SOUTH AFRICA – Naspers, a multinational holding company, has made a R15 million (US$1m) investment in Floatpays, an on-demand earned wage access platform that helps customers build financial wellness.
“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,” Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, said.
Floatpays provides customers with real-time access to a portion of their earned but not yet paid income at any time during the month, giving them an alternative to using credit to cover unplanned expenses.
Floatpays, which was founded in 2019, helps customers to reduce their reliance on debt, start saving and gain skills to better manage their money.
The solution can reduce financial stress, helping employees avoid expensive credit, payday lenders and borrowing from family or friends when they need funds to make it to payday.
“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,” Simon Ward, Founder and CEO of Floatpays, added.
“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.”
The Floatpays solution for employees is available on smart and feature phones through an app on iOS, Android or by USSD.
Employees can access their withdrawals through Floatpays’ instant money vouchers and via electronic funds transfers (EFTs). Employees can use their earned pay to buy living essentials such as pre-paid vouchers for mobile data, airtime, electricity or medical care via the app or USSD.
“On-demand earned wage access is fast-growing within the fintech sector,” Fabian Whate, Head of Naspers Foundry, said.
“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.”