Payroll FinTechs: Financial Wellness for Employees

Table of Contents

FinTechs, in their quest to go after underserved segments, are going after a significant niche customer base: The Salaried Employees. Salaried employees, especially the ones with poor credit history and in need of quick-cash have relied upon the payday lenders for decades. With new regulatory interventions and consumer awareness, the payday lending industry is on its wane. A new breed of fintech startups has sprung across the world to fill this #whitespace.4 broad categories can be observed in this segment:⏱ Salary On-demand – This is a fast emerging category. Fintechs in this category are partnering with corporates, HR software providers and payroll systems to enable flexible access to earned wagesSalary Advance – Fintechs in this category provide short-term credit to employees based on their salary and avoid the exorbitant rates charged by erstwhile payday lendersEarly Direct Deposit – A prominent feature largely provided by new-age banks in the US and the UK, enables account holders to receive paychecks up to 2 days in advance from standard payday.Crypto Payroll – This is the newest category which enables firms to make wage payments through multiple crypto-currencies.With financial wellness gaining precedence across organisations, these fintechs are well-poised to serve a generation of a […]

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