Independent research conducted by impact measurement company, 60 Decibels has brought to light the large positive impact that earned wage access (EWA) fintech, Paymenow, has on the lives of many South African employees. Almost all customers reported an overall improvement in the quality of their lives and nearly two-thirds reported significant improvements.
The Impact Performance Report was compiled on behalf of Paymenow and customers who use the Paymenow app were interviewed to find out how their lives have been impacted after having access to their already earned wages.
According to the survey results, Paymenow’s impact performance has improved with time. 94% of employees surveyed this year reported a higher positive impact on their quality of life, stress levels, financial control, and ability to save as compared to results from 2021, where 81% of customers reported improvements and 35% reported their quality of life ‘very much improved.’ Those residing in villages are more likely to report a ‘very much improved quality of life (71%) compared to those in cities (65%) and towns (56%).
Deon Nobrega, CEO of Paymenow, says: “EWA alleviates employees’ financial stress by helping them solve cash-flow shortfalls with their own money, instead of resorting to predatory solutions like loan sharks or high-interest credit cards and store cards and employers can leverage earned wage access to reduce employees’ financial strain, attract and retain more talent, enhance productivity, and help employees build financial resilience.
Employers who participate in employees’ financial wellness show intent and build trust with employees, thereby resulting in better employee experience and productivity. Every employee should have a right to a better financial future and this is what EWA ultimately aims to enable.
As a result of using Paymenow, workers stated that they felt more in control and less stressed about their finances, with 4 in 5 workers saying their ability to save had improved. It’s also positive to note that workers have also reduced borrowing funds from informal sources like money lenders and have more cash in hand for emergencies. Women are more likely to significantly report a decrease in borrowing from informal sources than men (98% vs. 94%). Furthermore, workers residing in cities and towns are more likely to have an increase of cash in hand compared to those in villages (87% vs. 71%).
Bryan Habana, co-founder and chief commercial officer at Paymenow says: “Paymenow is offering workers a unique service that was not readily available when they experienced intermittent shortfalls in cash. The majority of workers (97%) reported that they did not have prior access to a service like this. This indicates that the service provided is unique and is reaching an underserved base.
“It is also encouraging to note that Paymenow is maintaining its competitive position in the market with 99% of workers (compared to 97% of workers in 2021) saying that they cannot find a good alternative to Paymenow,” says Habana
In addition, the findings of the research indicated that Paymenow achieved a Net Promoter Score (NPS) of 74, far exceeding the 60dB benchmark of 38. The NPS is an internationally accepted measure that gauge’s customer satisfaction and loyalty. Paymenow users reported that they are largely satisfied with the service received from Paymenow, with the top drivers of satisfaction being low fees, easy access to money, and quick pay-outs.
Sasha Dichter, CEO of 60 Decibels indicated that Paymenow has not only achieved a high NPS score among financial service providers, but one of the higher NPS scores among companies in various sectors around the globe.
Nobrega said: “We are extremely proud of the NPS achieved by Paymenow, as this is an indication of the impact we are making on our users lives and sets Paymenow apart the competitive EWA industry.”
Other key findings from the report are: 45% of workers spoke about easy access to money, 45% reported decreased reliance on debt, and 26% mentioned being able to afford household bills.
A typical Paymenow customer is a 32-year-old living in an urban household with five members. 27% of Paymenow customers live in poverty and earn under $5.50 per day. This shows that Paymenow is making an impact in a section of the market that is historically underserved as it pertains to formally employed workers.
Paymenow’s solution works with any payroll software application, features bank-grade security and is fully plug-and-play in South Africa, Zambia, Namibia and Lesotho.