How Wagestream is eradicating counting after Christmas

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Financial wellness fintech startup Wagestream has revealed Christmas debt cripples 50% of Britain’s population. This coincided with research by the Joseph Rowntree Foundation (JRF) which identified that the number of UK workers living in poverty is exceeding employment.

With shiftworkers being the hardest hit and having to put more than £ 300 in party spending on credit, most are forced to spend more than their budget allows and even seek additional credits or loans to last until the day of retirement. pays in January, but still remain in the red until May.

On top of that, 34% don’t get paid to work on Christmas until this month, making this a lucrative time of year for high-interest credit providers and many from 2019 onwards in the hundreds of debt books.

The JRFs The latest UK poverty report found four million working people now live in poverty and financial stress is exacerbated by the extended pay cycle between December and January. Wagestream has a solution.

In conversation with Peter Briffett, CEO and co-founder at Wagestream, he explained that the platform they offer does a lot more for financial well-being than the fintech companies that offer budget plans and expense tracks.

“We are a platform that allows any worker, whether salaried or paid by the hour, to have access to their income at any time during a given month. in contempt of their employer. Instead of having to wait for payday, we give them access to the paycheck they’ve earned, so if they have an unforeseen expense, they don’t have to incur overdraft fees, credit card debt. credit or in the worst case, take out a payday loan. “

Briffett went on to point out that if Wagestream’s original mission was to destroy payday loans and give UK workers a financial cushion they can rely on for unforeseen expenses, their mission is to reduce the poverty premium and disrupt the monthly pay cycle.

Wagestream’s Get-Paid-As-You-Go service, the first of its kind to be authorized by the FCA, already has more than 20,000 employees in the UK who access their salaries in real time, including Key Security, Camden Town Brewery and Fourth, which provides cloud-based hospitality solutions for brands like David Lloyd Clubs.

The offer that raised £ 4.5million from backers including the as QED Investors, Village Global (the social impact fund supported by Jeff Bezos, Bill Gates and Mark Zuckerberg) and London Co-Investment Fund. It promises a 10 percent increase in employee retention, a 20 percent improvement in workforce productivity, and a 100 percent increase in job applicants after a company is Wagestream accredited.

Briffett said the productivity gain is known when a link is made between work and financial reward. “If the employees do a shift and get paid immediately, they will see the positive financial impact of more shifts. We are between payroll and payroll information, so we are able to see what an employee has earned and the employee can only access what they have earned through the app.

“Employees will see an increase every five minutes and shift workers will see the same at the end of their shift. We only have access to a portion of their net income, which is about 40% of their net income that they can withdraw. We want them to have money at the end of the month to be able to cover all the debits so it’s really just a financial cushion, available for unforeseen expenses.

Wagestream was launched shortly after leading payday lender Wonga was put into administration in August 2018 and in next month, has donated all of her income to StepChange Debt Charity, which helps people with debt problems take back control of their finances.

In this regard, Briffett said he “would love to see the end of payday loans. Over the next two or three years we will definitely see a reduction, not only Due to the fines imposed on them by regulators, but there will be Following choice for consumers, which is going to be great.

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