In an environment of continued hardship for consumers, with high inflation, raising the cost of living, and high interest rates punishing borrowers, the consequences of bad financial decisions can be disastrous.
This makes financial education programmes, such as that offered by leading earned-wage access (EWA) provider Paymenow, so crucial. Paymenow is a financial wellness and inclusion platform that allows employees to access a percentage of their accrued wages before the typical payday. This service is designed to address cash flow challenges, bolster financial security, and promote employee retention.
“Paymenow’s EWA programme is founded on the principles of responsible financial management, promoting financial literacy and responsible usage,” says Denise Neethling, Head of Marketing at Paymenow. “The Paymenow’s EWA offering includes financial education to encourage smart spending habits and promote prudent financial choices. Financial education, and a unique, gamified approach to encouraging better financial behaviour, is ingrained in the Paymenow platform.”
Paymenow offers users a choice between cashing out a portion of their already earned wages, or converting them into vouchers for necessities such as groceries, clothing, electricity and medical services. Vouchers can be used with a range of popular retailers, including Pick n Pay, Dis-Chem, Game, Makro, Pep and more.
Neethling says that fees are significantly cheaper if the user chooses vouchers, which makes them a sensible choice. “An analysis of our usage shows that the more financial-education modules a user has completed, the more likely they are to choose vouchers over cash, showing how the education programme leads to better financial decisions.”
Paymenow’s financial education system is tiered, with users gaining increased access to earned wages as they progress through the tiers and complete financial literacy training. As users progress through the tiers, they benefit from lower fees, incentivising responsible financial management and further encouraging financial literacy. Roughly two-thirds of Paymenow’s rapidly growing user base has reached the highest (gold) tier.
The in-app education programme offers a comprehensive approach to improving users’ financial skills, promoting responsible financial management, and enhancing their overall quality of life. “Users have access to a range of financial education modules including a budgeting feature, a financial health check feature, and a toll-free wellness line allowing users to discuss any potential financial issues with a registered financial advisor,” Neethling says.
By weaving financial education into its EWA programme, Paymenow empowers users to become financially independent, reduce financial stress, and build financial resilience. As a result, a significant majority of Paymenow users (94%) reported an increase in their quality of life after using the platform, and 95% of Paymenow users experienced a reduction in financial stress, demonstrating the platform’s positive impact on users’ financial well-being.
