Source: Magnitt
Dubai-based social impact startup FlexxPay.com has raised funding from a group of individual and corporate investors to rollout its financial wellness platform that enables companies to offer salary advances to employees for their already earned income.
The launch of the service in the UAE (and KSA in Q4, 2019) follows massive success of similar platforms in the US and UK, and FlexxPay is the first entity of its type in the GCC to empower employers with an instant and dynamic salary payment platform. FlexxPay acts as an agent between employers and their employees, advancing through ADCB a portion of already earned salaries on behalf of the employer.
In a traditional pay cycle, an employee receives a salary at the end of each month. This traditional method of payment fails many paid workers, with more than 50% of the workforce across the region living from payday to payday, unable to cover unexpected expenses that may arise during a month. For many, that means skipping meals, selling possessions, taking on extra work or contemplating other extreme measures.
FlexxPay is a cloud-based technology solution that employers can offer to their employees to help overcome financial shortfalls between paydays. With FlexxPay, employers can directly invest in their most valuable asset – their employees. The solution comes at no cost to the employer and there is no system integration needed.
Utilizing the FlexxPay platform, employees can easily access a portion of their already earned but currently unpaid salary at zero interest rate, paying a fixed nominal transaction fee. They can perform bank transfers, start a savings plan and more in a safe and secure environment.
Advances and fees are then paid by the employer to FlexxPay during the salary cycle at the end of the month, while the employees receive their salaries less the advances and fees already paid out to them earlier in the month.
FlexxPay was co-founded by successful Dubai-based entrepreneur Michael Truschler who previously launched citrussTV, the leading regional TV shopping channel, and Charbel Nasr who held the role of COO at citrussTV for several years before joining FlexxPay.
Commenting on the business, Michael Truschler, co-Founder and CEO of FlexxPay said, “The problem of salaries being paid only monthly while expenses occur every day, deserves a solution. It’s the reason we do what we do. Our mission is to fix the pay frequency problem at its root by providing businesses and their employees with an instant pay platform. We empower those who need it the most to access a portion of their already earned salaries whenever they need to. Working together with ADCB as one of the most reputable banks in the region has enabled us to offer the services in a fully automated way.”
Truschler continued, “FlexxPay offers its platform at no cost and no risk to companies. Businesses that on board to the FlexxPay platform will benefit substantially from increased productivity, engagement and retention, as employees are motivated and are better able to focus on their jobs. Employees will warmly welcome the solution because it provides instant access to funds, removing costly personal loans or stressful levels of indebtedness.”
