security.