Paymenow, the leading Earned Wage Access (EWA) platform in South Africa, has secured a R250 million (USD14 million) debt facility from Rand Merchant Bank (RMB) – a landmark achievement for the EWA market in the country. EWA empowers employees to access a percentage of their earned wages before the payroll cycle ends, providing them with funds without having to resort to expensive loans. This innovative financial wellness solution is a game changer for employees who want to improve their financial health and build savings.
Paymenow has grown rapidly in various industries, including retail, mining, security, cleaning, and facilities management, and presently serves over 200,000 employees, with plans to double that number in the next year. CEO Deon Nobrega is thrilled with the demand for Paymenow’s services in South Africa, where over 10 million of the 25 million active credit customers are behind on their payments. The potential market for liquidity is enormous, and Paymenow’s model is proving to be a valuable asset to customers.
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One of the main benefits of Paymenow is its flexibility, which allows employers to offer a hybrid salary model, providing employees with access to a portion of their salary when they need it most. RMB, an indirect shareholder of Paymenow through its shareholding in the DNI Group, is excited to continue to partner with the company to promote financial education and wellness.
Paymenow’s impact report, based on independent research conducted among 400 customers, demonstrates the positive impact the platform has had on their lives. Almost all respondents reported an improvement in their overall quality of life, with nearly two-thirds reporting significant improvements. 83% of customers said their ability to save had improved, and 95% had reduced borrowing from money lenders.
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Paymenow is also expanding its services to Namibia and Zambia, with plans to scale further across Africa, including Lesotho, Ghana, and Kenya. This expansion will offer access to financial wellness and liquidity to a broader customer base and enable Paymenow to make a more significant impact on society.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard