Bank of New Zealand (BNZ) and employment solutions provider PaySauce today launched BNZ PayNow, an interest-free way for employees to access wages before payday and an alternative to payday loans predators.
BNZ PayNow is a feature of the PaySauce mobile app that allows employees to withdraw funds they have already earned, allowing them to choose their own pay on demand.
BNZ CEO Angela Mentis said: âPayNow is a real game-changer. It protects financially vulnerable workers and offers them an alternative to loan sharks and payday lenders with exorbitant interest rates.
âBNZ PayNow means people can access their pay before the usual bi-monthly or monthly pay period. For many people, PayNow will make the difference between paying for basic items such as food, clothing and education with their own money rather than high interest loans between paychecks, âshe says.
Although BNZ PayNow was initially offered on a limited basis through the PaySauce mobile app, BNZ funding solves small business cash flow issues by covering the advance of accrued wages and relieving financial pressure from employers.
PaySauce CEO Asantha Wijeyeratne said PayNow was an exciting project for the team.
âWe’re all so used to convenience and freedom as consumers, but payroll still operates on an outdated model. It seems obvious that it should be possible for employees to access their own money when they need it, without resorting to exploitative high interest lenders.
âWith the crucial support provided by BNZ, we can offer working Kiwis financial freedom and autonomy, without straining small businesses. We are proud to share this revolutionary feature with the national workforce, âshe said.
BNZ PayNow is part of BNZ’s efforts to disrupt predatory lending in New Zealand, including Good Loans, Habitat for Humanity and The Good Shop. Through these programs, BNZ has provided more than $ 9 million in assistance to vulnerable people.
Good Loans is a partnership between BNZ and Good Shepherd NZ, which provides interest-free or low-interest loans to people financially excluded from proper mainstream financial services. Good Loans is supported by the Department of Social Development and provided by community partners such as the Salvation Army, Aviva and Presbyterian Support Otago, and offers an alternative to using predatory loan sharks and lenders.
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