There was a time a trend was making rounds on social media platforms where people would post statements like; “God please give me one million from my future…” For many of us, we wish it were so. But, while we can’t make your wish come true by helping you with God’s loan application processes, how about we show you a way to access your salary even before payday? With on-demand pay from Earnipay, you can enjoy this possibility and say goodbye to your money worries.
The best part is that on-demand pay is NOT a loan. Instead, it can more appropriately be described as a way of earning your wages immediately after rendering your service. Let’s put this in perspective, while you typically have to wait till the end of the month to receive salaries, you can get paid at 5 pm every day with our on-demand pay solution.
With the rising inflation rate of 21.82% in January 2023 and the resulting increase in the prices of necessities, on-demand pay offers a better alternative to employees who would have normally resorted to borrowing from loan apps with outrageous interest rates.
The goal of this article is to help you understand what on-demand pay is, how it works, and how it is different from a loan, as well as the many benefits it offers. Let’s begin!
What is on-demand Pay, and how does it work?
On-demand pay is a payment method that makes it possible for employees to tap into their earned wages before payday. Also known as earned wage access, it is a tool used by employers to promote their employees’ financial wellness. This payment method gives employees control over their earnings such that they no longer have to wait to be paid at the end of the month. On-demand pay is a great option for companies looking to improve their benefits offering, and you can easily get started by enrolling your employee with an On Demand pay provider.
To properly analyze how on-demand pay works, picture this scenario;
Kunle works as a business consultant and earns a salary of #600,000 monthly, earning #20,000 daily. It was a week into the new month, and Kunle’s cash reserve was exhausted. He was left with 2 options; borrowing from a loan app or from a friend. But with on-demand pay, Kunle can easily access the wages he has worked for to sort out his bills without having to borrow.
So instead of waiting to borrow from your future, why don’t you access the wages you’ve earned up to date to settle your pressing needs?
How is on-demand pay different from a loan?
On-demand pay is not a loan. Although there are lots of schemes developed by financial services providers committed to improving financial wellness through payday loans or other regular loan apps, on-demand pay is a better option for so many reasons. But before we get into the many benefits it offers, we have highlighted the major differences between a loan and Ondemand pay in the table below for your easy consideration.
|With this service, you are simply accessing your earned wages and not borrowing from a third party.||This involves borrowing from financial service providers or loan apps.|
|Free for employers, but employees would be required to pay a transaction fee. There are no interest rates whatsoever.||Loans have excessive interest rates and hidden charges attached to them.|
|Part of the employer’s benefits package.||Not part of an organization’s benefits package.|
|Promotes financial wellness.||Makes your finances even worse.|
What are the benefits of On-demand Pay?
Asides from the resulting financial benefits that on-demand pay offers to employees, you’d be surprised to know that this payment method has much more to offer to both employers and employees. Check out some of them below.
Helps with emergencies
It is normal for emergencies and unexpected expenses to arise, and you immediately need access to funds. But instead of visiting loan apps with excessive interest rates out of desperation, on-demand pay provides a better way to easily access funds by withdrawing from your earned wages.
Improves employers reputation
Employers that enrol their employees for on-demand pay have a better reputation in the labour market. They also have a high employee retention rate since, according to a survey by PWC, employees that are financially stressed are twice as likely to look for a new job. As an employee interested in improving the financial well-being of employees and building a motivated team, you should consider enrolling your employees in an on-demand pay service. The best part is you don’t need to spend a dime.
Attracts new talents
Everyone wants to work where they feel appreciated and valued. By offering on-demand service as part of your company’s perks, you are more likely to attract the best talent since this shows your concern for the financial wellness of your employees.
If you’ve been looking for a cost-effective way to improve the financial well-being of your employee, you should consider enrolling them for on-demand pay service for free. If you’re ready to get started, head over to our website and request a demo today.