Leading earned-wage access (EWA) provider Paymenow has released its 2023 Impact Performance Report, independently prepared by impact-measurement specialists 60_decibels.
Earned Wage Access (EWA) is a financial technology that allows employees to access their earned wages before their regular pay cycle. EWA is beneficial for employees who need access to their earned wages in real-time – an ever-more common situation in an economic environment marked by persistent cost-of-living increases.
Denise Neethling, Marketing Manager at Paymenow says, “For the past three years we have engaged 60_decibels to conduct independent research into the impact of EWA on the lives of our customers and each year we see the positive impact that Paymenow has on people’s quality of life (94%), financial stress (67%) and improved financial independence (70%).
Key insights from the research
Paymenow is having an overwhelmingly positive impact on the lives of its customers
94% of Paymenow customers say their quality of life has improved, with two-thirds reporting significant improvements. These customers talk about increased financial access, improved financial independence, and a decrease in stress levels as having contributed to their improved quality of life.
Paymenow is preventing over-indebtedness
92% of customers would have had to borrow money if they hadn’t had support from Paymenow. This is consistent with 4 in 5 customers saying their total debt level is slightly or much lower since they started using Paymenow. A 37-year-old female respondent said, “During the month when I do not have money, I can go to Paymenow to get money to buy groceries and pay money to pay for transport. It is very quick to get assistance from Paymenow.”
Paymenow is improving customers’ perception of their employers
Nearly 4 in 5 customers say Paymenow has had a positive effect on their perception of their employers. These customers talk about how they now perceive their employer as being more caring and considerate, and about how they have better financial well-being and reduced financial stress. As a 31-year-old female respondent said, “Because Paymenow has come as a help to us, we look at [our employer] differently ever since it was introduced, we have a big load off our shoulders.”
Satisfaction is high among customers
Paymenow’s Net Promoter Score®, an indicator that gauges customer loyalty, is 75 – an excellent score that indicates customers are largely satisfied with their service. This is driven by a high number of Promoters and a low number of Detractors. Top satisfaction drivers are affordable rates and charges, quick loan processing, and improved financial access. Additionally, 9 in 10 customers say Paymenow offers good value for money and nearly all customers say they would be disappointed if they did not have access to Paymenow’s services.
Paymenow customer profile
47% of the customers interviewed were female. 54% of Paymenow customers are in the bottom 60th percentile of the national population in terms of wealth. A typical Paymenow customer is a 35-year-old male, living in a peri-urban area in a household of five. Nearly all customers say they had no prior access to services like the one Paymenow provides, and nearly all customers say they could not easily find a good alternative to Paymenow’s service.
Performance against industry benchmarks
The findings from the report placed Paymenow in the top 20% of performance relative to the FI Africa Benchmarks in three of six indicators, in the top 40% in a further indicator, and within the top 60% in the final two indicators.
“A key finding in the report was that Paymenow is a consistent performer, with the company’s performance across the proportion of customers gaining first access, access to alternatives, and satisfaction remaining steady from 2022,” Neethling says. “As Paymenow continues to lead the field in what is a nascent but fast-growing sector worldwide, the winners will continue to be the South African businesses and workers empowered with greater financial freedom and a better quality of life.”
