Have you heard of on-demand pay?
There are two weeks until payday, and financial stress is rearing its ugly head again. Your company doesn’t have early wage access or on-demand pay though.
Whether it’s from an overdraft, a sudden and unexpected expense, or the drain of credit card debt, you’re stuck with an all-too-familiar problem.
Problem = There are too many days left before pay day.
Technology is Always Changing
And it’s even harder when it becomes a recurring cycle that you can’t seem to break out of. Fortunately, recent trends have seen on-demand pay in Australia become a growing trend.
Also known as early wage access, it’s a flexible, modern alternative to traditional payroll cycles, and it’s taking the world by storm.
Good thing, too. It’s about time.
The Hardship of Financial Stress
Nobody who works for a living should have to worry about making ends meet.
It feels like a slap in the face and an extra burden added to the existing stress of working full-time. And yet, if you’re struggling with financial problems, know that you’re not alone.
Millions of Australians across the country face the same hardships.
In fact, the problem of financial security is so widespread that almost half of all Australians report money worries in their daily lives.
50% worry about coping with their normal monthly expenses. Over a quarter report high or overwhelming financial stress.
It’s more than an isolated problem.
It’s a widespread toxin. Like a parasite, constant financial worries cut to the bone and create feelings of anxiety. They engender fears about your own future and that of your loved ones.
Stress Can Be A Vicious Cycle
Ongoing angst strains personal relationships and causes us to stick around in jobs we hate. The result is a vicious cycle of diminished confidence and low self-esteem.
To counteract monthly income deficits, many turn to short-term credit loans, go into the red on their bank accounts or borrow from friends and family.
None of these are sustainable solutions.
A major contributor to financial stress is the traditional pay cycle.
The Employee Paycycle
Employers pay out what’s due on a monthly or bi-weekly basis. But when you need money now, this schedule doesn’t work. On-demand pay is a great alternative.
What is On-Demand Pay?
You may be surprised to learn that 46% of Australians are living paycheque to paycheque. Half of the population wouldn’t be able to survive for more than a month if they suddenly lost their jobs.
We live in an age of instant gratification.
You can pay for anything online instantly, so why shouldn’t it work the other way around for employees?
On-demand pay is a new trend that presents a great opportunity that meets that very need. It’s a fantastic option for when income and expense don’t line up on the calendar.
But what about the fees for early wage access?
Unlike infamous payday loans, which typically charge exorbitant interest and late payment fees. On-demand pay is not credit and your employer can choose to pay the transaction fees as well.
On-demand pay allows employees to withdraw part or all of their accrued income when they see fit. With it, there’s no need to wait for payday to get paid.
You could withdraw your earnings every other day or every week should you see fit.
And that’s where the magic is – it hands the power back to you.
The Benefits of Early Wage Access
Here’s a staggering figure. Across OECD countries, employees generate $1 trillion in payroll accounts every month.
The case for on-demand pay follows fairly logically: around half of individuals experience intermittent financial shortfalls between pay periods throughout the year. That means late fees and other debt that’s racked up because of outdated payroll practices.
Instant Access To Your Pay
Early wage access grants Australians everywhere instant access to the money that’s owed to them. Transactions happen in real-time, on your own time, with only very modest associated fees.
One of the key benefits of on-demand pay is adaptability. Financial emergencies can happen to anybody at any time – and they can never be planned for in advance.
That’s what makes them emergencies in the first place.
The pay-on-demand model lets you avoid overdrafts, payday lending, and credit card debt at a fraction of the cost. Ultimately, this lets you make the most of your earnings.
And it’s 2021.
It’s about time for a different approach to getting paid for hard work.
Things To Take Into Account for On-Demand Pay in Australia
While on-demand pay is a great alternative to traditional payroll structures, a few things to bear in mind.
On the one hand, on-demand pay allows for quicker payments to suit your needs, as well as a financial safety net for emergencies.
However, if your employer agrees to start offering on-demand pay, it’s important not to lose sight of the bigger picture.
Micro transactions add up over time.
What’s more, on-demand pay remains a service provided to your from your employer. Depending on the provider, your employer may cover the fees, but some providers charge a small fee for on-demand withdrawals.
This shouldn’t put you off, though.
The withdrawal fees are substantially lower than overdraft interest or late payment fees, making them a better alternative.
What is CashD - On Demand Pay?
The Pay Cycle is Done!
Financial stress is a common difficulty for millions of Australians, but it doesn’t have to be that way.
If the recent past has taught us anything, it’s that financial stress is rife – and companies are taking notice.
Early wage access is a great way to ensure financial flexibility for employees everywhere.
That’s why more employers than ever are adopting flexible payment models.
Check our FAQ page for more information about how you can make on-demand pay in Australia work for you and your employer.