Toronto-based fintech, KOHO, has launched a new feature called Early Payroll, allowing users to get access to $100 of their scheduled paycheque, three days early.
KOHO offers a reloadable prepaid VISA spending account with no fees, aimed at millennials as an alternative to a traditional bank account from Canada’s big banks. The reloadable VISA also supports Apple Pay and offers cash back on daily spending.
“It’s really common that Canadian’s need a little extra help before making it to payday,” said Daniel Eberhard, Founder and CEO of KOHO, in a statement. “The payday lending industry is predicated on taking advantage of that vulnerability. The KOHO team built a product that is fair, free and accessible to everyone. It’s a huge step forward in our mission to making fair, financial products ubiquitous.”
According to the finch’s research, they noted “a large majority of Canadians experience a cash flow shortage of just a couple hundred dollars between paycheques every month,” which is why the Early Payroll feature launched, to allow users to avoid turning to debt from credit cards and other loans.
KOHO first tested its Early Payroll feature to support Canadian Emergency Response Benefit (CERB) payments and has since expanded it to all users.
If you’ve set up a direct deposit for your payroll, KOHO says you’re eligible to get $100 of your paycheque, three days before it’s scheduled. There are no fees, interest or credit checks or other applications required as part of the feature.
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