Paymenow raises R250 million debt facility through RMB to expand access to earned wages

Market-leading Earned Wage Access (EWA) platform Paymenow has raised a R250 million (USD14 million) debt facility through Rand Merchant Bank (RMB) in a first-of-its-kind structure for the EWA market in South Africa.

EWA is a financial wellness offering to employees which allows them to access a percentage of their accrued wages before the end of their payroll cycle. It enables employees to unlock funds without the threat of costly loans, and carries the added benefit of building savings and improving financial wellness.

The pioneering agreement comes off the back of Paymenow’s massive growth in the retail, mining, security, cleaning and facilities management industries. Paymenow currently services over 200,000 employees, with growth projections planned to double in the next year.

Deon Nobrega, CEO of Paymenow Group, said, “There is tremendous demand for Paymenow’s services in South Africa, which has 25 million active credit customers, of whom more than 10 million  are behind on their payments. As such, the population of people looking for access to liquidity is enormous, and our ability to provide this liquidity without compromising financial health is having a remarkable positive impact. Access to funding, such as through the agreement with RMB, is a gratifying acknowledgement of the strength of our model, and a key enabler of our future growth.”

Most companies have cyclical cashflows which make it difficult to allow employees the flexibility of monthly, weekly or even daily payrolls. Paymenow enables this flexibility by allowing employers to offer their staff a hybrid salary model, assisting those employees who need access to a portion of their salaries – typically for transport, groceries and utilities – as and when they earn it.

RMB said that by virtue of its shareholding in the DNI Group, RMB as an indirect shareholder, in Paymenow will continue to support the business growth plans and the positive impact it is making on society through financial wellness and education.