Grace Ashiru
Paymenow, The largest Earned Wage Access (EWA) firm in South Africa, received an R250 million (USD14 million) loan from Rand Merchant Bank (RMB). This is a big step forward for the EWA market in South Africa.
EWA lets workers take out a portion of their earned wages before the end of the payroll cycle, so they don’t have to take out expensive loans. This innovative financial wellness option is a game changer for employees who want to improve their financial health and save more money.
Paymenow has grown quickly in many industries, such as retail, mining, security, cleaning, and facilities management, and it now serves over 200,000 workers. In the next year, they plan to double that number.
CEO Deon Nobrega is thrilled with how popular Paymenow’s services are in South Africa, where over 10 million of the 25 million active credit users are behind on their payments. The potential market for liquidity is huge, and Paymenow’s model is a valuable asset to customers.
One of Paymenow’s main advantages is its flexibility, which enables employers to offer a hybrid salary model, giving workers access to a part of their income when they need it the most.
RMB is excited to keep working with Paymenow to promote financial education and well-being because it owns shares in the DNI Group, which owns shares in Paymenow.
The Paymenow impact report, which is based on independent research done with 400 customers, shows how the site has helped improve their lives. Almost all of the people who answered said that their general quality of life had improved, and nearly two-thirds said it had gotten much better. 83% of customers said they were better able to save, and 95% said they borrowed less money from money lenders.
Paymenow is also spreading its services to Namibia and Zambia, and it has plans to grow even more in Africa, including in Lesotho, Ghana, and Kenya. With this expansion, more people will be able to get access to financial wellness and liquidity, and Paymenow will be able to have a bigger effect on society.
