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How technology can drive on-demand salary for African employees
The Governor of the Central Bank of Nigeria recently cautioned Nigerians against seeking credit facilities from loan sharks for financial purposes. This is most common due to the 30-day pay cycle. Nonso Onwuzulike, CEO of Earnipay, joins CNBC Africa to discuss how they are solving this problem for employees that need their salaries on-demand.
Thu, 24 Feb 2022 12:15:22 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- On-demand salary access allows employees to access a portion of their earnings based on the days worked, breaking the traditional 30-day pay cycle.
- Earnipay's model aims to address the rising cost of living that often outpaces monthly salaries, providing a sustainable financial solution for employees.
- The company plans to expand its services across African countries to cater to the growing demand for flexible financial solutions and empower workers to make better financial decisions.
The Governor of the Central Bank of Nigeria recently cautioned Nigerians against seeking credit from loan sharks to bridge financial gaps due to the 30-day pay cycle. In response to this challenge, Earnipay, led by CEO Nonso Onwuzulike, has launched a solution to provide on-demand access to salaries for employees in need. On-demand salary access allows employees to access a portion of their salary based on the number of days they have worked, breaking the traditional monthly pay cycle. By partnering with employers and integrating with existing payroll systems, Earnipay aims to alleviate financial stress for employees and improve their financial well-being.
Earnipay's business model centers around addressing the increasing cost of living that often surpasses monthly salaries, leaving employees financially strained before the end of the pay cycle. With on-demand access to their earnings, employees can manage their expenses more effectively and avoid resorting to expensive lending options that perpetuate debt cycles. By limiting the amount employees can access in advance and charging a nominal fee, Earnipay aims to provide a sustainable solution to financial challenges faced by workers in Nigeria and beyond.
The company officially launched last month following a successful beta testing phase with both large and small companies. Through this testing period, Earnipay observed a positive impact on employee productivity and well-being. By offering on-demand salary access as a workplace benefit, employers have seen a reduction in distractions and improved focus among employees. With the rising demand for flexible financial solutions, Earnipay is confident in the viability of its model and envisions a future where on-demand salary is the norm.
Looking ahead, Earnipay plans to expand its services across African countries to reach a broader audience in need of financial support. While the concept of on-demand salary is still relatively new and may face resistance from traditional pay structures, the company sees a growing opportunity to cater to millennials and Gen Z workers who prioritize financial flexibility and well-being in the workplace. By partnering with local employers and providing a valuable benefit to employees, Earnipay aims to revolutionize the way salaries are distributed and empower workers to make better financial decisions.
As Earnipay continues to disrupt the traditional pay cycle, the feedback from both employees and employers has been encouraging. Employers recognize the value of offering on-demand salary access as a competitive advantage in attracting and retaining top talent. By enhancing employee engagement and satisfaction through financial empowerment, companies can create a more productive and loyal workforce. Ultimately, Earnipay's innovative solution not only benefits individual employees in need of immediate funds but also contributes to the overall financial wellness and stability of the African workforce.
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