A common question we at Floatpays gets asked is
“Why should we enable employees to access a portion of their earned wages before payday? Would this not create a culture of borrowing in an organisation?”
South African Reserve Bank statistics show that a systemic culture of borrowing already exists with household debt in South Africa at 72.80 percent of gross income pre COVID-19. A TymeBank survey supports this by showing that 76% of South Africans are not making it through the month with their pay, with over 40% of people spending between 41% to 100% of their income on paying off debt.
Consider that for a second. More than two out of every three people you see probably won’t be able put food on the table by the end of the month as a result of having to pay off debt. As is often the case, the interest on their loans is so high that individuals will have to resort to taking out extra loans to help pay off that debt. The culture of borrowing is alive and well in South Africa, whether companies acknowledge it or not.
At Floatpays we believe we have the social responsibility to help eradicate payday loans and assist employees to break the cycle of damaging debt through a holistic approach to financial wellness. We do this by helping employees navigate the complexities of day-to-day money management with free budget & financial planning tools. Our free in-app financial literacy training equips employees with the knowledge to make better money decisions. We empower employees with a responsible alternative to high interest loans through real-time access to a portion of their earned wages.
We’re looking to partner with companies that recognise that their employees are their most valuable asset. By providing financial health as an employee benefit you can empower your employees to achieve financial stability.