Here’s a company that’s been making news headlines and for all the right reasons!
FlexxPay’s financial wellness platform – the first of its kind in the region – is set to revolutionize salary payments in the UAE. With its on-demand salary disbursement service, the company aims to provide financial relief to millions of UAE residents who are living paycheck-to-paycheck.
Globally, the solution has been met with a lot of enthusiasm, especially in countries like the US and the UK. FinTech startups are trying to tackle the traditional pay cycle, by offering employees the flexibility to choose when they receive their salary.
How does it work?
An employer may choose to offer FlexxPay as part of its employee benefits. Once the employer successfully signs up on the platform, the FlexxPay team reviews their details and activates the account. Next, the employees can be brought onboard the platform following HR verification. It takes 48 hours for the service to go live.
Once it’s all set up, employees can access the earned portion of their salary before payday. Think of it as a mid-month salary advance. Here’s an example to simplify it further – Say it’s the middle of November, and you’re due to receive your monthly salary of AED 10,000 on the last day of the month. Through the FlexxPay platform, you can apply to get half of your salary – AED 5,000 (earned up until November 15th) credited into your bank account.
Don’t confuse FlexxPay’s services with a loan or credit facility – There are no interest payments and credit checks involved. It is simply a technology-based solution.
On top of the advance salary, FlexxPay also enables employees to manage their finances better. The platform offers a number of value-added services like bank transfers, cash withdrawals, and utility bill payments. Employees can even set up a savings plan through FlexxPay.
At the end of the month, the employer pays all the advances and fees accumulated during the salary cycle to FlexxPay. The employee receives the remaining salary (after deducting advance salary and FlexxPay’s service fee).
How does FlexxPay make money?
FlexxPay levies a nominal transaction fee when an employees accesses their salary through the platform. The savings tool, however, is available to employees free of charge. Employers are not charged for the service.
What’s in it for employees?
FlexxPay’s services are good news for UAE-based employees who live paycheck-to-paycheck and struggle to keep up with their monthly financial obligations. This vulnerable segment of the population is at the highest risk of being trapped in a vicious cycle of debt. By allowing such people access to their salary when they need it most, FlexxPay can help them avoid expensive forms of debt like credit cards and private loans.
What’s in it for employers?
Employers can make their employee benefit packages more attractive and competitive by tying up with FlexxPay. It also allows HR departments to cut the time spent on reviewing advance salary requests. Eventually, happier employees translate into a higher retention rate and lower recruitment costs for employers.