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How Wagestream is eradicating post-Christmas numbers

Financial wellness fintech startup Wagestream has revealed that Christmas debt is crippling 50% of the UK population. This coincided with Joseph Rowntree Foundation (JRF) research which identified that the number of poor British workers is beyond employment.

With shiftworkers being the worst affected and having to put over £300 of festive 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 pays in January, but still remains in the red until May.

On top of that, 34% aren’t getting paid to work over Christmas until this month, making this time of year lucrative for high-interest credit providers and getting many to start 2019. with hundreds of pounds in debt.

The JRFs The latest UK Poverty Report found that four million workers 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 far more for financial well-being than fintech companies that offer budget plans and expense trackers.

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

Briffett went on to point out that while Wagestream’s original mission was to destroy payday loans and give UK workers a financial cushion they can rely on for unexpected 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 accessing their pay in real time, including Key Security, Camden Town Brewery and Fourth, which provides cloud-based hospitality solutions for brands such as David Lloyd Clubs.

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

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

“Salaried 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, 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 levies, so it’s really a financial cushion, available for unforeseen expenses.

Wagestream was launched shortly after major payday lender Wonga came into operation in August 2018 and in next monthdonated all of its earnings to the StepChange Debt Charity, which helps people with debt problems regain control of their finances.

On this, Briffett said he “would like to see payday loans gone. Over the next two or three years we will definitely see a reduction, not only Due to fines imposed on them by regulators, but there will be After choice for consumers, which will be great.