Naspers has made an R15 million ($1 million) investment in Floatpays, an on-demand earned wage access platform that helps clients improve financial wellbeing, through its R1.4 billion early-stage innovation investment vehicle Naspers Foundry.
“We welcome the support of and partnership with Naspers Foundry that will enable us to fulfil our vision of enabling South Africans to achieve financial well-being. Floatpays provides much-needed access to funds to ordinary people and a growing suite of other financial services, fostering a more productive and healthier workforce with greater financial security,” Simon Ward, founder and CEO of Floatpays, said.
Why The Investors Invested
Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, comments: “We’re excited to invest in and support Floatpays in its aim to help people avoid debt and provide support to South Africans during these challenging economic times. Financial inclusion is important to us, being well-aligned with our purpose of using technology to improve people’s everyday lives, and our commitment to help our country towards economic recovery.”
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Fabian Whate, head of Naspers Foundry, says: “On-demand earned wage access is fast-growing within the fintech sector. While still nascent in South Africa, there is significant potential for Floatpays, which is focused on serving the underbanked. We’re delighted to partner with the Floatpays team, who have a proven track record of success in early-stage tech businesses, particularly in fintech.”
Since its inception in 2019, Naspers Foundry has made three fintech investments and completed nine transactions.
Floatpays’ aim, according to Naspers, is to help clients achieve financial well-being by helping them move from debt to savings by improving access to their wages, budgeting, and financial knowledge. Floatpays’ technology interfaces with a firm’s existing payroll system, allowing employees to receive a portion of their earned pay at any moment during the compensation cycle, according to the company.
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According to Naspers, more than a quarter of clients polled in the Wellness Warehouse Case Study in 2021 stated the earned wage access platform helped them avoid payday loans.
According to the same poll, 88 percent of users stated they were better off financially as a result of utilizing the network.
A Look At What Floatpays Does
Floatpays helps clients lessen their reliance on debt, start saving, and develop skills to better manage their money. The startup was founded in 2019 by Simon Ward.
Customers can have real-time access to a portion of their unpaid income at any moment during the month using Floatpays, giving them an alternative to using credit to cover unexpected needs.
According to a statement, the Floatpays solution can help employees avoid costly credit, payday lenders, and borrowing from family or friends when they need money to get through the week.
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Floatpays also aids companies, allowing them to assist their employees in achieving financial wellbeing, according to Naspers.
Employees can use the Floatpays solution via an iOS, Android, or USSD app on their smart and feature phones. Employees can also use Floatpays’ immediate money vouchers or electronic funds transfers to access their withdrawals.
Employees can use their earned income to purchase pre-paid vouchers for mobile internet, airtime, power, or medical care through the app or USSD.
Floatpays wage Floatpays wage
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer