When did On-Demand Pay start in Nigeria?

It is no longer news that many employees are usually in a fix when they have little or no money to take care of their pressing needs making the introduction of on-demand pay essential. These employees often resort to either borrowing, taking a loan, or requesting a salary advance.

A bid to solve this pertinent issue among employees brought about the introduction of On-Demand Pay in Nigeria, by a financial service provider called Earnipay.

At Earnipay, we provide finance & people operations services for modern businesses. We also provide financing and best-in-class technology solutions for businesses to improve their daily finance and people operations in order to get the best results. We are for modern businesses, both start-ups and established companies, who want to improve their finance and people processes and provide financial wellness tools for their employees.

Whether you are a small or big business owner, an HR manager, or a finance professional, we at Earnipay, can help you streamline your operations and drive success for your business. 

On-demand pay was introduced in Nigeria in 2022 by Earnipay to ensure that salary earners have better control of their finances and to reduce the stress it takes to access money by employees who live from paycheck to paycheck.

Since the introduction of On-Demand Pay in Nigeria, many employees have made better financial decisions on how they spend, save, and invest their earned wages. It also has reduced the chances of employees taking up loans from payday lending sharks.

What is On-Demand Pay?

On-demand pay is a technology-driven solution that allows employees to access their earned wages (salaries) before their next scheduled payday. As one of the products we offer at Earnipay, On-demand pay allows you to easily request and receive payment for the days you have already worked, helping to improve financial stability and reduce the need for high-interest loans or other forms of credit. 

Earned Salaries are salaries accrued based on the number of days worked. An employee with a monthly net salary of N300,000 in a 30-day month would earn N10,000 per day. In five (5) days, the employee would accrue N50,000. With Earnipay, such employee can access 50% of their earned salary and not need to wait till the end of the month or borrow to afford daily expenses and urgent payments.

On-demand pay also known as Earned wage access is not a loan, nor does it require repayment with an interest rate. It allows employees to access their earned or accrued wages (salaries) before the fixed payroll cycle. 

Benefits of using on-demand pay for employees

• Gives a financial safety net to cover expenses and urgent payments.
• Allows you to take advantage of investment opportunities with flexible pay.
• On-demand pay helps you avoid unnecessary borrowing and becoming a target for predatory loan sharks.
• It allows you to access your earned salary on the go via our web app, or mobile app (Playstore or App Store).

Benefits of real-time salary access for the employer

Productivity: Our on-demand pay product boosts employee productivity and motivation by helping them access financial wellness products – Flexible salary access, and On-Demand Savings.

Cashflow support: No pressure on business cash flow to fund salary advances because employees can now access their earned salaries any time before payday with Earnipay.

Talent: As the world of work changes, Earnipay offers employers the ability to attract and retain top talent by providing the number one benefit employees truly deserve.

People-centered: Have a reputation as an employee-centric company that cares about its employees.

How can Employers join and use On-demand pay?

Sign Up: As an employer, you’ll be required to provide the company name and address, registration number, total number of employees, Tax Identification Number (TIN), and total net monthly payroll. 

Verification: The information required will be verified after which you’ll be required to upload your employee details.

Add new employees: Upload your employees’ information by clicking Add New Employees. After that, an invitation email and SMS will be sent to your employees, inviting them to activate their accounts. You can also group your employees, set different withdrawal limits, and allow auto-withdrawal for each group.

Manage: You can track/view withdrawals, repay withdrawal earnings, and manage your payroll.

How can Employees join and use On-demand pay?

Invitation Email/SMS: Employees receive an invitation email and SMS after their employer signs up on Earnipay.

Activate: Employees activate their accounts by using the web app, or mobile app on Playstore or App Store, and setting their withdrawal pins.

Withdraw: Employees can withdraw up to 50% of their earned salaries. What is accessible per time will be shown on the employee portal.