Revolut will allow you to access your wage early with new Payday feature

Revolut is launching a new feature which will allow users to access a proportion of their monthly wage early.

The feature, called Payday, is a new take on credit card debit and short-term credit such as BNPL schemes.

Users will be able to access the feature from inside the fintech app if a businesses decides to join with Revolut.

Only businesses in the UK are able to use the feature however the company has said it plans to roll out the service in Europe and the US.

In order for users to access the feature, Revolut has to first integrate an employer’s payroll system so that it has reference of employees’ wage packets.

However for ease of integration, Revolut has said employers don’t have to change their payroll systems.

Once the integration has been completed, a company’s employees are able to unlock a portion of their wage whenever they want.

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Users are able to access up to 50 per cent of what they’ve earned in advance.

The feature will start out free for businesses however Revolut will charge a small fee to users.

“We believe in the importance of making financial wellbeing accessible to all, and this includes focusing on the impact of financial stability on employees’ mental health,” Revolut chief executive Nik Storonsky said in a statement.

“After the difficulties of the past year, the last thing employees need now is financial uncertainty and stress. It is important to move away from a situation where many are dependent on payday loans and expensive short-term credit, a reliance that is exacerbated by the monthly pay cycle.“

Revolut fintech rival Monzo currently allows users to access their wage one day early however Revolut look to going one step further.

The move comes as there is rising concerns over personal debt due to buy now pay later (BNPL) schemes in the UK.

Recent data suggest that Brits owe on average around £244 to BNPL firms and experts are concerned it could affect mortgage applications.

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