Paymenow, a prominent Earned Wage Access (EWA) platform in South Africa, has secured a debt facility worth R250 million ($14 million) from Rand Merchant Bank (RMB) in a unique structure for the EWA market in the country. Paymenow's EWA financial wellness offering allows employees to access a percentage of their earned wages before the end of their payroll cycle without incurring costly loans, promoting financial wellness. Paymenow has witnessed tremendous growth in various industries, currently serving over 200,000 employees and projecting to double in the next year. The company's hybrid salary model offers employers the flexibility to offer their staff monthly, weekly, or daily payrolls, enhancing liquidity for employees and encouraging responsible financial behavior. RMB, an indirect shareholder in Paymenow through its shareholding in the DNI Group, has committed to a holistic partnership with Paymenow to enable the company to innovate, grow, and make a positive impact on society through financial education and wellness.
According to Paymenow CEO, Deon Nobrega, there is a significant demand for Paymenow's services in South Africa, with over 10 million of the country's 25 million active credit customers being behind on their payments. Nobrega added that access to funding, such as through the agreement with RMB, is a gratifying acknowledgment of the strength of Paymenow's model and a critical enabler of its future growth.
A recent impact report based on independent research conducted among 400 Paymenow customers showed that almost all respondents reported an improvement in their overall quality of life because of Paymenow, and nearly two-thirds reported significant improvements. Furthermore, 83% of customers said their ability to save had improved, and 95% had been able to reduce borrowing from money lenders, while 83% had more cash on hand to deal with emergencies.
Paymenow aims to alleviate the burden of unregulated short-term money lenders by providing affordable, real-time access to earned wages, educating and assisting South Africans in reaching their financial goals, and expanding across strategic jurisdictions across Africa, including Lesotho, Ghana, and Kenya. The fintech start-up is committed to promoting responsible financial behavior and encouraging a saving culture among employees, inspired by people and powered by technology.
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