Fintech software allows employees to access wages before payday
Paytime, a tech platform that plugs into payroll software allowing employees to access a portion of their earned pay before payday, has seen more than 2000 Australians sign its Paytition in the past month.
The company say the spiralling cost of living, inflation rising, and interest rates increasing each month have contributed to thousands of working Australians wanting control over when they're paid.
Paytime says McGrath Estate Agents, Supabarn Supermarkets, and Aspen Pharmacare are among several Australian companies allowing their staff to access their money after they have earned it, but before a set payday.
In the US and UK, Paytime says this is already a commonplace offering with Uber, McDonalds, KFC, Target, Foot Locker, Hilton Hotels, Paypal and Pizza Hut amongst the companies which have this in place for their staff.
Paytime CEO Steven Furman says with current labour shortages, many companies are looking at this as a way of attracting and retaining staff.
"Now that people have flexible work they are demanding flexible pay too," he says.
"We're seeing Australian families under greater financial pressures more than ever as household budgets are stretched and people are under financial stress. They're telling us a big part of that stress is unexpected (eg: medical bill) or unbudgeted expenses (eg: Rego) that come up that they haven't budgeted for."
Furman says that if somebody runs into an unexpected expense, their only solution is a credit card, buy now, pay later or a payday loan, and those options all put people into debt.
Paytime's software plugs into an employer's existing payroll, and by using an app, staff can access up to 70% of their earned wages on demand. They can only access a portion of what they've already earned so there's nothing to pay back - it's not a loan.
The company says unlike payroll, CRMs or ERP solutions, Paytime does all the heavy lifting when it comes to implementation, so there is very little required from the company's side.
Paytime says its system can be up and running in a few weeks, and it runs seamlessly in the background without needing to change payroll. There is also no effect on a company's cash flow when staff access their pay, as Paytime funds these withdrawals on behalf of the company.
"Paytime is an employer offered benefit which is why we started the Paytition. We've had thousands of Australians sign it to send a message to their employer that they want to be able to access their wages on their own terms," says Furman.
"Forcing people to have to wait for a set payday, regardless of whether its weekly, fortnightly or monthly is a concept governed by payroll software, so with leading edge technology that is available today, having to wait is now an outdated concept."
Furman says young workers, particularly millennials, are savvier than that. He says they're used to having instant access to most things in life, and now they want that same access to their wages too.
"Research has proven that forcing people to wait for a set payday does not help them budget better. We all work everyday, have expenses everyday, but are then forced to wait for a payday that suits the employer. Young families no longer feel that this is fair," he says.
"We're arguably heading towards a recession and employers need to now include financial wellbeing as a priority when it comes to looking after staff."